Forensic Analysis · General / Diversified · as of Jun 28, 2026
FRANKLIN COVEY CO (FC)
A forensic read on FRANKLIN COVEY CO built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Grey Zone
Financial health
1.5
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-4.1%
ROE
$280M
Market cap
FRANKLIN COVEY CO earns a B (Sound & dependable) forensic quality grade, and its Altman Z-score is 1.5, placing it in the Grey zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
6%Return on invested capital.Return on invested capital is 6% and slipping from 44% — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
127% of FCFShareholder returns.Returned $26M to shareholders (buybacks + dividends) in FY2025 — 127% of free cash flow. More than free cash flow generated — and beyond operating cash too, so the extra is coming from debt or cash reserves, which isn't sustainable indefinitely.
30dInventory days.Days inventory outstanding moved from 22 to 30 FY2024→FY2025 (against cost of goods sold; inventory +29% vs -4% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
2% of revStock-based comp load.Stock-based compensation ran 2% of revenue and 28% of free cash flow in FY2025 — about $0.44 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin1.1%
Debt / Equity0.31x
Free Cash Flow$20.7M
Latest Revenue$267.1M
Return on Equity4.6%
Revenue Growth YoY-7.0%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on FRANKLIN COVEY CO:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about FC's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown