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. With these ratings, FC could be worth investigating further 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.
FC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FC has a Return On Assets of 8.03%. This is in the better half of the industry: FC outperforms 73.49% of its industry peers.
FC has a better Return On Equity (24.52%) than 74.70% of its industry peers.
With an excellent Return On Invested Capital value of 23.17%, FC belongs to the best of the industry, outperforming 90.36% of the companies in the same industry.
FC had an Average Return On Invested Capital over the past 3 years of 20.39%. This is significantly above the industry average of 13.58%.
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 has a Profit Margin of 6.21%. This is in the better half of the industry: FC outperforms 66.27% of its industry peers.
In the last couple of years the Profit Margin of FC has grown nicely.
Looking at the Operating Margin, with a value of 10.12%, FC is in the better half of the industry, outperforming 75.90% of the companies in the same industry.
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 86.75% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FC is creating value.
FC has less shares outstanding than it did 1 year ago.
FC has less shares outstanding than it did 5 years ago.
FC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.50 indicates that FC is not in any danger for 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 72.29% 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.
The Debt to FCF ratio of FC (0.13) is better than 84.34% 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.
FC has a better Debt to Equity ratio (0.03) than 68.67% 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.
FC has a Current ratio of 0.90. This is in the lower half of the industry: FC underperforms 75.90% of its industry peers.
A Quick Ratio of 0.87 indicates that FC may have some problems paying its short term obligations.
The Quick ratio of FC (0.87) is worse than 77.11% 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.
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
Based on estimates for the next years, FC will show a very negative growth in Earnings Per Share. The EPS will decrease by -20.88% on average per year.
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
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 15.32, the valuation of FC can be described as correct.
Based on the Price/Earnings ratio, FC is valued a bit cheaper than the industry average as 63.86% of the companies are valued more expensively.
FC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
FC is valuated rather expensively with a Price/Forward Earnings ratio of 17.98.
FC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FC is cheaper than 60.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, FC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.32 | ||
| Fwd PE | 17.98 |
4.2 Price Multiples
FC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FC is cheaper than 89.16% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FC is valued cheaply inside the industry as 92.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8 | ||
| EV/EBITDA | 5.98 |
4.3 Compensation for Growth
FC has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as FC's earnings are expected to decrease with -20.88% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.37
+0.17 (+0.84%)
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 Cap264.61M
Analysts85.45
Price Target61.2 (200.44%)
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 | 15.32 | ||
| Fwd PE | 17.98 | ||
| P/S | 0.92 | ||
| P/FCF | 8 | ||
| P/OCF | 6.18 | ||
| P/B | 3.65 | ||
| P/tB | 50.51 | ||
| EV/EBITDA | 5.98 |
EPS(TTM)1.33
EY6.53%
EPS(NY)1.13
Fwd EY5.56%
FCF(TTM)2.55
FCFY12.51%
OCF(TTM)3.3
OCFY16.18%
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%