$35.30
arrow_drop_up0.02%Is FC a Buy or Sell based on AI Analysis?
Fundamental Analysis
One of the key indicators from the fundamental analysis of Franklin Covey Co is its price-to-earnings (P/E) ratio of 30.51, which indicates how much investors are willing to pay for each dollar of earnings generated by the company. With a P/E ratio above the industry average, potential investors may view the stock as overvalued. Another important indicator is the return on equity (ROE) of 24.9%, which measures the company's profitability by showing how much profit it generates with the money shareholders have invested. A high ROE suggests that Franklin Covey Co is efficiently utilizing its shareholders' equity to generate profits. Additionally, the company's debt-to-equity ratio of 0.11 indicates its financial leverage and risk level. A low debt-to-equity ratio suggests that Franklin Covey Co has a conservative capital structure with a lower risk of financial distress. The gross margin of 76.1% reflects the percentage of revenue that exceeds the cost of goods sold, indicating the company's ability to generate profits from its core business operations. Furthermore, the revenue growth of 6.73% showcases Franklin Covey Co's ability to increase its top-line sales over time, indicating potential future growth opportunities for the company. These fundamental indicators provide valuable insights for investors looking to make informed decisions about investing in Franklin Covey Co.
Positive Development
Franklin Covey has been recognized as the winner of a 2024 Training Magazine Network Choice Award for Outstanding Training Products and Solutions in Leadership Development, a prestigious accolade that speaks to the company's strong reputation in the industry. The company has partnered with World of Business Ideas to have renowned thought leaders and bestselling authors present at 2024 World Business Forum Events, demonstrating a strong commitment to innovation and growth. Franklin Covey's stock price has shown an upward trend over the past few weeks, indicating investor confidence in the company's future performance.
Negative Development
Despite the positive developments, the company's stock price has experienced some fluctuations in the past few weeks, with a slight decrease in the previous week. The company's financial performance has been impacted by high debt levels, which could affect its ability to invest in new growth opportunities and respond to market changes. The company's asset turnover ratio is relatively low, indicating that it may not be utilizing its assets efficiently.
Technical Analysis
Franklin Covey Co's technical analysis indicates a neutral rating, with one technical buy indicator (ATR), six technical hold indicators (RSI, MACD, CCI, ADX, WILLR, and ROC), and one technical sell indicator (STOCHRSI) for the month. The stock currently has a beta of 1.24, suggesting it is slightly more volatile than the market average. The stock's price has shown a consistent upward trend over the longest trendline, with a slope of 0.03, indicating positive momentum in the stock's price movement. In terms of support and resistance levels, Franklin Covey Co's stock has a longest support price at $38.43, having experienced a 6.02% decrease from its previous levels. The closest support price is also at $38.43, indicating potential levels of price support. On the resistance side, the stock has no data for longest or closest resistance levels. Overall, the technical analysis suggests that Franklin Covey Co's stock is currently in a neutral position with some support levels in place, potentially indicating a stable outlook for the stock in the near term.
Conclusion and recommendation
Based on the data provided, Franklin Covey Co appears to be a promising investment opportunity. With a solid market score of 75 and a diverse range of positive indicators, including a strong return on equity of 24.9% and a healthy operating margin of 12.33%, the company exhibits financial stability and growth potential. Additionally, the company's historical revenue growth of 6.73% and strong gross profit of $213.49M further support its strong position in the market. Furthermore, the company's analyst consensus and AI forecast both point towards a positive outlook, with potential price increases in the near future. In conclusion, Franklin Covey Co presents a compelling investment opportunity with strong financial metrics and positive growth prospects. With a diverse range of technical indicators and a solid revenue growth rate, the company is well-positioned for continued success in the market. Investors looking for a stable and potentially lucrative investment opportunity may consider adding Franklin Covey Co to their portfolio, as it appears to be a promising choice for long-term growth and profitability.