Franklin Covey Co

Consumer Discretionary
Other Consumer Services
www.franklincovey.com

Earnings Score
Moat Score
Safety Score

Market Cap $482.37M
PE 21
Debt $835.00K
Cash $48.66M
EV $434.54M
FCF $56.56M

Earnings

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Sales & Net Margins

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Earnings	$23.40M
EBIT	$33.05M
ROE	28%
ROA	13%
FCF	$56.56M
Equity	$83.14M
Growth Stability	-161%
PE	20.61
PEG	0.88
PB	5.8
P/FCF	8.53
P/S	1.68
Price/Cash	0.1
Debt/Equity	0.01
Debt/FCF	0.01
Net Margins	8%
Gross Margins	77%
Op. Margins	12%
Earnings CAGR	7%
Sales Growth YoY	8%
Sales Growth QoQ	15%
Sales CAGR	5%
FCF CAGR	16%
Equity CAGR	-4%
Earnings Stability	0.25
Earnings Growth YoY	76%
Earnings Growth QoQ	109%

Earnings CAGR 5Y	23%
Sales CAGR 5Y	9%
FCF CAGR 5Y	14%
Equity CAGR 5Y	4%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	2%
Equity CAGR 3Y	-4%
Market Cap	$482.37M
Revenue	$287.23M
Assets	$261.54M
Total Debt	$835.00K
Cash	$48.66M
Shares Outstanding	13.15M
EV	434.54M
Earnings Score	11%
Moat Score	93%
Safety Score	67%
Final Score	57%
Working Capital	-2.2M
Current Ratio	0.99
Gross Profit	$221.07M
Shares Growth 3y	-3%
Equity Growth QoQ	15%
Equity Growth YoY	6%

Assets & ROA

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Stockholders Equity & ROE

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Franklin Covey Co is a global company focused on organizational performance improvement. It focuses on providing time management and effectiveness training for individuals and corporations via online training as well as in-person workshops and events. The company provides training and consulting services in the areas of leadership, execution, productivity, trust, sales performance, customer loyalty, and educational improvement. It operates in the business segments of Direct Offices, Education practice and International Licensees. The company derives revenue from providing training and consulting services, and through the selling of books, audio media, and other related products. It has a business presence in the United States and other international countries.

SEC Filings

Direct access to Franklin Covey Co (FC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Aug 31
- 10-Q May 31
- 10-Q Feb 29
2023
- 10-Q Nov 30
- 10-K Aug 31
- 10-Q May 31
- 10-Q Feb 28
2022
- 10-Q Nov 30
- 10-K Aug 31
- 10-Q May 31
- 10-Q Feb 28

Sector Comparison

How does Franklin Covey Co compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Franklin Covey Co compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 7%

Stability 25%

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Franklin Covey Co Discounted Cash Flow

Fully customizable DCF calculator online for Franklin Covey Co.

Years

Calculation mode

= $1.8B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$57M	$66M	$76M	$89M	$103M	$120M	$139M	$162M	$188M	$219M	$254M	$2.5B
DCF		$60M	$63M	$67M	$70M	$74M	$79M	$83M	$88M	$93M	$98M	$980M
Value	$1.8B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	08/2015	08/2016	08/2017	08/2018	08/2019	08/2020	08/2021	08/2022	08/2023	08/2024	TTM
Net Margins	5%	4%	-4%	-3%	-0%	-5%	6%	7%	6%	8%	8%
ROA	-	7%	-4%	-2%	1%	1%	3%	9%	11%	13%	13%
ROE	-	7%	-8%	-7%	-1%	-16%	17%	22%	23%	28%	28%

Net Margins (8.15%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	08/2015	08/2016	08/2017	08/2018	08/2019	08/2020	08/2021	08/2022	08/2023	08/2024	TTM
Debt over FCF	-	0.86	2.26	2.84	0.82	0.81	0.55	0.12	0.19	0.01	0.01
Debt over Equity	0.22	0.26	0.27	0.36	0.26	0.32	0.31	0.07	0.07	0.01	0.01
Growth Stability	-	-	-	-161%	-	-	-	100%	100%	100%	-161%

Good Debt/FCF ratio (0.01)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.01)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-161%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	08/2015	08/2016	08/2017	08/2018	08/2019	08/2020	08/2021	08/2022	08/2023	08/2024	CAGR 5Y
Revenue YoY growth	-	-5%	-7%	13%	7%	-12%	13%	17%	7%	2%	9%
Earnings YoY growth	-	-37%	-202%	-18%	-83%	822%	-244%	35%	-4%	32%	23%
Equity YoY growth	-	-25%	-9%	-5%	2%	-28%	34%	4%	-5%	6%	4%
FCF YoY growth	-	21%	-65%	2%	155%	-11%	91%	10%	-36%	81%	14%