Franklin Covey Company (FC) AI Stock Analysis

• Market Cap: $293.13M
• Dividend Yield: N/A
• Average Volume (3M): 74.56K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.99
• Revenue Growth: 2.53%
• EPS Growth: 5.95%
• Country: US
• Employees: 1,084
• Sector: Industrials
• Sector Strength: 84
• Industry: Consulting Services
• EPS (TTM): -0.08
• Shares Outstanding: 12,987,725
• 10 Day Avg. Volume: 77,858
• 30 Day Avg. Volume: 74,563
• PEG Ratio: 0.00
• Price to Book (P/B): 7.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.23
• Enterprise Value/Market Cap: 2.17
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 2.92
• Enterprise Value/Ebitda: 3.99
• 1Y Price Target: $32.50
• Price Target Upside: 43.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: $24.50 ▲(8.46%Upside)

Franklin Covey Company demonstrates a solid financial foundation with stable financial performance and reasonable valuation. However, technical indicators and mixed sentiment from the earnings call, due to external challenges, moderate the overall score.

Positive Factors

Investment Recommendation

Analyst's recommendation is OUTPERFORM with a 12-month price target of $35, representing more than 50% upside from current levels.

Revenue Growth

Franklin Covey's new go-to-market North American Enterprise Division sales force transformation is complete and tracking ahead of expectations, which is expected to drive significant acceleration of the company's overall revenue growth.

Valuation

Franklin Covey’s shares are trading at a discount to its Ed Tech peer group, indicating potential value for investors.

Negative Factors

EBITDA Decline

Adjusted EBITDA decreased 72.3% to $2.1 million, aligning with expectations but reflecting significant decline.

Guidance Reduction

Management lowered its full-year guidance, attributing the majority of the difference from its original plan to $15 million less revenue from its direct government business, international business, education business, and U.S./Canada commercial business.

Revenue Decrease

Revenue decreased 2.8% to $59.6 million, below the FactSet consensus of $62.7 million.

Franklin Covey Company Business Overview & Revenue Model

Company Description

Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through three segments: Direct Offices, International Licensees, and Education Practice. It also provides a suite of individual-effectiveness and leadership-development training and products. The company was incorporated in 1983 and is headquartered in Salt Lake City, Utah.

How the Company Makes Money

Franklin Covey Company makes money primarily through the sale of its training and consulting services, as well as through the licensing of its content and intellectual property. The company generates revenue by offering workshops, seminars, and digital learning solutions to organizations across various industries. Key revenue streams include corporate training programs, public workshops, and online courses. Franklin Covey also partners with educational institutions and other organizations to expand its reach and impact, which contributes to its earnings. The company's ability to customize its solutions to meet specific client needs is a significant factor in its revenue generation.

Franklin Covey Company Financial Statement Overview

Summary

Franklin Covey Company shows stable financial performance with consistent revenue growth and strong profitability margins. The balance sheet is robust with low leverage, and cash flow management is positive. However, recent fluctuations in revenue and free cash flow pose potential risks.

Income Statement

Franklin Covey Company demonstrates a stable financial performance with consistent revenue growth from 2021 to 2025. The Gross Profit Margin remains strong, averaging around 75%, while the Net Profit Margin shows improvement, reaching 6.2% in TTM. However, there is a slight decline in total revenue in the latest TTM period, indicating a potential risk if this trend continues.

Balance Sheet

The company's balance sheet is robust with a low Debt-to-Equity Ratio of 0.02 in TTM, indicating low leverage. The Equity Ratio is healthy at 32.8%, showcasing a stable financial structure. Return on Equity has improved, reflecting efficient management of shareholder funds despite a decrease in stockholders' equity.

Cash Flow

The cash flow statement reveals strong operational cash generation with a healthy Operating Cash Flow to Net Income Ratio. Free Cash Flow has shown volatility, decreasing in the most recent TTM period, which may impact financial flexibility. The consistent operating cash flow is a positive indicator of the company's ability to sustain operations.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	286.19M	287.23M	280.52M	262.84M	224.17M	198.46M
Gross Profit	218.35M	221.07M	213.49M	201.91M	172.90M	145.37M
EBITDA	34.53M	43.08M	39.98M	38.17M	23.82M	18.66M
Net Income	17.78M	23.40M	17.78M	18.43M	13.62M	-9.44M
Balance Sheet
Total Assets	221.34M	261.54M	245.92M	259.15M	249.65M	205.44M
Cash, Cash Equivalents and Short-Term Investments	40.39M	48.66M	38.23M	60.52M	47.42M	27.14M
Total Debt	4.15M	6.03M	15.33M	24.26M	32.86M	36.65M
Total Liabilities	148.81M	178.40M	167.26M	176.34M	169.79M	145.98M
Stockholders Equity	72.53M	83.14M	78.65M	82.81M	79.86M	59.45M
Cash Flow
Free Cash Flow	33.78M	56.56M	22.19M	46.92M	42.07M	18.30M
Operating Cash Flow	42.82M	60.26M	35.74M	52.25M	46.18M	27.56M
Investing Cash Flow	-10.80M	-11.31M	-13.55M	-5.33M	-14.31M	-11.87M
Financing Cash Flow	-32.59M	-38.66M	-44.18M	-32.67M	-11.48M	-16.56M

Franklin Covey Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.59
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FC, the sentiment is Negative. The current price of 22.59 is below the 20-day moving average (MA) of 22.82, above the 50-day MA of 22.07, and below the 200-day MA of 32.15, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 48.33 is Neutral, neither overbought nor oversold. The STOCH value of 58.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FC.

Franklin Covey Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAI	76 Outperform	$1.28B	24.69	23.18%	1.04%	8.49%	21.06%
FC	68 Neutral	$293.13M	17.31	24.81%	―	2.53%	5.95%
ICFI	68 Neutral	$1.54B	14.40	11.64%	0.67%	1.95%	17.98%
Sector *	59 Neutral	AU$1.66B	9.68	11.29%	3.77%	6.45%	5.22%
AERT	57 Neutral	$47.23M	0.66	112.00%	―	34.17%	―
FORR	53 Neutral	$184.15M	―	-45.64%	―	-9.61%	-18170.36%
RGP	49 Neutral	$173.28M	―	-31.18%	5.24%	-16.27%	-589.83%

Franklin Covey Company Corporate Events

Franklin Covey Announces New CFO and Leadership Changes

On April 16, 2025, Franklin Covey Company announced changes in its executive financial leadership. Stephen D. Young will retire as Chief Financial Officer effective May 1, 2025, after 24 years of service, transitioning to a senior advisor role until August 31, 2025. Jessica Betjemann will succeed him as CFO, bringing over 30 years of financial experience, including her recent role as CFO of Gogo, Inc. Additionally, A. Derek Hatch will be appointed as Chief Accounting Officer, Controller, and Treasurer, effective the same date, continuing his long tenure with the company.

Franklin Covey Reports Q2 Fiscal 2025 Financial Results

Franklin Covey Co. reported its financial results for the second quarter of fiscal 2025, which ended on February 28, 2025. The company experienced a decrease in consolidated revenue to $59.6 million from $61.3 million in the previous year, with the Enterprise Division facing challenges due to canceled government contracts and economic uncertainties. However, the Education Division saw a 3% increase in revenue. Despite a net loss of $1.1 million, Franklin Covey is optimistic about its new go-to-market and sales force strategy in North America, which has already shown positive results in client expansion and new logo acquisition.