Franklin Wireless Corp. (FKWL) intrinsic value & 10-year financials

Franklin Wireless Corp. (FKWL) has a Graham intrinsic value of $3.70 per share. At $2.25 on Oct 18, 2026, the stock trades 39% below that value. Over the last 10 fiscal years revenue shrank 2.9% a year to $46.1M, with an average return on invested capital of 34.1%.

Graham intrinsic value
$3.70
Share price (Oct 18, 2026)
$2.25
Price vs Graham value
39% below
Market cap
$26.5M
Revenue (FY2025)
$46.1M
Revenue growth (10-yr CAGR)
-2.9%
ROIC (10-yr avg)
34.1%
Free cash flow (FY2025)
$1.8M

FKWL 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $46.1M -$243.1K -$0.02 $1.8M -6.2% -10.7%
FY2024 $30.8M -$4.0M -$0.34 -$828.4K -19.3% -18.9%
FY2023 $45.9M -$2.9M -$0.24 -$1.9M -5.1% -8.6%
FY2022 $24.0M -$3.8M -$0.32 -$7.4M -20.7% -54.7%
FY2021 $184.1M $17.7M $1.53 $12.1M 12.4% -463.4%
FY2020 $75.1M $5.6M $0.52 $21.8M 9.4% 862.8%
FY2019 $36.5M -$1.3M -$0.12 $674.3K -5.8% -18.9%
FY2018 $30.1M -$2.1M -$0.20 -$2.0M -9.0% -14.4%
FY2017 $48.6M $874.0K $0.08 $1.4M 1.8% 15.4%
FY2016 $59.8M $1.6M $0.15 $2.5M 3.5% 52.3%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

FRANKLIN WIRELESS CORP is facing top-line stagnation, with revenue contracting over the decade.

FRANKLIN WIRELESS CORP has historically struggled to out-earn its cost of capital, averaging just -5.4% ROIC.

FRANKLIN WIRELESS CORP has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, FRANKLIN WIRELESS CORP is modeled at -2.9% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $3.70 per share.

FKWL stock: frequently asked questions

What is the intrinsic value of Franklin Wireless Corp. (FKWL) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a -2.9% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, FKWL's intrinsic value is about $3.70 per share.

Is FKWL stock undervalued?

At $2.25 (close on Oct 18, 2026), FKWL trades 39% below its Graham value of $3.70. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has Franklin Wireless Corp. grown?

Revenue went from $59.8M in fiscal 2016 to $46.1M in fiscal 2025, a compound annual growth rate of -2.9%. Net income was -$243.1K in fiscal 2025.

Does Franklin Wireless Corp. generate free cash flow?

Franklin Wireless Corp. generated $1.8M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 6 of the last 10 reported years.

What is FKWL's return on invested capital?

Average ROIC over the last 10 fiscal years was 34.1%, and average return on equity was 5.3%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this FKWL data come from?

From Franklin Wireless Corp.'s annual 10-K filings on SEC EDGAR, most recently filed May 15, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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