FRANKLIN COVEY CO (FC)
US3534691098 - Common Stock
FC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. While FC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FC has a decent growth rate and is not valued too expensively.
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.
In multiple years FC reported negative net income over the last 5 years.
Each year in the past 5 years FC had a positive operating cash flow.
1.2 Ratios
FC's Return On Assets of 7.71% is fine compared to the rest of the industry. FC outperforms 77.78% of its industry peers.
FC has a Return On Equity of 24.14%. This is amongst the best in the industry. FC outperforms 80.25% of its industry peers.
FC's Return On Invested Capital of 24.23% is amongst the best of the industry. FC outperforms 92.59% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FC is above the industry average of 11.78%.
The 3 year average ROIC (14.62%) for FC is below the current ROIC(24.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 24.14% | ||
| ROIC | 24.23% |
ROA(3y)6.6%
ROA(5y)2.96%
ROE(3y)20.64%
ROE(5y)8.98%
ROIC(3y)14.62%
ROIC(5y)9.66%
1.3 Margins
Looking at the Profit Margin, with a value of 6.13%, FC is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
FC has a Operating Margin of 9.52%. This is in the better half of the industry: FC outperforms 71.60% of its industry peers.
FC's Operating Margin has improved in the last couple of years.
The Gross Margin of FC (76.19%) is better than 90.12% of its industry peers.
FC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.52% | ||
| PM (TTM) | 6.13% | ||
| GM | 76.19% |
OM growth 3Y57.21%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.28%
GM growth 5Y1.2%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FC is creating value.
FC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FC has been reduced compared to 5 years ago.
The debt/assets ratio for FC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.34 indicates that FC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.34, FC belongs to the best of the industry, outperforming 80.25% of the companies in the same industry.
The Debt to FCF ratio of FC is 0.26, which is an excellent value as it means it would take FC, only 0.26 years of fcf income to pay off all of its debts.
FC's Debt to FCF ratio of 0.26 is amongst the best of the industry. FC outperforms 81.48% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that FC is not too dependend on debt financing.
FC has a better Debt to Equity ratio (0.06) than 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 4.34 |
ROIC/WACC2.69
WACC9.01%
2.3 Liquidity
FC has a Current Ratio of 0.88. 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 0.88, FC is doing worse than 85.19% of the companies in the same industry.
FC has a Quick Ratio of 0.88. This is a bad value and indicates that FC is not financially healthy enough and could expect problems in meeting its short term obligations.
FC has a Quick ratio of 0.85. This is amonst the worse of the industry: FC underperforms 83.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for FC have decreased by -2.99% in the last year.
Looking at the last year, FC shows a small growth in Revenue. The Revenue has grown by 1.10% in the last year.
The Revenue has been growing slightly by 5.98% on average over the past years.
EPS 1Y (TTM)-2.99%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q8.33%
Revenue 1Y (TTM)1.1%
Revenue growth 3Y12.22%
Revenue growth 5Y5.98%
Revenue growth Q2Q-0.68%
3.2 Future
FC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.71% yearly.
Based on estimates for the next years, FC will show a quite strong growth in Revenue. The Revenue will grow by 9.18% on average per year.
EPS Next Y41.32%
EPS Next 2Y32.71%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.11%
Revenue Next 2Y4.65%
Revenue Next 3Y6.95%
Revenue Next 5Y9.18%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FC is valuated quite expensively with a Price/Earnings ratio of 30.55.
Based on the Price/Earnings ratio, FC is valued a bit more expensive than 69.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of FC to the average of the S&P500 Index (28.02), we can say FC is valued inline with the index average.
The Price/Forward Earnings ratio is 18.04, 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 (20.58), we can say FC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.55 | ||
| Fwd PE | 18.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FC is valued a bit cheaper than 60.49% of the companies in the same industry.
85.19% 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 | 12.08 | ||
| EV/EBITDA | 14.32 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of FC may justify a higher PE ratio.
FC's earnings are expected to grow with 32.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y32.71%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRANKLIN COVEY CO
NYSE:FC (5/7/2024, 2:05:03 PM)
39.71
-0.24 (-0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap526.95M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.55 | ||
| Fwd PE | 18.04 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 24.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.52% | ||
| PM (TTM) | 6.13% | ||
| GM | 76.19% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-2.99%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y41.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.1%
Revenue growth 3Y12.22%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y