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FC

Franklin Covey Co.
$16.88HoldTarget $20.63Report: Jan 30, 2026IndustrialsConsulting ServicesMature Compounder

Price History

Pelican View
Current$16.88+22.2%
Rec: HoldConviction: Medium
Entry Target
$15.87
(6% below current)
Fair Value
$20.63
(22% above current)
Stop Loss
$14.04
(17% below current)
Position Size
Starter
Time Horizon
Transitional

Key Metrics

Market Data
52 Week High$39.22
52 Week Low$14.04
Avg. 3 Month Volume142K
Efficiency
LTM Gross MarginN/A
LTM EBITDA MarginN/A
LTM EBIT MarginN/A
LTM Operating MarginN/A
LTM ROAN/A
LTM ROEN/A
LTM ROICN/A
LTM ROCEN/A
Capital Structure
Market Cap (MM)$0
Enterprise Value (MM)$0
Shares OutstandingN/A
Total Debt (MM)N/A
Cash & Equivalents (MM)N/A
LTM Net Debt (MM)N/A
LTM Net Debt/EBITDAN/A
Growth
TTM Rev. GrowthN/A
Last 3-Yr Rev. CAGRN/A
Last 3-Yr EBITDA CAGRN/A
Last 3-Yr EPS CAGRN/A
Valuation
Street Target Price$25.00
LTM EV/RevenueN/A
LTM EV/Gross ProfitN/A
LTM EV/EBITN/A
LTM EV/EBITDAN/A
LTM P/EN/A
LTM EV/FCFN/A
LTM P/FCFN/A
LTM P/TBN/A
LTM P/BN/A
Dividend YieldN/A
Payout RatioN/A
About the Company

Franklin Covey Co. is a global company focused on organizational performance improvement. The company's mission is to 'enable greatness in people and organizations everywhere' by helping individuals and organizations achieve results that require collective behavior change. The company's expertise is rooted in the foundational work of Dr. Stephen R. Covey in leadership and personal effectiveness, and Hyrum W. Smith in productivity and time management. The company delivers its solutions through a combination of subscription-based access to proprietary content, implementation tools, assessments, and expert consulting and advisory services. Key offerings include the All Access Pass (AAP) for enterprise clients and the Leader in Me membership for educational institutions.

Revenue Generation

The company generates revenue primarily through subscription-based offerings and related services. The All Access Pass (AAP), sold through the Enterprise Division, provides clients with access to proprietary content, tools, and consulting services. The Leader in Me membership, offered through the Education Division, provides educational institutions with access to digital curriculum and resources. Additional revenue streams include royalty revenues from international licensee partners, sales of training materials, and consulting and coaching services. The company serves a broad array of clients, including corporations, governments, not-for-profits, and educational institutions. The Enterprise Division operates in North America and internationally through direct offices and licensees. The Education Division is dedicated to selling to educational institutions globally.

Investment Thesis
Executive SummaryFranklin Covey is navigating a self-inflicted 'investment trough' where a $16 million sales transformation has temporarily collapsed free cash flow by 75% to $12.1 million. While the market is focused on a 7% revenue decline and macro headwinds in the Enterprise segment, the core subscription moat remains intact with 76.2% gross margins and a growing mix of multi-year contracts (57%). We recommend a Hold as we await quantitative proof that the new 'hunter-farmer' sales model can re-accelerate growth in FY2026.

Recent Activity

2025-11-06-10.07%
Franklin Covey reported Q4 and full fiscal 2025 results with $267.1 million annual revenue.
2025-10-22-5.51%
Franklin Covey Co. announced a conference call to review Q4 and fiscal year 2025 financial results.
2025-07-03-8.56%
Franklin Covey reported Q3 fiscal 2025 financial results with $67.1 million revenue.

Valuation Table

MethodImplied ValueWeightWeighted Value
DCF$26.6853%$14.03
Comps$13.1632%$4.16
Historicals$15.4316%$2.44
Total Weighted$20.63