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 better results. The company operates in a competitive landscape with peers like CRA International, Thermon Group Holdings, Forrester Research, Forestar Group, and Alamo Group. These companies also focus on various aspects of business improvement and consulting.
Franklin Covey Co. boasts a Return on Invested Capital (ROIC) of 36.27%, significantly higher than its Weighted Average Cost of Capital (WACC) of 9.98%. This results in a ROIC to WACC ratio of 3.63, indicating that the company is effectively using its capital to generate returns. This efficiency in capital utilization is a positive sign for investors, as it suggests that the company is generating substantial value from its investments.
In comparison, CRA International, Inc. (CRAI) has a ROIC of 15.57% and a WACC of 9.12%, resulting in a ROIC to WACC ratio of 1.71. While CRAI is generating returns above its cost of capital, its efficiency is not as pronounced as Franklin Covey's. Thermon Group Holdings, Inc. (THR) has a ROIC of 8.21% and a WACC of 8.35%, leading to a ROIC to WACC ratio of 0.98, indicating that its returns are slightly below its cost of capital.
Forrester Research, Inc. (FORR) presents a different scenario with a negative ROIC of -51.82% against a WACC of 7.09%, resulting in a ROIC to WACC ratio of -7.31. This suggests that Forrester is not generating sufficient returns to cover its cost of capital, which could be a concern for investors. On the other hand, Forestar Group Inc. (FOR) stands out with a remarkable ROIC of 122.97% and a WACC of 8.89%, leading to a ROIC to WACC ratio of 13.83. This indicates exceptional capital efficiency and strong growth potential.
Alamo Group Inc. (ALG) has a ROIC of 10.48% and a WACC of 9.30%, resulting in a ROIC to WACC ratio of 1.13. While Alamo Group is generating returns above its cost of capital, its efficiency is moderate compared to Franklin Covey and Forestar Group. Overall, Franklin Covey Co. demonstrates strong capital utilization, but Forestar Group Inc. leads the peer group with the highest ROIC to WACC ratio, highlighting its superior capital efficiency.
