Franklin Covey Co. (FC) AI Stock Analysis

Franklin Covey Co. specializes in offering comprehensive training and consulting services designed to enhance organizational and individual performance across the globe. The company's expertise spans areas such as execution, sales performance, productivity improvement, customer loyalty enhancement, and educational advancement. It operates through three segments: Direct Offices, International Licensees, and Education Practice. Direct Offices delivers consulting and training solutions directly through regional offices, while International Licensees licenses proprietary methodologies globally. In addition, Franklin Covey Co. offers individual-effectiveness and leadership-development training programs. Headquartered in Salt Lake City, Utah, the firm was founded in 1983.

Franklin Covey grew revenue from $224.2M in FY2021 to $287.2M in FY2024 before revenue fell 7.0% to $267.1M in FY2025. Across this period, gross margin stayed resilient, registering 76.2% in FY2025 compared to 77.1% in FY2021. However, operating margin dropped from 11.5% in FY2024 to 2.1% in FY2025, pulling net income down from $23.4M to $3.1M. Revenue posted a 5-year CAGR of 6.1% from FY2020 to FY2025. For the trailing twelve months, revenue was $262.7M with an operating margin of 7.4% and EPS of $0.15. In the latest quarter ended May 31, 2026, revenue increased 1.0% year-over-year while quarterly earnings fell 61.3%.

As of May 31, 2026, Franklin Covey held $12.0M in cash and short-term investments, with total assets of $198.0M and shareholders' equity of $42.9M. The current ratio was 0.66. Operating cash flow stood at $29.0M in FY2025, and free cash flow was $12.1M, down from $60.3M and $56.6M, respectively, in FY2024. In FY2025, the company deployed cash toward $16.9M in capital expenditures and $26.4M in share buybacks, which contributed to a 20.0% reduction in share count over 5 years.

Franklin Covey trades at a market cap of $202.7M and an enterprise value of $181.4M. Its trailing P/E of 119.7x and forward P/E of 18.9x sit above the median of its US-listed Consumer Defensive peers, which stand at 18.6x and 14.3x, respectively. The company's EV to EBITDA is 11.9x, near the peer median of 11.7x. Over the past year, the stock returned 2.3%, trailing the 16.8% return of the S&P 500 (SPY). Over five years, the stock dropped 56.9% compared to an 83.0% gain for the benchmark index.

Wall Street consensus shows 2 Strong Buy and 1 Buy ratings, with zero Hold, Sell, or Strong Sell recommendations. The mean price target of $31.00 represents a 72.7% premium over the last close of $17.95 on October 16, 2026. For the current fiscal year ended August 31, 2026, analysts estimate revenue of $263.7M and EPS of $1.25, representing projected EPS growth of 118.0%. For the next fiscal year, 2 analysts project revenue of $274.8M and EPS of $1.41. The company beat EPS estimates in 1 of the last 4 quarters, with next earnings scheduled for November 4, 2026.

This page is an AI-written research summary of Franklin Covey Co. (FC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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