Deep Value: cash covers more than 100% of the stock price

This company holds roughly $33M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Franklin Wireless

FKWL

Communication Equipment · Technology

Exchange

NASDAQ Capital Market

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Weak

Stability

Good

Valuation

Data not available

Dividends

Weak

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Winston Score History

The full picture

Franklin Wireless makes small portable devices that connect to the internet using cellular networks — similar to the mobile hotspots you might use when there's no Wi-Fi around. The company sells these devices, often called mobile hotspots or routers, mainly to large wireless carriers in the United States, which then resell them to consumers or provide them through government-funded programs that help low-income households get internet access.

Franklin Wireless earns most of its revenue by selling hardware devices to carriers, which means its income depends heavily on winning and keeping contracts with a small number of big customers. It is a small company, with a market cap under $100 million, and it has relied significantly on programs like the FCC's Emergency Broadband Benefit and its successor, the Affordable Connectivity Program. The end of that federal subsidy program in 2024 removed a major source of demand, and finding new revenue streams to replace it is the company's central challenge going forward.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-57.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-137.7% YoY

YoY Growth Rate

Earnings declining

Insider Activity

28.4%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$33M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Franklin Wireless's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

15.8%

Thin — 15.8% gross margin

Profit after running costs

Operating Margin

-43.9%

Losing money on operations — -43.9%

Return on the money invested

ROCE

-6.5%

Weak — -6.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-22.6%

Shrinking sales (-22.6% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-10.1%

Burning cash (-10.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.01

Conservative — low debt load (0.01)

Covers its interest

Interest Cover

N/A

—

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend

Dividend Yield

1.69%

no trend

Small dividend — 1.69% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

N/A

no trend

Data not available

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