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Franklin Covey

FC
38
Consulting Services · Industrials
Price
$20.28
-0.22 (-1.07%)
Market Cap
$229.0M
Winston Score
38
Winston is serious
Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

7.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 14.1M (2021) → 13.1M (2025)

Franklin Covey is a training and consulting company that helps businesses, schools, and governments teach their employees skills like leadership, productivity, and teamwork. Its most famous product is based on the book *The 7 Habits of Highly Effective People*, and it sells courses, workshops, and coaching programs to organizations around the world. The company serves corporate clients, K-12 schools, and government agencies across many industries.

Franklin Covey makes most of its money through a subscription model called "All Access Pass," which lets companies pay an annual fee to use its full library of training content. It operates mainly in the United States but also has international reach through licensees and direct offices. Its brand recognition and content library give it some competitive staying power, but the company faces real pressure from a crowded market of online learning platforms and corporate training providers, and its very low operating margin and negative return on invested capital signal that turning a profit consistently remains a significant challenge.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+0.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-107.1% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

18.9%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$14M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Franklin Covey is growing revenue at 0% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
72.9%
Premium pricing power — 72.9% gross margin
Operating Margin
-0.8%
Losing money on operations — -0.8%
ROCE
-1.3%
Weak — -1.3% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
-8.9%
Shrinking sales (-8.9% YoY)
EPS YoY
-101.1%
Earnings shrinking (-101.1% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
7.0%
Modest free cash flow (7.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.02
Conservative — low debt load (0.02)
Interest Cover
7.82x
Adequate interest coverage (7.8x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
113.9x
Expensive — P/E 113.9

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+63.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (113.9 → 50.4)

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Dividends

Not applicable for this business.
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