Franklin Covey Company (FC) AI Stock Analysis

• Market Cap: $204.79M
• Dividend Yield: N/A
• Average Volume (3M): 132.68K
• Price to Earnings (P/E): 71.3
• Beta (1Y): 1.23
• Revenue Growth: -7.02%
• EPS Growth: -86.27%
• Country: US
• Employees: 1,084
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Consulting Services
• EPS (TTM): 0.34
• Shares Outstanding: 11,989,951
• 10 Day Avg. Volume: 104,883
• 30 Day Avg. Volume: 132,684
• PEG Ratio: -0.95
• Price to Book (P/B): 3.78
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 12.20
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 1.11
• Enterprise Value/Ebitda: 14.69
• 1Y Price Target: $27.33
• Price Target Upside: 60.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $16.00 ▼(-6.32% Downside)

Franklin Covey's overall stock score reflects a challenging financial performance with bearish technical indicators. While the earnings call provided a positive outlook for future growth, current valuation concerns and liquidity risks weigh on the score. Strategic investments and AI integration are promising but need to translate into tangible financial improvements.

Positive Factors

AI Integration

AI integration can significantly enhance product offerings, improve client outcomes, and create a competitive edge, supporting long-term growth.

Education Business Growth

Growth in the education segment indicates strong demand and a solid foundation for future revenue expansion, contributing to stable long-term performance.

Strategic Investments

Strategic investments are enhancing client engagement and service attachment rates, which can lead to sustained revenue growth and market positioning.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in market demand or competitive pressures, potentially impacting long-term financial health if not addressed.

Decreased Client Revenue Retention

Reduced client revenue retention suggests customer dissatisfaction or budget constraints, which can hinder long-term revenue stability and growth.

Macroeconomic Impact

Macroeconomic challenges, such as tariffs and spending cuts, can create headwinds for growth and profitability, affecting long-term strategic execution.

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 several key channels. Its primary revenue streams include corporate training programs, workshops, and consulting services, which cater to organizations seeking to improve employee performance and leadership skills. Additionally, the company earns income from the sale of books, online courses, and digital learning resources. FC has established significant partnerships with various corporations and educational institutions that facilitate the delivery of its training programs. Furthermore, the company offers subscription-based access to its digital learning platforms, which provides a recurring revenue model. By diversifying its offerings and leveraging its intellectual property, Franklin Covey effectively capitalizes on the growing demand for personal and professional development solutions.

Franklin Covey Company Financial Statement Overview

Summary

Franklin Covey Company shows a mixed financial performance. Strong gross margins and a solid balance sheet with low leverage are positive indicators. However, challenges in revenue growth and profitability, along with a decline in free cash flow growth, pose potential liquidity risks.

Income Statement

Franklin Covey Company has shown a mixed performance in its income statement. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin has declined significantly from the previous year, reflecting challenges in maintaining profitability. The revenue growth rate has turned negative, suggesting a contraction in sales. Despite these challenges, the company maintains a positive EBIT and EBITDA margin, though both have decreased compared to the prior year.

Balance Sheet

The balance sheet of Franklin Covey Company is relatively strong, with a low debt-to-equity ratio indicating prudent financial leverage. The return on equity has decreased but remains positive, suggesting that the company is still generating returns for its shareholders. The equity ratio is stable, reflecting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement reveals some concerns, with a significant decline in free cash flow growth. The operating cash flow to net income ratio indicates that cash generation from operations is lower relative to net income, which could impact liquidity. However, the free cash flow to net income ratio remains healthy, suggesting that the company is still able to convert a substantial portion of its earnings into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	267.07M	267.07M	287.23M	280.52M	262.84M	224.17M
Gross Profit	203.57M	203.57M	221.07M	213.49M	201.91M	172.90M
EBITDA	15.39M	14.43M	46.25M	39.98M	38.17M	23.82M
Net Income	3.07M	3.07M	23.40M	17.78M	18.43M	13.62M
Balance Sheet
Total Assets	242.91M	242.91M	261.54M	245.92M	259.15M	249.65M
Cash, Cash Equivalents and Short-Term Investments	31.70M	31.70M	48.66M	38.23M	60.52M	47.42M
Total Debt	823.00K	823.00K	6.03M	15.33M	24.26M	32.86M
Total Liabilities	176.00M	176.00M	178.40M	167.26M	176.34M	169.79M
Stockholders Equity	66.91M	66.91M	83.14M	78.65M	82.81M	79.86M
Cash Flow
Free Cash Flow	18.06M	12.09M	56.56M	22.19M	46.92M	42.07M
Operating Cash Flow	28.98M	28.98M	60.26M	35.74M	52.25M	46.18M
Investing Cash Flow	-16.89M	-16.89M	-11.31M	-13.55M	-5.33M	-14.31M
Financing Cash Flow	-25.61M	-28.78M	-38.66M	-44.18M	-32.67M	-11.48M

Franklin Covey Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FC, the sentiment is Positive. The current price of 17.08 is above the 20-day moving average (MA) of 16.40, above the 50-day MA of 16.41, and below the 200-day MA of 20.17, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 59.85 is Neutral, neither overbought nor oversold. The STOCH value of 80.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$1.35B	24.80	27.83%	0.97%	8.69%	34.58%
HURN	75 Outperform	$3.11B	30.28	21.20%	―	12.50%	29.40%
ICFI	74 Outperform	$1.59B	16.24	9.88%	0.65%	-3.81%	-7.05%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
FC	59 Neutral	$204.79M	71.26	4.09%	―	-7.02%	-86.27%
RGP	51 Neutral	$175.63M	-0.92	-61.44%	6.74%	-10.83%	-1669.11%
FORR	42 Neutral	$137.77M	-1.61	-43.39%	―	-8.73%	-1168.15%

Franklin Covey Company Corporate Events

Franklin Covey Reports Q4 2025 Financial Results

On October 22, 2025, Franklin Covey Co. announced its financial results for the fourth quarter and fiscal year 2025, reporting consolidated revenue of $71.2 million for Q4 and $267.1 million for the full fiscal year, both within guidance ranges. The company experienced a decrease in Enterprise Division revenue due to macroeconomic uncertainties and geopolitical trade tensions, while the Education Division remained stable. Despite these challenges, Franklin Covey completed a go-to-market transformation and anticipates strong growth in fiscal 2026, with a focus on expanding its client base and increasing services bookings.

Franklin Covey Schedules Q4 2025 Earnings Call

Franklin Covey Co. announced that its conference call to review the fourth quarter and fiscal year 2025 financial results will occur on November 5, 2025, at 5:00 p.m. ET. The financial results will be released after the market closes on the same day, with interested parties able to access the live webcast or participate via telephone.