One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Franklin Covey Co.
FC · NYQ · Consumer Defensive · Education & Training Services
Current price
$17.95
52-week range
$11.16 - $26.81
Market cap
—
Balance sheet
Healthy
21.99x Strong cushion
Net cash $11.97M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Returns 4.0% on equity, ahead of 20% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 171.2% above its 5-year average P/E.
- Risk Operating margin compressed from 9.0% to 7.4% over 3 years.
What this company does
Franklin Covey Co.
Franklin Covey Co. helps businesses and people get better at things like leadership and getting work done by offering training and consulting. Most of their money comes from selling these training programs and materials, which helps them grow.
How the company got here
Franklin Covey Co. started in 1983 as Franklin Quest Co., focusing on personal productivity. A major turning point was its 1997 merger with Covey Leadership Center, led by Stephen Covey, author of the best-selling "The 7 Habits of Highly Effective People." This merger created Franklin Covey Co., combining Franklin's productivity tools with Covey's leadership principles. The company has since evolved to offer a broader range of training and consulting services aimed at improving organizational and individual performance worldwide.
What it actually does
Franklin Covey provides training and consulting services designed to help businesses and individuals become more effective. Think of them as a company that teaches people how to be better leaders, more productive workers, and more successful in their sales efforts. They offer programs based on well-known principles like "The 7 Habits of Highly Effective People" and "The Speed of Trust." These programs are delivered through live training, online platforms, and various materials.
North America
This segment is Franklin Covey's largest business, focusing on providing its training and consulting services within the United States and Canada. It's where the company directly engages with organizations and individuals to offer solutions for leadership development, execution, and productivity. This part of the business generates the majority of Franklin Covey's revenue, acting as its core market for its established programs and new offerings.
International Direct Offices
This segment involves Franklin Covey operating its own offices and delivering services directly to clients in various countries outside of North America. It's similar to the North America segment but focuses on expanding the company's reach globally through its own established presence. This allows them to adapt their training and consulting to local markets while maintaining direct control over service delivery.
International Licensees
Instead of opening its own offices, Franklin Covey partners with local businesses in many countries through a licensing model. These licensees pay to use Franklin Covey's content and methodologies to deliver training and consulting services in their respective regions. This is a way for the company to grow its international footprint without the direct investment required for company-owned offices, making it a significant contributor to overall revenue.
Education Division
This distinct part of Franklin Covey focuses specifically on the education sector, primarily through its "The Leader in Me" initiative. This program helps K-12 schools implement leadership principles and social-emotional learning into their culture and curriculum. It aims to empower students with life skills, fostering a more positive and effective learning environment, and represents a growing area of the company's business.
What management is betting on now
Franklin Covey's management is focused on expanding its "All Access Pass" subscription service, which provides ongoing access to a wide range of training content and tools. They are also emphasizing "The Leader in Me" initiative within their Education Division, aiming to grow its presence in schools globally. The company is also investing in digital solutions to make its training more accessible and scalable, believing these strategies will drive future growth and client engagement.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$20.80M
FY2025 Q1
$13.15M
FY2025 Q2
$-2.64M
FY2025 Q3
$4.48M
FY2025 Q4
$5.74M
FY2026 Q1
$-1.63M
FY2026 Q2
$15.22M
FY2026 Q3
$-32.00K
Revenue
$67.81M
Net income
$3.08M
Diluted EPS
0.27
Operating cash flow
$1.12M
Free cash flow
$-32.00K
Fetching…
Sources
Revenue
$59.65M
Net income
$-1.98M
Diluted EPS
-0.17
Operating cash flow
$16.25M
Free cash flow
$15.22M
Fetching…
Sources
Revenue
$64.05M
Net income
$-3.29M
Diluted EPS
-0.27
Operating cash flow
$98.00K
Free cash flow
$-1.63M
Fetching…
Sources
Revenue
$71.25M
Net income
$4.37M
Diluted EPS
0.34
Operating cash flow
$9.94M
Free cash flow
$5.74M
Fetching…
Sources
Revenue
$67.12M
Net income
$-1.41M
Diluted EPS
-0.11
Operating cash flow
$6.26M
Free cash flow
$4.48M
Fetching…
Sources
Revenue
$59.61M
Net income
$-1.08M
Diluted EPS
-0.08
Operating cash flow
$-1.37M
Free cash flow
$-2.64M
Fetching…
Sources
Revenue
$69.09M
Net income
$1.18M
Diluted EPS
0.09
Operating cash flow
$14.14M
Free cash flow
$13.15M
Fetching…
Sources
Revenue
$84.12M
Net income
$11.96M
Diluted EPS
0.89
Operating cash flow
$21.87M
Free cash flow
$20.80M
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $17.95
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $12.0M - more cash than debt. Interest coverage 22.0x.
Net debt
$-11.97M
Interest coverage
21.99x
Franklin Covey Co.'s profit covers its interest bill about 22.0 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
FC
BASELINE
Franklin Covey Co.
Total debt $0.00 Interest coverage 21.99x This is the baseline the peer rows are being compared against.
Total debt $574.57M Interest coverage -0.67x -100% vs FC This peer has almost no interest-payment cushion compared with FC.
Total debt $597.77M Interest coverage 18.74x -15% vs FC Has roughly the same debt cushion as FC.
Total debt $63.99M Interest coverage 0.73x -97% vs FC Carries about 30.3x less debt cushion than FC.
Total debt $153.47M Interest coverage 12.73x -42% vs FC Carries about 1.7x less debt cushion than FC.
Total debt $1.38B Interest coverage 6.75x -69% vs FC Carries about 3.3x less debt cushion than FC.
What you should know
The case for and against FC
2 Rewards
2 Risks
Rewards
-
Returns 4.0% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 171.2% above its 5-year average P/E.
-
Operating margin compressed from 9.0% to 7.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
119.67x
Forward P/E
12.78x
P/B
4.72x
P/S
—
EV/EBITDA
9.33x
PEG ratio
0.99x
Profitability
How much profit each dollar creates
Gross margin
75.2%
Operating margin
7.4%
Net margin
0.8%
ROE
4.0%
ROA
3.9%
Health
Liquidity and balance-sheet strength
Debt / equity
—
Current ratio
0.66x
Quick ratio
0.44x
Total debt
$0.00
Total cash
$11.97M
Growth
How the business has been compounding
Revenue TTM
$262.75M
Revenue 5Y CAGR
4.5%
EPS TTM
0.15
EPS 5Y CAGR
-42.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$27.41M
Free CF TTM
$20.72M
FCF margin
7.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
—