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. FC gets an excellent profitability rating and is at the same time showing great financial health properties. FC has a correct valuation and a medium 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.
FC had a positive operating cash flow in the past year.
FC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years FC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 8.03%, FC is doing good in the industry, outperforming 75.61% of the companies in the same industry.
Looking at the Return On Equity, with a value of 24.52%, FC is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
FC has a better Return On Invested Capital (23.17%) than 95.12% 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 12.78%.
The last Return On Invested Capital (23.17%) for FC is above the 3 year average (20.39%), which is a sign of increasing profitability.
| 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 69.51% of its industry peers.
In the last couple of years the Profit Margin of FC has grown nicely.
FC has a Operating Margin of 10.12%. This is in the better half of the industry: FC outperforms 74.39% of its industry peers.
FC's Operating Margin has improved in the last couple of years.
FC's Gross Margin of 77.01% is amongst the best of the industry. FC outperforms 87.80% of its industry peers.
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.
The number of shares outstanding for FC has been reduced compared to 1 year ago.
Compared to 5 years ago, FC has less shares outstanding
Compared to 1 year ago, FC has an improved debt to assets ratio.
2.2 Solvency
FC has an Altman-Z score of 3.66. This indicates that FC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.66, FC is doing good in the industry, outperforming 69.51% 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 86.59% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that FC is not too dependend on debt financing.
FC's Debt to Equity ratio of 0.03 is fine compared to the rest of the industry. FC outperforms 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 3.66 |
ROIC/WACC2.58
WACC8.99%
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 78.05% of its industry peers.
A Quick Ratio of 0.87 indicates that FC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, FC is doing worse than 80.49% of the companies in the same industry.
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.
The Earnings Per Share has been growing by 23.11% on average over the past years. This is a very strong growth
FC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.53%.
The Revenue has been growing slightly by 4.97% on average over the past years.
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
FC is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -20.88% yearly.
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
Based on the Price/Earnings ratio of 17.58, the valuation of FC can be described as rather expensive.
62.20% 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 26.25, FC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 20.64, FC is valued on the expensive side.
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 (22.15), we can say FC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 20.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FC is valued cheaply inside the industry as 86.59% of the companies are valued more expensively.
90.24% 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 | 9.18 | ||
| EV/EBITDA | 7 |
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 |
23.38
-0.31 (-1.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners78.03%
Inst Owner Change4.35%
Ins Owners15.33%
Ins Owner Change-1.47%
Market Cap303.71M
Analysts85.45
Price Target42.5 (81.78%)
Short Float %8.78%
Short Ratio6.28
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)0%
PT rev (3m)-24.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-112.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-43.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-13.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 20.64 | ||
| P/S | 1.06 | ||
| P/FCF | 9.18 | ||
| P/OCF | 7.09 | ||
| P/B | 4.19 | ||
| P/tB | 57.97 | ||
| EV/EBITDA | 7 |
EPS(TTM)1.33
EY5.69%
EPS(NY)1.13
Fwd EY4.85%
FCF(TTM)2.55
FCFY10.9%
OCF(TTM)3.3
OCFY14.1%
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 | 3.66 |
F-Score9
WACC8.99%
ROIC/WACC2.58
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%