FMP

FMP

Enter

Franklin Covey Co. Performance Analysis

- (Last modified: Nov 25, 2024 9:27 AM)

twitterlinkedinfacebook
blog post cover photo

Image credit: Google Images

  • Franklin Covey Co. (NYSE:FC) boasts a remarkable Return on Invested Capital (ROIC) of 46.10%, significantly surpassing its Weighted Average Cost of Capital (WACC) of 10.18%.
  • Compared to peers, Franklin Covey demonstrates superior financial performance with a ROIC to WACC ratio of 4.53, indicating efficient capital utilization and strong value creation for shareholders.
  • Other companies like CRA International, Inc. (CRAI), Thermon Group Holdings, Inc. (THR), and Forrester Research, Inc. (FORR) show varying levels of capital efficiency, with Franklin Covey leading in value creation.

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 46.10%, significantly surpassing its Weighted Average Cost of Capital (WACC) of 10.18%. This results in a ROIC to WACC ratio of 4.53, indicating that the company is generating returns well above its cost of capital. This efficient capital utilization suggests strong value creation for shareholders.

In comparison, CRA International, Inc. (CRAI) has a ROIC of 16.81% and a WACC of 9.16%, leading to a ROIC to WACC ratio of 1.83. While CRAI demonstrates efficient capital use, it still falls short of Franklin Covey's performance. Thermon Group Holdings, Inc. (THR) and Forestar Group Inc. (FOR) have ROIC to WACC ratios below 1, indicating returns that do not cover their cost of capital.

Forrester Research, Inc. (FORR) presents a negative ROIC of -59.12% against a WACC of 7.37%, resulting in a ROIC to WACC ratio of -8.03. This suggests significant challenges in generating returns on investments. Alamo Group Inc. (ALG) has a ROIC to WACC ratio of 1.17, showing moderate efficiency in capital utilization but still lagging behind Franklin Covey.

Overall, Franklin Covey Co. stands out among its peers with its superior ROIC to WACC ratio, reflecting its strong financial performance and effective capital management. This positions NYSE:FC as a potentially attractive investment, given its ability to create value well above its cost of capital.

Other Blogs

May 14, 2024 11:41 AM - Sanzhi Kobzhan

The easiest way to calculate stock’s target price and why the target price is important.

A stock's target price, also known as its fair value, is an indication of what a share can cost based on the company’s forecasted financial statements. It is important to know a stock's fair value to find undervalued stocks with great growth potential. Let's consider how investment analysts calculat...

blog post title

May 24, 2024 9:30 AM - Rajnish Katharotiya

How to Access and Analyze Earnings Call Transcripts

Earnings call transcripts are invaluable resources for investors, analysts, and financial enthusiasts. They provide insights into a company's performance, strategy, and future outlook, making them essential for making informed investment decisions. With Financial Modeling Prep, Earnings Call Transcr...

blog post title

May 27, 2024 3:30 PM - Rajnish Katharotiya

The best 5 GPU stocks other than NVDA

In the ever-evolving world of technology, certain sectors have consistently demonstrated exceptional growth and innovation. The graphics processing units (GPUs) industry is one such sector, offering investors a golden opportunity for potentially high returns. In this blog, we'll delve into why inves...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep