📊 FC Key Takeaways
Is FC a Good Investment? Thesis Analysis
Franklin Covey is experiencing severe financial deterioration with negative profitability across all metrics and inadequate liquidity to support operations. The company generated negative free cash flow of -1.6M despite near-zero revenue growth, indicating fundamental business model stress. Combined with liquidity constraints (0.73x current ratio) and negative interest coverage, the company faces material solvency and operational sustainability concerns.
Why Buy FC? Key Strengths
- Strong gross margin of 75.5% demonstrates pricing power and efficient production in core service offerings
- Positive operating cash flow of 98.0K shows some cash generation despite net losses
- Moderate leverage with debt-to-equity ratio of 0.35x provides some cushion before aggressive deleveraging becomes critical
FC Investment Risks to Consider
- Negative operating margin of -5.7% and net margin of -5.1% indicate the company is unprofitable at core operations with deteriorating earnings (-86.9% YoY)
- Critical liquidity crisis with current ratio of 0.73x and quick ratio of 0.70x, both below 1.0x threshold, creating potential working capital stress
- Negative free cash flow of -1.6M and negative interest coverage ratio of -38.4x signal inability to service debt from operations and limited runway for continued losses
- Zero revenue growth (flat YoY) combined with operating losses suggests business model requires immediate restructuring or faces viability questions
Key Metrics to Watch
- Operating cash flow trend and path to positive free cash flow generation
- Quarterly revenue growth rate and margin recovery timeline
- Current and quick ratios for liquidity adequacy and working capital management
- Operating income swing from negative to positive profitability
- Debt service coverage ratios and refinancing needs
FC Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
FC Profitability Ratios
FC vs Default Sector
How FRANKLIN COVEY CO compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FC Overvalued or Undervalued?
Based on fundamental analysis, FRANKLIN COVEY CO has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FC Balance Sheet & Liquidity
FC 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: FRANKLIN COVEY CO's revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.24 reflects profitable operations.
FC Growth Metrics (YoY)
FC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $67.1M | -$1.3M | $-0.10 |
| Q2 2025 | $59.6M | $105.0K | $0.01 |
| Q1 2025 | $64.0M | $1.2M | $0.09 |
| Q3 2024 | $71.4M | $4.6M | $0.32 |
| Q2 2024 | $61.3M | $874.0K | $0.06 |
| Q1 2024 | $68.4M | $4.7M | $0.32 |
| Q3 2023 | $66.2M | $4.6M | $0.32 |
| Q2 2023 | $56.6M | $1.7M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FC Capital Allocation
FC SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for FRANKLIN COVEY CO (CIK: 0000886206)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FC
What is the AI rating for FC?
FRANKLIN COVEY CO (FC) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FC's key strengths?
Claude: Strong gross margin of 75.5% demonstrates pricing power and efficient production in core service offerings. Positive operating cash flow of 98.0K shows some cash generation despite net losses.
What are the risks of investing in FC?
Claude: Negative operating margin of -5.7% and net margin of -5.1% indicate the company is unprofitable at core operations with deteriorating earnings (-86.9% YoY). Critical liquidity crisis with current ratio of 0.73x and quick ratio of 0.70x, both below 1.0x threshold, creating potential working capital stress.
What is FC's revenue and growth?
FRANKLIN COVEY CO reported revenue of $64.0M.
Does FC pay dividends?
FRANKLIN COVEY CO does not currently pay dividends.
Where can I find FC SEC filings?
Official SEC filings for FRANKLIN COVEY CO (CIK: 0000886206) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FC's EPS?
FRANKLIN COVEY CO has a diluted EPS of $-0.27.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FC a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, FRANKLIN COVEY CO has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FC stock overvalued or undervalued?
Valuation metrics for FC: ROE of -6.1% (sector avg: 15%), net margin of -5.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FC stock in 2026?
Our dual AI analysis gives FRANKLIN COVEY CO a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FC's free cash flow?
FRANKLIN COVEY CO's operating cash flow is $98.0K, with capital expenditures of $1.7M. FCF margin is -2.5%.
How does FC compare to other Default stocks?
Vs Default sector averages: Net margin -5.1% (avg: 12%), ROE -6.1% (avg: 15%), current ratio 0.73 (avg: 1.8).