Franklin Covey Co.'s Exceptional Capital Efficiency Outshines Peers

Franklin Covey Co. (NYSE:FC) is a global company specializing in organizational performance improvement. It offers training and consulting services to help businesses enhance productivity and leadership. In the competitive landscape, Franklin Covey stands out with its impressive financial metrics, particularly in terms of Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC).

Franklin Covey Co. boasts a ROIC of 45.44% and a WACC of 10.07%, resulting in a ROIC to WACC ratio of 4.51. This indicates that the company is generating returns significantly above its cost of capital, showcasing efficient capital utilization. Such a strong ratio reflects the company's ability to manage its investments effectively and generate substantial returns.

In comparison, Forestar Group Inc. (FOR) leads the peer group with a remarkable ROIC of 122.97% and a WACC of 8.57%, resulting in a ROIC to WACC ratio of 14.36. This highlights Forestar's exceptional efficiency in generating returns well above its cost of capital. Despite this, Franklin Covey's performance remains commendable within its industry.

CRA International, Inc. (CRAI) presents a ROIC of 15.57% and a WACC of 8.61%, leading to a ROIC to WACC ratio of 1.81. While CRAI generates returns above its cost of capital, it does not match the efficiency of Franklin Covey. Similarly, Alamo Group Inc. (ALG) and Thermon Group Holdings, Inc. (THR) show modest ROIC to WACC ratios of 1.12 and 1.08, respectively, indicating returns slightly above their cost of capital.

Forrester Research, Inc. (FORR) faces challenges with a negative ROIC of -7.08% against a WACC of 6.97%, resulting in a ROIC to WACC ratio of -1.02. This suggests inefficiencies in capital utilization, contrasting sharply with Franklin Covey's robust financial performance. Franklin Covey's ability to generate returns well above its cost of capital underscores its effective capital management and solid return on investments.

• Franklin Covey Co. (NYSE:FC) reported an earnings per share (EPS) of -$0.082, surpassing the estimated EPS of -$0.11, marking an earnings surprise of 27.27%.
• The company's revenue was approximately $59.6 million, missing the estimated $62.65 million by 4.96%.
• FC's financial health indicators include a low debt-to-equity ratio of 0.023 and an earnings yield of approximately 4.87%.

Franklin Covey Co. (NYSE:FC) is a key player in the organizational performance improvement sector. The company specializes in providing subscription-based content, training, and tools designed to drive systemic changes in human behavior. FC operates within the Zacks Consulting Services industry, competing with other firms that offer similar consulting and training services.

On April 2, 2025, FC reported its earnings, revealing an earnings per share (EPS) of -$0.082, which was better than the estimated EPS of -$0.11. This result represents an earnings surprise of 27.27%, as highlighted by Zacks. However, it marks a decline from the $0.06 per share reported in the same quarter last year, indicating a challenging period for the company.

In terms of revenue, FC generated approximately $59.6 million, falling short of the estimated $62.65 million by 4.96%. This is a decrease from the $61.34 million reported in the same quarter the previous year. Despite this shortfall, FC has managed to surpass consensus revenue estimates twice in the last four quarters, demonstrating some resilience in its financial performance.

FC's financial metrics provide further insight into its current standing. The company has a price-to-earnings (P/E) ratio of approximately 20.55, indicating investor expectations of future earnings growth. Its price-to-sales ratio is about 1.29, while the enterprise value to sales ratio is around 1.15, suggesting a relatively balanced valuation in relation to its sales.

The company's financial health is underscored by a low debt-to-equity ratio of 0.023, indicating minimal reliance on debt financing. However, its current ratio of approximately 0.90 suggests potential liquidity challenges in meeting short-term obligations. Despite these challenges, FC maintains an earnings yield of about 4.87%, reflecting its ability to generate earnings relative to its share price.

• Franklin Covey Co. (NYSE:FC) showcases a high Return on Invested Capital (ROIC) of 36.27%, indicating efficient capital utilization.
• Compared to its peers, Franklin Covey Co. has a significantly higher ROIC to WACC ratio of 3.63, suggesting superior value generation from its investments.
• Forestar Group Inc. (FOR) leads the peer group with an exceptional ROIC to WACC ratio of 13.83, highlighting its outstanding capital efficiency and growth potential.

Franklin Covey Co. (NYSE:FC) is a global company specializing in performance improvement. It offers training and consulting services to help organizations and individuals achieve better results. The company operates in a competitive landscape with peers like CRA International, Thermon Group Holdings, Forrester Research, Forestar Group, and Alamo Group. These companies also focus on various aspects of business improvement and consulting.

Franklin Covey Co. boasts a Return on Invested Capital (ROIC) of 36.27%, significantly higher than its Weighted Average Cost of Capital (WACC) of 9.98%. This results in a ROIC to WACC ratio of 3.63, indicating that the company is effectively using its capital to generate returns. This efficiency in capital utilization is a positive sign for investors, as it suggests that the company is generating substantial value from its investments.

In comparison, CRA International, Inc. (CRAI) has a ROIC of 15.57% and a WACC of 9.12%, resulting in a ROIC to WACC ratio of 1.71. While CRAI is generating returns above its cost of capital, its efficiency is not as pronounced as Franklin Covey's. Thermon Group Holdings, Inc. (THR) has a ROIC of 8.21% and a WACC of 8.35%, leading to a ROIC to WACC ratio of 0.98, indicating that its returns are slightly below its cost of capital.

Forrester Research, Inc. (FORR) presents a different scenario with a negative ROIC of -51.82% against a WACC of 7.09%, resulting in a ROIC to WACC ratio of -7.31. This suggests that Forrester is not generating sufficient returns to cover its cost of capital, which could be a concern for investors. On the other hand, Forestar Group Inc. (FOR) stands out with a remarkable ROIC of 122.97% and a WACC of 8.89%, leading to a ROIC to WACC ratio of 13.83. This indicates exceptional capital efficiency and strong growth potential.

Alamo Group Inc. (ALG) has a ROIC of 10.48% and a WACC of 9.30%, resulting in a ROIC to WACC ratio of 1.13. While Alamo Group is generating returns above its cost of capital, its efficiency is moderate compared to Franklin Covey and Forestar Group. Overall, Franklin Covey Co. demonstrates strong capital utilization, but Forestar Group Inc. leads the peer group with the highest ROIC to WACC ratio, highlighting its superior capital efficiency.

• Franklin Covey Co. (NYSE:FC) boasts a Return on Invested Capital (ROIC) of 36.27% and a Weighted Average Cost of Capital (WACC) of 10.05%, indicating efficient capital use.
• Comparatively, peers like CRA International and Thermon Group Holdings show lower efficiency in generating returns above their cost of capital.
• Forestar Group Inc. stands out with a ROIC of 122.97% and a WACC of 9.00%, showcasing exceptional capital efficiency.

Franklin Covey Co. (NYSE:FC) is a global company specializing in performance improvement. It offers training and consulting services to help organizations and individuals achieve better results. The company operates in a competitive landscape with peers like CRA International, Thermon Group Holdings, Forrester Research, Forestar Group, and Alamo Group. These companies also focus on enhancing business performance through various services and solutions.

Franklin Covey Co. boasts a Return on Invested Capital (ROIC) of 36.27% and a Weighted Average Cost of Capital (WACC) of 10.05%. This results in a ROIC to WACC ratio of 3.61, indicating that the company generates returns well above its cost of capital. This metric is crucial as it shows how effectively the company uses its capital to generate profits.

In comparison, CRA International, Inc. (CRAI) has a ROIC of 11.57% and a WACC of 9.17%, leading to a ROIC to WACC ratio of 1.26. This suggests that while CRAI is generating returns above its cost of capital, it is not as efficient as Franklin Covey Co. Thermon Group Holdings, Inc. (THR) has a ROIC of 8.21% and a WACC of 8.44%, resulting in a ratio of 0.97, indicating returns slightly below its cost of capital.

Forrester Research, Inc. (FORR) presents a negative ROIC of -51.82% against a WACC of 7.17%, leading to a ROIC to WACC ratio of -7.23. This negative ratio suggests that Forrester is not generating sufficient returns to cover its cost of capital. On the other hand, Forestar Group Inc. (FOR) stands out with a ROIC of 122.97% and a WACC of 9.00%, resulting in a remarkable ROIC to WACC ratio of 13.66, indicating exceptional capital efficiency.

Alamo Group Inc. (ALG) has a ROIC of 10.48% and a WACC of 9.36%, resulting in a ROIC to WACC ratio of 1.12. This shows that Alamo Group is generating returns above its cost of capital, but not as efficiently as Franklin Covey Co. or Forestar Group. This analysis highlights the importance of comparing ROIC and WACC to assess a company's financial performance relative to its peers.

• Franklin Covey Co. (NYSE:FC) showcases a strong Return on Invested Capital (ROIC) of 36.27% compared to its Weighted Average Cost of Capital (WACC) of 10.23%, indicating highly efficient capital use.
• The company's ROIC to WACC ratio of 3.54 significantly surpasses that of its competitors, reflecting its superior ability to generate value from its investments.
• Forestar Group Inc. (FOR) leads in capital efficiency with a ROIC of 122.97% and a WACC of 9.27%, resulting in an impressive ROIC to WACC ratio of 13.26.

Franklin Covey Co. (NYSE:FC) is a global company specializing in organizational performance improvement. It offers training and consulting services to help businesses enhance productivity and leadership. In the competitive landscape, Franklin Covey stands out with its strong Return on Invested Capital (ROIC) of 36.27% compared to its Weighted Average Cost of Capital (WACC) of 10.23%, a key indicator of financial efficiency.

Franklin Covey's ROIC to WACC ratio of 3.54 suggests that the company is generating returns significantly above its cost of capital, indicating efficient capital use. This efficiency is crucial for investors as it reflects the company's ability to create value from its investments.

In comparison, CRA International, Inc. (CRAI) has a ROIC of 11.57% and a WACC of 9.19%, leading to a ROIC to WACC ratio of 1.26. Although positive, CRAI's ratio is lower than Franklin Covey's, indicating less efficient capital use. Similarly, Thermon Group Holdings, Inc. (THR) has a ROIC to WACC ratio of 0.91, with a ROIC of 7.51% and a WACC of 8.30%, showing it generates returns below its cost of capital.

Forrester Research, Inc. (FORR) presents a negative ROIC of -51.82% against a WACC of 7.35%, resulting in a ROIC to WACC ratio of -7.05. This negative ratio indicates that Forrester is not generating sufficient returns to cover its cost of capital, highlighting inefficiency. In contrast, Forestar Group Inc. (FOR) boasts a remarkable ROIC of 122.97% and a WACC of 9.27%, achieving a ROIC to WACC ratio of 13.26, the highest among its peers.

Alamo Group Inc. (ALG) has a ROIC of 10.48% and a WACC of 9.27%, resulting in a ROIC to WACC ratio of 1.13. While positive, it is still lower than Franklin Covey's, indicating less efficient capital use. Overall, Franklin Covey's strong ROIC to WACC ratio highlights its effective capital utilization compared to its peers, except for Forestar Group, which leads in capital efficiency.

Franklin Covey Co. (NYSE:FC) is a global company specializing in performance improvement. It offers training and consulting services to help organizations achieve results that require a change in human behavior. The company operates in a competitive landscape with peers like CRA International, Inc. (CRAI), Thermon Group Holdings, Inc. (THR), Forrester Research, Inc. (FORR), Forestar Group Inc. (FOR), and Alamo Group Inc. (ALG).

Franklin Covey Co. boasts a remarkable Return on Invested Capital (ROIC) of 43.94%, significantly surpassing its Weighted Average Cost of Capital (WACC) of 10.33%. This results in a ROIC to WACC ratio of 4.25, indicating that the company is generating returns well above its cost of capital. This efficiency in capital utilization suggests strong value creation for shareholders.

In comparison, CRA International, Inc. (CRAI) has a ROIC of 16.81% and a WACC of 9.29%, resulting in a ROIC to WACC ratio of 1.81. While CRAI is the most efficient among its peers, Franklin Covey Co. still outshines with its superior ratio, highlighting its exceptional capital efficiency.

Thermon Group Holdings, Inc. (THR) and Forestar Group Inc. (FOR) have ROIC to WACC ratios of 0.94 and 0.84, respectively, indicating that their returns are below their cost of capital. Forrester Research, Inc. (FORR) presents a negative ROIC of -59.12% against a WACC of 7.39%, resulting in a ROIC to WACC ratio of -8.00, suggesting significant inefficiencies.

Alamo Group Inc. (ALG) shows a ROIC of 10.83% and a WACC of 9.34%, leading to a ROIC to WACC ratio of 1.16. While ALG is generating returns above its cost of capital, it still falls short compared to Franklin Covey Co.'s impressive performance. This positions Franklin Covey Co. as a leader in capital efficiency among its peers.