FRANKLIN COVEY CO (FC) Stock Fundamental Analysis
NYSE:FC - New York Stock Exchange, Inc. - US3534691098 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to FC. FC was compared to 82 industry peers in the Professional Services industry. FC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FC is not valued too expensively and it also shows a decent growth rate. These ratings could make FC a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
FC had positive earnings in the past year.
In the past year FC had a positive cash flow from operations.
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
FC has a Return On Assets of 8.03%. This is in the better half of the industry: FC outperforms 73.17% of its industry peers.
FC has a Return On Equity of 24.52%. This is in the better half of the industry: FC outperforms 74.39% of its industry peers.
The Return On Invested Capital of FC (23.17%) is better than 91.46% of its industry peers.
FC had an Average Return On Invested Capital over the past 3 years of 20.39%. This is significantly above the industry average of 13.37%.
The 3 year average ROIC (20.39%) for FC is below the current ROIC(23.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 24.52% | ||
| ROIC | 23.17% |
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 of 6.21%. This is in the better half of the industry: FC outperforms 67.07% of its industry peers.
FC's Profit Margin has improved in the last couple of years.
FC has a better Operating Margin (10.12%) than 75.61% of its industry peers.
FC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 77.01%, FC belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
FC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.12% | ||
| PM (TTM) | 6.21% | ||
| GM | 77.01% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FC is creating value.
FC has less shares outstanding than it did 1 year ago.
FC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FC has been reduced compared to a year ago.
2.2 Solvency
FC has an Altman-Z score of 3.54. This indicates that FC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.54, FC is doing good in the industry, outperforming 69.51% of the companies in the same industry.
The Debt to FCF ratio of FC is 0.13, which is an excellent value as it means it would take FC, only 0.13 years of fcf income to pay off all of its debts.
FC's Debt to FCF ratio of 0.13 is amongst the best of the industry. FC outperforms 86.59% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that FC is not too dependend on debt financing.
FC has a better Debt to Equity ratio (0.03) than 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 3.54 |
ROIC/WACC2.6
WACC8.9%
2.3 Liquidity
FC has a Current Ratio of 0.90. This is a bad value and indicates that FC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.90, FC is doing worse than 76.83% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that FC may have some problems paying its short term obligations.
FC has a Quick ratio of 0.87. This is in the lower half of the industry: FC underperforms 78.05% of its industry peers.
The current and quick ratio evaluation for FC is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.31% over the past year.
FC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.11% yearly.
The Revenue has been growing slightly by 2.53% in the past year.
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)2.31%
EPS 3Y23.11%
EPS 5YN/A
EPS Q2Q%-161.54%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y8.61%
Revenue growth 5Y4.97%
Sales Q2Q%-2.81%
3.2 Future
The Earnings Per Share is expected to decrease by -20.88% 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-68.42%
EPS Next 2Y-20.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.45%
Revenue Next 2Y1.33%
Revenue Next 3Y11.22%
Revenue Next 5Y12.11%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 15.68, which indicates a correct valuation of FC.
Compared to the rest of the industry, the Price/Earnings ratio of FC indicates a somewhat cheap valuation: FC is cheaper than 60.98% of the companies listed in the same industry.
FC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.41, which indicates a rather expensive current valuation of FC.
The rest of the industry has a similar Price/Forward Earnings ratio as FC.
When comparing the Price/Forward Earnings ratio of FC to the average of the S&P500 Index (20.74), we can say FC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 18.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FC is valued cheaper than 87.80% of the companies in the same industry.
FC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FC is cheaper than 93.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.19 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
The excellent profitability rating of FC may justify a higher PE ratio.
FC's earnings are expected to decrease with -20.88% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.86
-0.33 (-1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners78.03%
Inst Owner Change-1.81%
Ins Owners15.33%
Ins Owner Change-1.48%
Market Cap270.97M
Analysts85.45
Price Target42.5 (103.74%)
Short Float %8.91%
Short Ratio6.02
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)-0.84%
Min EPS beat(2)-40.76%
Max EPS beat(2)39.08%
EPS beat(4)3
Avg EPS beat(4)2.79%
Min EPS beat(4)-40.76%
Max EPS beat(4)39.08%
EPS beat(8)6
Avg EPS beat(8)34.46%
EPS beat(12)8
Avg EPS beat(12)40.16%
EPS beat(16)11
Avg EPS beat(16)167.05%
Revenue beat(2)0
Avg Revenue beat(2)-5.99%
Min Revenue beat(2)-7.6%
Max Revenue beat(2)-4.39%
Revenue beat(4)1
Avg Revenue beat(4)-2.9%
Min Revenue beat(4)-7.6%
Max Revenue beat(4)1.61%
Revenue beat(8)2
Avg Revenue beat(8)-2.8%
Revenue beat(12)3
Avg Revenue beat(12)-2.07%
Revenue beat(16)6
Avg Revenue beat(16)-0.33%
PT rev (1m)-30.56%
PT rev (3m)-24.24%
EPS NQ rev (1m)-111.81%
EPS NQ rev (3m)-112.29%
EPS NY rev (1m)-43.08%
EPS NY rev (3m)-43.08%
Revenue NQ rev (1m)-12.79%
Revenue NQ rev (3m)-13.32%
Revenue NY rev (1m)-7.03%
Revenue NY rev (3m)-7.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 18.41 | ||
| P/S | 0.95 | ||
| P/FCF | 8.19 | ||
| P/OCF | 6.33 | ||
| P/B | 3.74 | ||
| P/tB | 51.72 | ||
| EV/EBITDA | 6.26 |
EPS(TTM)1.33
EY6.38%
EPS(NY)1.13
Fwd EY5.43%
FCF(TTM)2.55
FCFY12.21%
OCF(TTM)3.3
OCFY15.8%
SpS22.03
BVpS5.58
TBVpS0.4
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.03% | ||
| ROE | 24.52% | ||
| ROCE | 33.21% | ||
| ROIC | 23.17% | ||
| ROICexc | 43.14% | ||
| ROICexgc | N/A | ||
| OM | 10.12% | ||
| PM (TTM) | 6.21% | ||
| GM | 77.01% | ||
| FCFM | 11.56% |
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-Score9
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.13 | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 105.51% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 38.23 | ||
| Cash Conversion | 112.12% | ||
| Profit Quality | 186.12% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 3.54 |
F-Score9
WACC8.9%
ROIC/WACC2.6
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)2.31%
EPS 3Y23.11%
EPS 5YN/A
EPS Q2Q%-161.54%
EPS Next Y-68.42%
EPS Next 2Y-20.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.53%
Revenue growth 3Y8.61%
Revenue growth 5Y4.97%
Sales Q2Q%-2.81%
Revenue Next Year-2.45%
Revenue Next 2Y1.33%
Revenue Next 3Y11.22%
Revenue Next 5Y12.11%
EBIT growth 1Y9.08%
EBIT growth 3Y65.16%
EBIT growth 5Y92.47%
EBIT Next Year-0.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y14.08%
FCF growth 3Y5.71%
FCF growth 5Y16.05%
OCF growth 1Y6.46%
OCF growth 3Y9.28%
OCF growth 5Y14.63%