FRANKLIN COVEY CO (FC) Stock Fundamental Analysis
NYSE:FC - New York Stock Exchange, Inc. - US3534691098 - Common Stock - Currency: USD
FC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. Both the health and profitability get an excellent rating, making FC a very profitable company, without any liquidiy or solvency issues. FC is not valued too expensively and it also shows a decent growth rate. These ratings would make FC suitable for quality investing!
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.
Of the past 5 years FC 4 years were profitable.
Each year in the past 5 years FC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.03%, FC is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
With a decent Return On Equity value of 24.52%, FC is doing good in the industry, outperforming 74.39% of the companies in the same industry.
FC has a Return On Invested Capital of 23.17%. This is amongst the best in the industry. FC outperforms 90.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FC is significantly above the industry average of 13.58%.
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's Profit Margin of 6.21% is fine compared to the rest of the industry. FC outperforms 65.85% of its industry peers.
FC's Profit Margin has improved in the last couple of years.
FC's Operating Margin of 10.12% is fine compared to the rest of the industry. FC outperforms 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.
In the last couple of years the Gross Margin of FC has grown nicely.
| 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.
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
FC has an Altman-Z score of 3.50. This indicates that FC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.50, FC is in the better half of the industry, outperforming 71.95% of the companies in the same industry.
FC has a debt to FCF ratio of 0.13. This is a very positive value and a sign of high solvency as it would only need 0.13 years to pay back of all of its debts.
FC has a better Debt to FCF ratio (0.13) than 85.37% of its industry peers.
FC has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FC (0.03) is better than 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 3.5 |
ROIC/WACC2.6
WACC8.91%
2.3 Liquidity
A Current Ratio of 0.90 indicates that FC may have some problems paying its short term obligations.
The Current ratio of FC (0.90) is worse than 75.61% of its industry peers.
FC has a Quick 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.
FC's Quick ratio of 0.87 is on the low side compared to the rest of the industry. FC is outperformed by 76.83% 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.
Measured over the past years, FC shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.11% on average per year.
Looking at the last year, FC shows a small growth in Revenue. The Revenue has grown by 2.53% in the last year.
FC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.97% yearly.
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
Based on estimates for the next years, FC will show a quite strong growth in Revenue. The Revenue will grow by 12.11% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 14.92 indicates a correct valuation of FC.
63.41% of the companies in the same industry are more expensive than FC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, FC is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.51, which indicates a rather expensive current valuation of FC.
FC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.32. FC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 17.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FC is valued cheaply inside the industry as 89.02% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FC is valued cheaper than 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| EV/EBITDA | 5.98 |
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 |
19.84
-0.53 (-2.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners78.03%
Inst Owner Change0.16%
Ins Owners15.33%
Ins Owner Change-1.48%
Market Cap257.72M
Analysts85.45
Price Target61.2 (208.47%)
Short Float %4.51%
Short Ratio4.04
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)9.09%
PT rev (3m)9.09%
EPS NQ rev (1m)-111.81%
EPS NQ rev (3m)-112.4%
EPS NY rev (1m)-43.08%
EPS NY rev (3m)-49.43%
Revenue NQ rev (1m)-12.79%
Revenue NQ rev (3m)-12.31%
Revenue NY rev (1m)-7.03%
Revenue NY rev (3m)-7.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 17.51 | ||
| P/S | 0.9 | ||
| P/FCF | 7.79 | ||
| P/OCF | 6.02 | ||
| P/B | 3.55 | ||
| P/tB | 49.19 | ||
| EV/EBITDA | 5.98 |
EPS(TTM)1.33
EY6.7%
EPS(NY)1.13
Fwd EY5.71%
FCF(TTM)2.55
FCFY12.84%
OCF(TTM)3.3
OCFY16.62%
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 | 3.5 |
F-Score9
WACC8.91%
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%