Franklin Covey Co (FC) stock analysis
Close on Nov 11, 2026Market cap $170.54MP/E 94.4Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak8 of 30 checks passed
Franklin Covey passes 8 of the 30 checks behind our score; 7 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 0/6
- Past performance
- 3/6
- Financial health
- 4/6
- Dividend
- 0/6
What stands out
Trading below fair value
The share price of $15.10 is below our fair value estimate of $17.85.
Return on capital over 10%
Return on invested capital was 10.2%, above the 10% that usually covers the cost of capital.
No debt
Franklin Covey has no borrowings on its latest balance sheet.
Interest well covered
Operating income covers interest expense 19.1 times.
What to watch
Margin of safety under 20%
The price is 15.4% below fair value, less than the 20% cushion we look for.
Return on equity under 15%
Return on equity was 4.0% over the last twelve months and averaged 19.5% over five years; we look for 15% on both.
Revenue growing under 10% a year
Revenue grew 0.5% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -42.6% a year over the last three fiscal years.
Valuation1/6
P/E above its 5-year median
Franklin Covey's P/E of 94.4 is above its own 5-year median of 32.2.
P/E above the industry
Franklin Covey's P/E of 94.4 is above the Management and Public Relations Services median of 21.9.
EV/EBITDA above its 5-year median
Franklin Covey's EV/EBITDA of 24.6 is above its 5-year median of 23.5.
P/B above the industry
Franklin Covey's price-to-book of 3.97 is above the Management and Public Relations Services median of 2.31.
Trading below fair value
The share price of $15.10 is below our fair value estimate of $17.85.
Margin of safety under 20%
The price is 15.4% below fair value, less than the 20% cushion we look for.
Growth0/6
Revenue growing under 10% a year
Revenue grew 0.5% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -42.6% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew -6.1% over the last twelve months; the Management and Public Relations Services median is 7.2%.
Guidance lowered
Franklin Covey lowered its fiscal 2026 Total revenue outlook on Jul 1, 2026.
Gross margin slipping
Gross margin was 75.2% over the last twelve months, against 77.0% a year earlier.
Past performance3/6
Return on equity under 15%
Return on equity was 4.0% over the last twelve months and averaged 19.5% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 10.2%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Franklin Covey's return on equity of 4.0% is above the Management and Public Relations Services median of 0.4%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin below its 5-year average
Net margin was 0.8% over the last twelve months, against a 5-year average of 5.7%.
Net margin above the industry
Franklin Covey's net margin of 0.8% is above the Management and Public Relations Services median of 0.2%.
Financial health4/6
No debt
Franklin Covey has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
Operating income covers interest expense 19.1 times.
Short-term assets don't cover short-term debts
Current assets are 0.66 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.68; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Franklin Covey has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$17.85
The share price is 15% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/Eleft out, too far from the others | 27.1× | 32.2× | 21.9× | $4.33 | – |
| EV/EBITDA | 18.2× | 23.5× | 12.9× | $11.45 | 58% |
| P/B | 4.7× | 7.0× | 2.3× | $17.83 | 17% |
| Earnings power | 9.8% cost of equity | – | – | $32.79 | 25% |
| Fair value | $17.85 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 32.2
- Management and Public Relations Services median 21.9
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
High risk
- Average value traded per day
- $1.08M
- Value traded per 1% price move
- $611.00K
Downside
High risk
- Typical loss in a bad month
- 37.0%
- Volatility (annualized)
- 63%
- Sharpe ratio, 1 year
- -0.05
- Beta to the S&P 500 (5Y)
- 0.98
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2012 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -2.1% | -2.3% | +3.1% | +2.7% | |
| Gross profit | -3.7% | -2.8% | +2.5% | +3.8% | |
| Operating income | +25.6% | -35.2% | -2.4% | -6.4% | |
| Net income | +60.5% | -34.8% | -18.4% | -3.5% | |
| EPS, diluted | +75.0% | -30.3% | -15.2% | -1.1% | |
| Free cash flow | -21.8% | -19.6% | -18.3% | -5.5% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | -8.0% | 19.6% | 8.3% | |
| Return on assets | -3.6% | 6.0% | 2.1% | |
| Current ratio | 1.14 | 1.00 | 0.74 | |
| Debt to equity | – | 0.16 | – | |
| Interest coverage | -3.7× | 3.9× | 23.1× | |
| Inventory turnover | 15.3× | 18.7× | 11.9× | |
| Capex to revenue | 3.9% | 0.7% | 2.1% | |
| Diluted shares | 14M | 14M | 12M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Franklin Covey generated $198.81M from operations and spent $169.67M on capital expenditure, dividends and share buybacks. 15% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 1.9% | 1.13× | 3.90× | 8.3% |
| FY2025 | 1.1% | 1.06× | 3.36× | 4.1% |
| FY2024 | 8.1% | 1.13× | 3.14× | 28.9% |
| FY2023 | 6.3% | 1.11× | 3.13× | 22.0% |
| FY2022 | 7.0% | 1.03× | 3.13× | 22.7% |
| FY2021 | 6.1% | 0.99× | 3.27× | 19.6% |
| FY2020 | -4.8% | 0.92× | 3.04× | -13.3% |
| FY2019 | -0.5% | 1.03× | 2.70× | -1.3% |
| FY2018 | -2.8% | 0.99× | 2.56× | -7.1% |
| FY2017 | -3.9% | 0.92× | 2.25× | -8.0% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$4.92M
- Cash generatingOperating cash flow above zero$21.59M
- Return on assets improvedROA up on the prior year1.2% → 2.0%
- Earnings backed by cashOperating cash flow above net income$21.59M vs $4.92M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose0.82 → 0.74
- No dilutionShare count did not rise13M → 12M
- Gross margin improvedGross margin up on the prior year76.22% → 74.98%
- More efficientAsset turnover rose1.02 → 1.08
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