Franklin Covey Co. (NYSE:FC) is a global company specializing in performance improvement. It offers training and consulting services to help organizations and individuals achieve their goals. 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. exhibits a remarkable Return on Invested Capital (ROIC) of 50.62%, significantly surpassing its Weighted Average Cost of Capital (WACC) of 8.20%. This results in a ROIC to WACC ratio of 6.17, indicating that the company is generating returns well above its cost of capital, thus creating substantial value for its shareholders.
In comparison, CRA International, Inc. (CRAI) has a ROIC of 13.43% and a WACC of 7.98%, resulting in a ROIC to WACC ratio of 1.68. While this is the highest among Franklin Covey's peers, it still falls short of Franklin Covey's impressive performance, highlighting Franklin Covey's superior capital efficiency.
Thermon Group Holdings, Inc. (THR) and Alamo Group Inc. (ALG) have ROIC to WACC ratios of 1.11 and 1.08, respectively. These figures suggest that while they are generating returns above their cost of capital, their efficiency in capital utilization is not as pronounced as Franklin Covey's.
Forrester Research, Inc. (FORR) presents a concerning scenario with a negative ROIC of -38.85% against a WACC of 6.88%, leading to a ROIC to WACC ratio of -5.65. This indicates that Forrester is not covering its cost of capital, resulting in value destruction, contrasting sharply with Franklin Covey's robust financial health.
