Franklin Covey Company (FC) AI Stock Analysis

• Market Cap: $246.39M
• Dividend Yield: N/A
• Average Volume (3M): 138.66K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 1.01
• Revenue Growth: -0.40%
• EPS Growth: -40.98%
• Country: US
• Employees: 1,084
• Sector: Consumer Defensive
• Sector Strength: 41
• Industry: Consulting Services
• EPS (TTM): -0.11
• Shares Outstanding: 12,641,822
• 10 Day Avg. Volume: 185,309
• 30 Day Avg. Volume: 138,656
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 1.25
• Enterprise Value/Ebitda: 10.67
• 1Y Price Target: $28.13
• Price Target Upside: 44.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 69 Neutral
• Price Target: $21.50 ▲(10.31% Upside)

Franklin Covey's overall stock score reflects solid financial performance and positive corporate events, tempered by bearish technical indicators and valuation concerns. The mixed sentiment from the earnings call, with both positive strategic initiatives and revenue challenges, further influences the score.

Positive Factors

Strong Profitability Margins

High profitability margins indicate effective cost management, allowing the company to maintain financial health and invest in growth initiatives.

Leadership Change

The leadership change in the Enterprise Division is expected to strengthen market position and drive growth, leveraging Holly Procter's extensive experience.

Client Retention

Strong client retention reflects customer satisfaction and loyalty, ensuring a stable revenue base and potential for upselling additional services.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in maintaining sales momentum, potentially impacting long-term growth and financial stability.

Decreased Free Cash Flow

Reduced free cash flow limits the company's ability to invest in growth opportunities and manage financial obligations, affecting future flexibility.

Impact of Government Actions

Government-related disruptions pose risks to revenue stability, particularly in sectors reliant on public contracts, impacting long-term strategic planning.

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 generates revenue through multiple streams, primarily by offering training programs, workshops, and consulting services to businesses and organizations. Key revenue streams include fees from live and virtual training sessions, licensing of their proprietary content, and the sale of books and educational materials. The company also partners with various organizations and educational institutions to deliver its programs, which expands its reach and customer base. Additionally, Franklin Covey has developed subscription-based models for some of its resources, providing ongoing revenue from clients who seek continuous development and training solutions.

Franklin Covey Company Financial Statement Overview

Summary

Franklin Covey Company exhibits stable financial health with consistent revenue growth, strong profitability margins, and a robust balance sheet. However, recent revenue and free cash flow fluctuations present potential risks that require attention.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	287.23M	280.52M	262.84M	224.17M	198.46M
Gross Profit	221.07M	213.49M	201.91M	172.90M	145.37M
EBITDA	46.25M	39.98M	38.17M	23.82M	18.66M
Net Income	23.40M	17.78M	18.43M	13.62M	-9.44M
Balance Sheet
Total Assets	261.54M	245.92M	259.15M	249.65M	205.44M
Cash, Cash Equivalents and Short-Term Investments	48.66M	38.23M	60.52M	47.42M	27.14M
Total Debt	6.03M	15.33M	24.26M	32.86M	36.65M
Total Liabilities	178.40M	167.26M	176.34M	169.79M	145.98M
Stockholders Equity	83.14M	78.65M	82.81M	79.86M	59.45M
Cash Flow
Free Cash Flow	56.56M	22.19M	46.92M	42.07M	18.30M
Operating Cash Flow	60.26M	35.74M	52.25M	46.18M	27.56M
Investing Cash Flow	-11.31M	-13.55M	-5.33M	-14.31M	-11.87M
Financing Cash Flow	-38.66M	-44.18M	-32.67M	-11.48M	-16.56M

Franklin Covey Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FC, the sentiment is Neutral. The current price of 19.49 is above the 20-day moving average (MA) of 19.34, below the 50-day MA of 19.76, and below the 200-day MA of 26.81, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 50.66 is Neutral, neither overbought nor oversold. The STOCH value of 31.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FC.

Franklin Covey Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAI	78 Outperform	$1.31B	23.41	29.05%	0.99%	9.28%	44.19%
ICFI	72 Outperform	$1.82B	16.68	11.09%	0.57%	-0.47%	10.03%
FC	69 Neutral	$246.39M	24.04	15.47%	―	-0.40%	-40.98%
Sector *	62 Neutral	$20.56B	14.79	-3.30%	3.19%	1.94%	-8.41%
RGP	55 Neutral	$169.85M	―	-61.29%	8.17%	-12.87%	-1025.47%
FORR	48 Neutral	$191.02M	―	-44.74%	―	-9.11%	-6082.17%
AERT	39 Underperform	$29.53M	0.71	112.00%	―	-5.47%	-113.35%

Franklin Covey Company Corporate Events

Franklin Covey Announces Leadership Change in Enterprise Division

On August 5, 2025, Franklin Covey Co. announced changes to its executive leadership team. Jennifer C. Colosimo will step down as President of the Enterprise Division on August 31, 2025, after 24 years with the company, transitioning to a senior advisor role until the end of the year. Holly Procter will take over as President of the Enterprise Division starting September 1, 2025. Procter, who joined Franklin Covey in June 2024, brings extensive experience from various industries, including enterprise software and healthcare, and has held leadership roles at companies like LinkedIn and Incredible Health. Her appointment is expected to strengthen Franklin Covey’s market position and drive growth in its enterprise division.

Franklin Covey Reports Q3 2025 Financial Results

On June 18, 2025, Franklin Covey Company announced its financial results for the third quarter of fiscal 2025, ended May 31, 2025. The company reported consolidated revenue of $67.1 million, a decrease from the previous year’s $73.4 million. The Enterprise Division faced revenue declines due to macroeconomic uncertainties and geopolitical trade tensions. Despite a net loss of $1.4 million, the company exceeded its adjusted EBITDA guidance with $7.3 million. Franklin Covey maintained strong liquidity with over $95 million, including $33.7 million in cash, and updated its fiscal 2025 guidance, projecting total revenue between $265 million and $275 million. The company remains optimistic about future growth, with increased client retention and expansion in its subscription services.