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FC: Share Repurchases Will Support Future Earnings Power And Upside Potential

Regulatory Pressures Will Limit Expansion Though Resilience Will Shine

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FC
AnalystLowTarget
Not Invested
Published 22 Jun 2025

Update shared on 19 Dec 2025

Fair value Decreased 19%
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AnalystLowTarget's Fair Value
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1Y
-54.4%
7D
3.2%

Analysts have revised their price target for Franklin Covey from 27.00 dollars to 22.00 dollars, reflecting a higher required discount rate and a lower valuation multiple, despite slightly stronger expectations for revenue growth and profit margins.

What's in the News

  • Franklin Covey completed the repurchase of 750,651 shares, representing 5.74% of outstanding stock, for 22.13 million dollars under its April 18, 2024 buyback authorization (Key Developments).
  • From August 13 to August 31, 2025, the company repurchased an additional 167,753 shares, or 1.33% of outstanding shares, for 3.34 million dollars under a new buyback announced on August 13, 2025 (Key Developments).
  • The company issued fiscal 2026 guidance, projecting total revenue between 265 million and 275 million dollars, citing momentum across Enterprise and Education despite macroeconomic uncertainty (Key Developments).
  • Franklin Covey launched a new leadership course titled “Disrupt Everything: Innovate for Impact,” aimed at helping leaders navigate constant disruption and leverage team strengths through a structured framework, available via the All Access Pass Plus (Key Developments).
  • The firm also introduced “Writing for Results,” a course designed to improve organizational writing effectiveness and optionally integrate AI tools, offered in live and on demand formats through the Franklin Covey All Access Pass (Key Developments).

Valuation Changes

  • Fair Value Estimate: Reduced from 27.00 dollars to 22.00 dollars, a significant downward adjustment in the target valuation.
  • Discount Rate: Increased slightly from 7.00 percent to approximately 7.21 percent, reflecting a modestly higher required return.
  • Revenue Growth: Nudged higher from about 2.93 percent to roughly 3.12 percent, indicating slightly stronger long term growth expectations.
  • Net Profit Margin: Raised markedly from about 5.54 percent to around 8.99 percent, implying a meaningfully improved long term profitability outlook.
  • Future P/E: Lowered significantly from roughly 21.52 times to about 9.27 times, signaling a substantial compression in the valuation multiple applied to future earnings.

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