Franklin Covey Company Common Stock (FC)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses, conservative balance sheets, and a price that leaves room for error. Franklin Covey has a recognizable brand in leadership training and a global licensee network, but the filed numbers do not yet show a wide moat. In fiscal 2025, the year ended 2025-08-31, revenue was $267.1 million, down from $287.2 million in fiscal 2024, while net income fell to $3.1 million from $23.4 million. Diluted EPS dropped to $0.24 from $1.74. The latest filed quarter, fiscal Q3 2026 ended 2026-05-31, showed revenue of $67.8 million and net income of $3.1 million, better than the fiscal Q3 2025 net loss of $1.4 million, but one quarter does not reverse the trend. FairStock's computed Lynch category calls it a shrinking slow grower, with profit declining about 31.1% a year over four years and revenue growth of 4.5%. Returns on capital are weak: FairStock calculates ROE of 4.03% and ROCE of 3.86%. The balance sheet is a bright spot, with D/E of 0.02, and trailing free cash flow is $10.0 million, a 4.8% FCF yield. But at the 2026-10-13 close of $18.62, FairStock calculates a P/E of 124.13, P/B of 4.90, and a Graham Number of $3.58, implying a negative margin of safety of 420.11%. FairStock calculates EV/EBITDA of 13.05 and Piotroski of 5/9. The stock may price in a recovery that annual results have not confirmed. I want evidence of durable revenue growth and normalized earnings before calling this a bargain.

In plain English: Franklin Covey sells training and consulting services that help organizations and people improve leadership, productivity, and sales. The company carries little debt and produces some free cash, but its profits have shrunk sharply and its returns on money invested are low. At $18.62 on 2026-10-13, the shares look expensive relative to the company's earnings and asset value, even though they sit below the 52-week high.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-05-31) · fiscal Q2 2026 10-Q (period ended 2026-02-28) · fiscal Q1 2026 10-Q (period ended 2025-11-30) · fiscal Q3 2025 10-Q (period ended 2025-05-31) · FY2025 10-K (period ended 2025-08-31) · FY2024 10-K (period ended 2024-08-31) · FY2023 10-K (period ended 2023-08-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer