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 enhancing business performance through various services and solutions.
Franklin Covey Co. boasts a Return on Invested Capital (ROIC) of 36.27% and a Weighted Average Cost of Capital (WACC) of 10.05%. This results in a ROIC to WACC ratio of 3.61, indicating that the company generates returns well above its cost of capital. This metric is crucial as it shows how effectively the company uses its capital to generate profits.
In comparison, CRA International, Inc. (CRAI) has a ROIC of 11.57% and a WACC of 9.17%, leading to a ROIC to WACC ratio of 1.26. This suggests that while CRAI is generating returns above its cost of capital, it is not as efficient as Franklin Covey Co. Thermon Group Holdings, Inc. (THR) has a ROIC of 8.21% and a WACC of 8.44%, resulting in a ratio of 0.97, indicating returns slightly below its cost of capital.
Forrester Research, Inc. (FORR) presents a negative ROIC of -51.82% against a WACC of 7.17%, leading to a ROIC to WACC ratio of -7.23. This negative ratio suggests that Forrester is not generating sufficient returns to cover its cost of capital. On the other hand, Forestar Group Inc. (FOR) stands out with a ROIC of 122.97% and a WACC of 9.00%, resulting in a remarkable ROIC to WACC ratio of 13.66, indicating exceptional capital efficiency.
Alamo Group Inc. (ALG) has a ROIC of 10.48% and a WACC of 9.36%, resulting in a ROIC to WACC ratio of 1.12. This shows that Alamo Group is generating returns above its cost of capital, but not as efficiently as Franklin Covey Co. or Forestar Group. This analysis highlights the importance of comparing ROIC and WACC to assess a company's financial performance relative to its peers.
