Franklin Covey Co.
Franklin Covey Co. Fundamental Analysis
Franklin Covey Co. (FC) shows weak financial fundamentals with a PE ratio of -120.18, profit margin of -0.54%, and ROE of -2.17%. The company generates $0.3B in annual revenue with weak year-over-year growth of -7.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 14.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FC's fundamental strength across five key dimensions:
Efficiency Score
WeakFC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFC trades at attractive valuation levels.
Growth Score
WeakFC faces weak or negative growth trends.
Financial Health Score
ModerateFC shows balanced financial health with some risks.
Profitability Score
WeakFC struggles to sustain strong margins.
Key Financial Metrics
Is FC Expensive or Cheap?
P/E Ratio
FC trades at -120.18 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FC's PEG of 0.83 indicates potential undervaluation.
Price to Book
The market values Franklin Covey Co. at 3.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.04 times EBITDA. This signals the market has high growth expectations.
How Well Does FC Make Money?
Net Profit Margin
For every $100 in sales, Franklin Covey Co. keeps $-0.54 as profit after all expenses.
Operating Margin
Core operations generate 1.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.17 in profit for every $100 of shareholder equity.
ROA
Franklin Covey Co. generates $-0.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Franklin Covey Co. generates limited operating cash flow of $14.66M, signaling weaker underlying cash strength.
Free Cash Flow
Franklin Covey Co. generates weak or negative free cash flow of $3.23M, restricting financial flexibility.
FCF Per Share
Each share generates $0.27 in free cash annually.
FCF Yield
FC converts 2.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-120.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.02
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How FC Stacks Against Its Sector Peers
| Metric | FC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -120.18 | 26.71 | Better (Cheaper) |
| ROE | -2.17% | 1311.00% | Weak |
| Net Margin | -0.54% | -29317.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 0.73 | 10.53 | Weak Liquidity |
| ROA | -0.63% | -1537638.00% (disorted) | Weak |
FC outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Franklin Covey Co.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.62%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
134.94%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
12.98%
Industry Style: Cyclical, Value, Infrastructure
High Growth