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Franklin Covey Co. (NYSE:FC) Outshines Peers in Capital Efficiency

Franklin Covey Co. (NYSE:FC) Outshines Peers in Capital Efficiency Jan. 9, 2025, 7 a.m., readers: 3

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%. The company's ROIC to WACC ratio of 4.25 indicates it is generating returns well above its cost of capital, suggesting strong value creation for shareholders. Compared to peers like CRA International, Inc. (CRAI) and Thermon Group Holdings, Inc. (THR), Franklin Covey Co. demonstrates superior capital efficiency, positioning it as a leader among its competitors. 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.

About NYSE: FC

F ranklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through three segments: Direct Offices, International Licensees, and Education Practice.

Price: 32.95
Market cap: 434.8 million USD
Eps: 1.47
P/e ratio: 22.41
Focus Analysis On: FC