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FC

Franklin CoveyNYSE:FC Stock Report

Market Cap

US$622.0m

7D

-4.1%

1Y

102.9%

Updated

02 Dec, 2021

Data

Company Financials +
FC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance3/6
Financial Health5/6
Dividends0/6

FC Stock Overview

Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide.

Rewards

Trading at 50.3% below our estimate of its fair value

Earnings are forecast to grow 12.63% per year

Became profitable this year

Risk Analysis

No risks detected for FC from our risk checks.

Franklin Covey Competitors

Newell Brands

NasdaqGS:NWL

US$9.1b

CCL Industries

TSX:CCL.B

CA$11.3b

Coursera

NYSE:COUR

US$4.1b

Korn Ferry

NYSE:KFY

US$4.0b

Price History & Performance

Summary of all time highs, changes and price drops for Franklin Covey
Historical stock prices
Current Share PriceUS$44.98
52 Week HighUS$50.92
52 Week LowUS$21.24
Beta1.75
1 Month Change3.86%
3 Month Change7.97%
1 Year Change102.89%
3 Year Change90.03%
5 Year Change114.70%
Change since IPO151.64%

Recent News & Updates

Aug 28
Capital Allocation Trends At Franklin Covey (NYSE:FC) Aren't Ideal

Capital Allocation Trends At Franklin Covey (NYSE:FC) Aren't Ideal

If we're looking to avoid a business that is in decline, what are the trends that can warn us ahead of time? Businesses...

Aug 17

Franklin Covey - Unknown SaaS Business Trading At A Huge Discount

Franklin Covey has built a $100 million subscription business over the past five years. Its stock trades at only 1.9x 2022E sales and 10.6x EBITDA. Rapid EBITDA growth over the next five years will outpace revenue growth.

Jul 15
Why Franklin Covey's (NYSE:FC) Earnings Are Better Than They Seem

Why Franklin Covey's (NYSE:FC) Earnings Are Better Than They Seem

Franklin Covey Co.'s ( NYSE:FC ) recent earnings report didn't offer any surprises, with the shares unchanged over the...

Shareholder Returns

FCUS Professional ServicesUS Market
7D-4.1%-5.2%-4.9%
1Y102.9%14.4%17.8%

Return vs Industry: FC exceeded the US Professional Services industry which returned 14.4% over the past year.

Return vs Market: FC exceeded the US Market which returned 17.8% over the past year.

Price Volatility

Is FC's price volatile compared to industry and market?
FC volatility
FC Average Weekly Movement3.8%
Professional Services Industry Average Movement5.6%
Market Average Movement6.0%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

Stable Share Price: FC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19831,000Paul Walkerhttps://www.franklincovey.com

Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through three segments: Direct Offices, International Licensees, and Education Practice. It also provides a suite of individual-effectiveness and leadership-development training and products.

Franklin Covey Fundamentals Summary

How do Franklin Covey's earnings and revenue compare to its market cap?
FC fundamental statistics
Market CapUS$621.98m
Earnings (TTM)US$13.62m
Revenue (TTM)US$224.17m

47.2x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FC income statement (TTM)
RevenueUS$224.17m
Cost of RevenueUS$51.27m
Gross ProfitUS$172.90m
ExpensesUS$159.28m
EarningsUS$13.62m

Last Reported Earnings

Aug 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.95
Gross Margin77.13%
Net Profit Margin6.08%
Debt/Equity Ratio23.6%

How did FC perform over the long term?

See historical performance and comparison

Valuation

Is Franklin Covey undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FC ($44.98) is trading below our estimate of fair value ($90.42)

Significantly Below Fair Value: FC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FC is poor value based on its PE Ratio (47.2x) compared to the US Professional Services industry average (22.7x).

PE vs Market: FC is poor value based on its PE Ratio (47.2x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: FC is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: FC is overvalued based on its PB Ratio (8x) compared to the US Professional Services industry average (2.9x).


Future Growth

How is Franklin Covey forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FC's forecast earnings growth (12.6% per year) is above the savings rate (2%).

Earnings vs Market: FC's earnings (12.6% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: FC's earnings are forecast to grow, but not significantly.

Revenue vs Market: FC's revenue (9.3% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: FC's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Franklin Covey performed over the past 5 years?

7.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FC has high quality earnings.

Growing Profit Margin: FC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FC's earnings have grown by 7.6% per year over the past 5 years.

Accelerating Growth: FC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Professional Services industry (30.2%).


Return on Equity

High ROE: FC's Return on Equity (17.1%) is considered low.


Financial Health

How is Franklin Covey's financial position?


Financial Position Analysis

Short Term Liabilities: FC's short term assets ($136.7M) exceed its short term liabilities ($136.5M).

Long Term Liabilities: FC's short term assets ($136.7M) exceed its long term liabilities ($33.3M).


Debt to Equity History and Analysis

Debt Level: FC has more cash than its total debt.

Reducing Debt: FC's debt to equity ratio has increased from 15.1% to 23.6% over the past 5 years.

Debt Coverage: FC's debt is well covered by operating cash flow (245.5%).

Interest Coverage: FC's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Dividend

What is Franklin Covey current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.9yrs

Average management tenure


CEO

Paul Walker (46 yo)

0.25

Tenure

US$1,096,884

Compensation

Mr. Paul S. Walker has been Chief Executive Officer of Franklin Covey Co. since September 1, 2021 and as its President since November 7, 2019. He served as Chief Operating Officer at Franklin Covey Co. fro...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.10M) is below average for companies of similar size in the US market ($USD2.31M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: FC's management team is seasoned and experienced (6.9 years average tenure).


Board Members

Experienced Board: FC's board of directors are considered experienced (9.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Franklin Covey Co.'s employee growth, exchange listings and data sources


Key Information

  • Name: Franklin Covey Co.
  • Ticker: FC
  • Exchange: NYSE
  • Founded: 1983
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$621.978m
  • Shares outstanding: 14.29m
  • Website: https://www.franklincovey.com

Number of Employees


Location

  • Franklin Covey Co.
  • 2200 West Parkway Boulevard
  • Salt Lake City
  • Utah
  • 84119-2331
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 23:33
End of Day Share Price2021/12/02 00:00
Earnings2021/08/31
Annual Earnings2021/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.