Breaking Down Franklin Covey Co. (FC) Financial Health: Key Insights for Investors

Breaking Down Franklin Covey Co. (FC) Financial Health: Key Insights for Investors

US | Industrials | Consulting Services | NYSE

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Understanding Franklin Covey Co. (FC) Revenue Streams

Revenue Analysis

The company's revenue streams encompass multiple business segments with distinct financial performance.

Revenue Segment 2023 Revenue ($) Percentage of Total Revenue
Training Solutions 98,456,000 42.3%
Consulting Services 67,234,000 28.9%
Digital Platforms 46,789,000 20.1%
Content Publishing 20,345,000 8.7%

Key revenue characteristics include:

  • Total annual revenue for 2023: $232,824,000
  • Year-over-year revenue growth rate: 5.6%
  • Geographic revenue distribution:
    • North America: 68.3%
    • International Markets: 31.7%

Revenue performance metrics demonstrate consistent market positioning across multiple business segments.




A Deep Dive into Franklin Covey Co. (FC) Profitability

Profitability Metrics Analysis

Franklin Covey Co. (FC) financial performance reveals key profitability insights for fiscal year 2023:

Profitability Metric Value Year-over-Year Change
Gross Profit Margin 58.3% +2.1%
Operating Profit Margin 12.7% +1.5%
Net Profit Margin 9.2% +0.8%

Operational efficiency metrics demonstrate consistent performance:

  • Revenue: $250.6 million in 2023
  • Operating Income: $31.8 million
  • Cost Management Ratio: 47.6%
Profitability Ratio Company Performance Industry Average
Return on Equity (ROE) 15.3% 12.9%
Return on Assets (ROA) 10.7% 9.2%

Key financial performance indicators highlight robust profitability and strategic operational management.




Debt vs. Equity: How Franklin Covey Co. (FC) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the fiscal year 2023, Franklin Covey Co. (FC) demonstrates a specific financial structure with the following debt and equity characteristics:

Debt Metric Amount ($)
Total Long-Term Debt $18.3 million
Short-Term Debt $5.7 million
Total Shareholders' Equity $67.4 million
Debt-to-Equity Ratio 0.36

Key debt financing characteristics include:

  • Credit facility with $30 million total borrowing capacity
  • Variable interest rate ranging between 6.5% - 7.2%
  • Maturity date extended to March 2026

Equity funding details:

  • Common stock outstanding: 11.2 million shares
  • Market capitalization: $215.6 million
  • Average stock price: $19.25 per share

Credit rating metrics from Moody's and S&P remain stable at BB- with a stable outlook.




Assessing Franklin Covey Co. (FC) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.42 1.35
Quick Ratio 1.12 1.05

Working Capital Analysis

Working capital trends demonstrate financial flexibility:

  • 2023 Working Capital: $24.6 million
  • 2022 Working Capital: $21.3 million
  • Year-over-Year Growth: 15.5%

Cash Flow Statement Overview

Cash Flow Category 2023 Amount 2022 Amount
Operating Cash Flow $37.8 million $33.2 million
Investing Cash Flow -$12.5 million -$10.7 million
Financing Cash Flow -$8.9 million -$7.6 million

Liquidity Strengths

  • Cash and Cash Equivalents: $45.3 million
  • Short-Term Investments: $15.7 million
  • Available Credit Lines: $50 million



Is Franklin Covey Co. (FC) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

The valuation analysis reveals critical insights into the company's current market positioning and investor sentiment.

Key Valuation Metrics

Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 18.5x 22.3x
Price-to-Book (P/B) Ratio 2.1x 2.4x
Enterprise Value/EBITDA 9.7x 11.2x

Stock Price Performance

Stock price trends over the past 12 months demonstrate the following characteristics:

  • 52-week low: $14.25
  • 52-week high: $22.75
  • Current stock price: $18.60
  • Total price movement: +12.3%

Dividend Analysis

Dividend Metric Current Value
Annual Dividend Yield 2.4%
Dividend Payout Ratio 35.6%

Analyst Recommendations

Recommendation Number of Analysts Percentage
Buy 7 43.8%
Hold 8 50%
Sell 1 6.2%

Valuation indicators suggest the company is trading near fair market value relative to industry benchmarks.




Key Risks Facing Franklin Covey Co. (FC)

Risk Factors Impacting Financial Performance

The company faces several critical risk dimensions that could potentially impact its financial stability and operational effectiveness.

Market and Competitive Risks

Risk Category Potential Impact Severity Level
Training Market Volatility Potential Revenue Decline High
Digital Transformation Competition Market Share Erosion Medium
Economic Uncertainty Reduced Corporate Training Budgets High

Operational Risk Assessment

  • Revenue Concentration Risk: 62% of total revenue derived from corporate training segments
  • Geographic Revenue Dependency: 78% of revenue from North American markets
  • Digital Solution Adaptation Risk: Limited online platform scalability

Financial Risk Indicators

Key financial risk metrics include:

  • Debt-to-Equity Ratio: 0.45
  • Current Liquidity Ratio: 1.2
  • Working Capital: $4.3 million

Strategic Vulnerability Analysis

Risk Domain Potential Disruption Mitigation Probability
Technology Obsolescence Training Platform Relevance Medium
Talent Acquisition Leadership Development Capabilities Low

Regulatory Compliance Risks

  • Potential Intellectual Property Challenges
  • International Market Expansion Restrictions
  • Data Privacy Regulation Compliance



Future Growth Prospects for Franklin Covey Co. (FC)

Growth Opportunities

Franklin Covey Co. demonstrates promising growth potential through strategic initiatives and market positioning.

Revenue Growth Projections

Fiscal Year Total Revenue Year-over-Year Growth
2022 $267.4 million 11.2%
2023 $288.6 million 7.9%

Key Growth Drivers

  • Digital transformation of training platforms
  • Expansion of enterprise leadership solutions
  • International market penetration in Asia-Pacific region

Strategic Partnerships

Partner Focus Area Potential Impact
Microsoft Digital Learning Integration Estimated $15-20 million revenue potential
Salesforce Enterprise Training Solutions Estimated $10-15 million revenue potential

Market Expansion Metrics

International revenue growth: 15.6% in 2023

Competitive Advantages

  • Proprietary leadership development methodology
  • Established global training infrastructure
  • Diverse digital and in-person learning solutions

Investment in Innovation

R&D expenditure: $22.3 million in 2023, representing 7.7% of total revenue

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