NYSE:FC

Stock Analysis Report

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Executive Summary

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

Rewards

Trading at 46% below our estimate of its fair value

Earnings are forecast to grow 146.6% per year

Risk Analysis

No risks detected for FC from our risk checks.


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Franklin Covey's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: FC's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

2.6%

FC

-0.3%

US Professional Services

2.8%

US Market


1 Year Return

-39.0%

FC

23.5%

US Professional Services

20.7%

US Market

Return vs Industry: FC underperformed the US Professional Services industry which returned 22.4% over the past year.

Return vs Market: FC underperformed the US Market which returned 19.8% over the past year.


Shareholder returns

FCIndustryMarket
7 Day2.6%-0.3%2.8%
30 Day35.9%12.9%12.3%
90 Day10.2%7.7%6.4%
1 Year-39.0%-39.0%24.3%23.5%23.4%20.7%
3 Year11.4%11.4%60.9%56.4%47.2%37.4%
5 Year49.9%49.9%106.6%95.8%94.1%72.7%

Long-Term Price Volatility Vs. Market

How volatile is Franklin Covey's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

46.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FC ($22.5) is trading below our estimate of fair value ($41.7)

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


Price To Earnings Ratio

PE vs Industry: FC is unprofitable, so we can't compare its PE Ratio to the US Professional Services industry average.

PE vs Market: FC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FC is overvalued based on its PB Ratio (5.3x) compared to the US Professional Services industry average (3x).


Next Steps

Future Growth

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

146.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: FC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FC's is expected to become profitable in the next 3 years.

Revenue vs Market: FC's revenue (8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: FC's revenue (8% 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


Next Steps

Past Performance

How has Franklin Covey performed over the past 5 years?

-50.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FC is currently unprofitable.

Growing Profit Margin: FC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FC is unprofitable, and losses have increased over the past 5 years at a rate of 50.8% per year.

Accelerating Growth: Unable to compare FC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FC is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (-0.06%).


Return on Equity

High ROE: FC has a negative Return on Equity (-15.87%), as it is currently unprofitable.


Next Steps

Financial Health

How is Franklin Covey's financial position?


Financial Position Analysis

Short Term Liabilities: FC's short term assets ($101.7M) do not cover its short term liabilities ($102.5M).

Long Term Liabilities: FC's short term assets ($101.7M) exceed its long term liabilities ($43.5M).


Debt to Equity History and Analysis

Debt Level: FC's debt to equity ratio (33.6%) is considered satisfactory.

Reducing Debt: FC's debt to equity ratio has increased from 0% to 33.6% over the past 5 years.

Debt Coverage: FC's debt is well covered by operating cash flow (137.8%).

Interest Coverage: FC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

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?

9.1yrs

Average management tenure


CEO

Bob Whitman (66 yo)

20.83yrs

Tenure

US$2,932,402

Compensation

Mr. Robert A. Whitman, also known as Bob, has been the Chairman and Chief Executive Officer at Franklin Covey Co. since June 1999 & January 2000 respectively. He served as President at Franklin Covey Co. u...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD2.93M) is above average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: Bob's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Whitman
Chairman & CEO20.83yrsUS$2.93m4.56%
$ 14.4m
Paul Walker
President & COO1yrUS$1.03m0.25%
$ 783.1k
Stephen Young
CFO & Corporate Secretary18yrsUS$1.15m1.65%
$ 5.2m
Michael Sean Covey
President of Franklin Covey Education14.58yrsUS$960.12k1.48%
$ 4.7m
Colleen Dom
Executive Vice-President of Operations1yrUS$826.19k0.25%
$ 799.8k
Carol Fineagan
Chief Information Officer5.83yrsno datano data
Debra Lund
Global Director of Corporate Public Relationsno datano datano data
Clifton Davis
Executive VP & Chief People Officerno dataUS$678.73k0.20%
$ 633.6k
Jennifer Colosimo
President of Enterprise Division0.83yrUS$306.51kno data
Josh Farrell
Managing Director of Australia & New Zealandno datano datano data
Suzette Bergin-Blakemore
Managing Directorno datano datano data
Brian Martini
President of Franklin Covey Japan Co & GM of Franklin Covey Japan Co12.42yrsno datano data

9.1yrs

Average Tenure

59yo

Average Age

Experienced Management: FC's management team is seasoned and experienced (9.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Whitman
Chairman & CEO20.83yrsUS$2.93m4.56%
$ 14.4m
Esther Stepp
Independent Director23.5yrsUS$180.00k0.18%
$ 554.6k
Michael Fung
Independent Director8.33yrsUS$185.00k0.29%
$ 907.9k
Derek C. van Bever
Independent Director1.17yrsno data0.022%
$ 68.9k
Dennis Heiner
Lead Independent Director12.25yrsUS$205.00k0.52%
$ 1.6m
Joel Clinton Peterson
Director23.5yrsUS$140.00k1.62%
$ 5.1m
Donald McNamara
Independent Director21.42yrsUS$140.00k3.11%
$ 9.8m
Nancy Phillips
Director0.50yrno datano data
Anne Chow
Independent Director4.67yrsUS$170.00k0.11%
$ 331.4k

12.3yrs

Average Tenure

67yo

Average Age

Experienced Board: FC's board of directors are seasoned and experienced ( 12.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Franklin Covey Co.'s company bio, 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$315.572m
  • Shares outstanding: 14.03m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FCNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1992

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 00:04
End of Day Share Price2020/11/27 00:00
Earnings2020/08/31
Annual Earnings2020/08/31


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.