FRANKLIN COVEY CO (FC) Stock Fundamental Analysis
NYSE:FC - US3534691098 - Common Stock
19.56 USD
-0.12 (-0.61%)
19.56 USD
0 (0%)
Taking everything into account, FC scores 5 out of 10 in our fundamental rating. FC was compared to 83 industry peers in the Professional Services industry. FC scores excellent on profitability, but there are some minor concerns on its financial health. FC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
FC had positive earnings in the past year.
FC had a positive operating cash flow in the past year.
FC had positive earnings in 4 of the past 5 years.
In the past 5 years FC always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.88%, FC perfoms like the industry average, outperforming 57.83% of the companies in the same industry.
FC has a Return On Equity of 16.24%. This is in the better half of the industry: FC outperforms 68.67% of its industry peers.
FC's Return On Invested Capital of 18.23% is amongst the best of the industry. FC outperforms 86.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FC is significantly above the industry average of 12.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 16.24% | ||
| ROIC | 18.23% |
ROA(3y)7.76%
ROA(5y)4.83%
ROE(3y)24.34%
ROE(5y)14.85%
ROIC(3y)20.39%
ROIC(5y)13.9%
1.3 Margins
FC has a Profit Margin (3.81%) which is in line with its industry peers.
FC's Profit Margin has improved in the last couple of years.
FC has a better Operating Margin (8.03%) than 65.06% of its industry peers.
FC's Operating Margin has improved in the last couple of years.
FC has a better Gross Margin (76.99%) than 87.95% of its industry peers.
FC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.03% | ||
| PM (TTM) | 3.81% | ||
| GM | 76.99% |
OM growth 3Y52.06%
OM growth 5Y83.36%
PM growth 3Y10.27%
PM growth 5YN/A
GM growth 3Y-0.07%
GM growth 5Y1.72%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FC is creating value.
Compared to 1 year ago, FC has less shares outstanding
The number of shares outstanding for FC has been reduced compared to 5 years ago.
FC has a better debt/assets ratio than last year.
2.2 Solvency
FC has an Altman-Z score of 3.26. This indicates that FC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FC (3.26) is comparable to the rest of the industry.
FC has a debt to FCF ratio of 0.08. This is a very positive value and a sign of high solvency as it would only need 0.08 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.08, FC belongs to the best of the industry, outperforming 83.13% of the companies in the same industry.
FC has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.02, FC is doing good in the industry, outperforming 71.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 3.26 |
ROIC/WACC2.07
WACC8.8%
2.3 Liquidity
A Current Ratio of 0.84 indicates that FC may have some problems paying its short term obligations.
FC has a worse Current ratio (0.84) than 80.72% of its industry peers.
FC has a Quick Ratio of 0.84. This is a bad value and indicates that FC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of FC (0.81) is worse than 80.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for FC have decreased strongly by -43.97% in the last year.
FC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.11% yearly.
FC shows a decrease in Revenue. In the last year, the revenue decreased by -0.40%.
Measured over the past years, FC shows a small growth in Revenue. The Revenue has been growing by 4.97% on average per year.
EPS 1Y (TTM)-43.97%
EPS 3Y23.11%
EPS 5YN/A
EPS Q2Q%-125.58%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y8.61%
Revenue growth 5Y4.97%
Sales Q2Q%-8.52%
3.2 Future
The Earnings Per Share is expected to decrease by -30.15% on average over the next years. This is quite bad
FC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.11% yearly.
EPS Next Y-80.65%
EPS Next 2Y-30.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.84%
Revenue Next 2Y-2.37%
Revenue Next 3Y11.22%
Revenue Next 5Y12.11%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.76 indicates a rather expensive valuation of FC.
FC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.13, FC is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.15, the valuation of FC can be described as rather expensive.
FC's Price/Forward Earnings is on the same level as the industry average.
FC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.76 | ||
| Fwd PE | 22.15 |
4.2 Price Multiples
FC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FC is cheaper than 87.95% of the companies in the same industry.
89.16% of the companies in the same industry are more expensive than FC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.24 | ||
| EV/EBITDA | 6.91 |
4.3 Compensation for Growth
The decent profitability rating of FC may justify a higher PE ratio.
FC's earnings are expected to decrease with -30.15% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-30.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.56
-0.12 (-0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners83.46%
Inst Owner Change-5.59%
Ins Owners14.63%
Ins Owner Change0.19%
Market Cap247.24M
Analysts85.45
Price Target33.66 (72.09%)
Short Float %7.84%
Short Ratio6.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-72.85%
Min EPS beat(2)-184.79%
Max EPS beat(2)39.08%
EPS beat(4)2
Avg EPS beat(4)-45.17%
Min EPS beat(4)-184.79%
Max EPS beat(4)39.08%
EPS beat(8)5
Avg EPS beat(8)6.41%
EPS beat(12)7
Avg EPS beat(12)9.74%
EPS beat(16)10
Avg EPS beat(16)68.34%
Revenue beat(2)0
Avg Revenue beat(2)-5.52%
Min Revenue beat(2)-7.6%
Max Revenue beat(2)-3.44%
Revenue beat(4)1
Avg Revenue beat(4)-3.45%
Min Revenue beat(4)-7.6%
Max Revenue beat(4)1.61%
Revenue beat(8)2
Avg Revenue beat(8)-3.18%
Revenue beat(12)3
Avg Revenue beat(12)-2.34%
Revenue beat(16)5
Avg Revenue beat(16)-1.2%
PT rev (1m)0%
PT rev (3m)-20.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.93%
EPS NY rev (1m)-6.21%
EPS NY rev (3m)-38.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.76 | ||
| Fwd PE | 22.15 | ||
| P/S | 0.88 | ||
| P/FCF | 8.24 | ||
| P/OCF | 6.04 | ||
| P/B | 3.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.91 |
EPS(TTM)0.79
EY4.04%
EPS(NY)0.88
Fwd EY4.52%
FCF(TTM)2.37
FCFY12.14%
OCF(TTM)3.24
OCFY16.55%
SpS22.15
BVpS5.19
TBVpS-0.1
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 16.24% | ||
| ROCE | 26.13% | ||
| ROIC | 18.23% | ||
| ROICexc | 29.99% | ||
| ROICexgc | N/A | ||
| OM | 8.03% | ||
| PM (TTM) | 3.81% | ||
| GM | 76.99% | ||
| FCFM | 10.72% |
ROA(3y)7.76%
ROA(5y)4.83%
ROE(3y)24.34%
ROE(5y)14.85%
ROIC(3y)20.39%
ROIC(5y)13.9%
ROICexc(3y)40.24%
ROICexc(5y)26.77%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)29.23%
ROCE(5y)19.92%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y80.39%
ROICexc growth 5Y117.86%
OM growth 3Y52.06%
OM growth 5Y83.36%
PM growth 3Y10.27%
PM growth 5YN/A
GM growth 3Y-0.07%
GM growth 5Y1.72%
F-Score7
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.08 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 124% | ||
| Cap/Sales | 3.89% | ||
| Interest Coverage | 37.2 | ||
| Cash Conversion | 130.91% | ||
| Profit Quality | 281.82% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 3.26 |
F-Score7
WACC8.8%
ROIC/WACC2.07
Cap/Depr(3y)103.34%
Cap/Depr(5y)85.79%
Cap/Sales(3y)3.51%
Cap/Sales(5y)3.41%
Profit Quality(3y)197.25%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-43.97%
EPS 3Y23.11%
EPS 5YN/A
EPS Q2Q%-125.58%
EPS Next Y-80.65%
EPS Next 2Y-30.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y8.61%
Revenue growth 5Y4.97%
Sales Q2Q%-8.52%
Revenue Next Year-5.84%
Revenue Next 2Y-2.37%
Revenue Next 3Y11.22%
Revenue Next 5Y12.11%
EBIT growth 1Y-22.62%
EBIT growth 3Y65.16%
EBIT growth 5Y92.47%
EBIT Next Year-5.72%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y13.68%
FCF growth 3Y5.71%
FCF growth 5Y16.05%
OCF growth 1Y5.81%
OCF growth 3Y9.28%
OCF growth 5Y14.63%