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Franklin Covey Co Owner Earnings per Share (TTM)

: 1.87 (As of Aug. 2021)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Franklin Covey Co's Owner Earnings per Share (TTM) ended in Aug. 2021 was $1.87. It's Price-to-Owner-Earnings ratio for today is 23.48.


The historical rank and industry rank for Franklin Covey Co's Owner Earnings per Share (TTM) or its related term are showing as below:

NYSE:FC' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 10.54   Med: 28.21   Max: 5200
Current: 23.44

10.54
5200

During the past 13 years, the highest Price-to-Owner-Earnings ratio of Franklin Covey Co was 5200.00. The lowest was 10.54. And the median was 28.21.


NYSE:FC's Price-to-Owner-Earnings is ranked lower than
62% of the 606 Companies
in the Business Services industry.

( Industry Median: 16.59 vs. NYSE:FC: 23.44 )

Franklin Covey Co's Earnings per Share (Diluted) for the three months ended in Aug. 2021 was $0.13. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Aug. 2021 was $0.97. It's PE Ratio ratio for today is 45.40.

Franklin Covey Co's EPS without NRI for the three months ended in Aug. 2021 was $0.13. Its EPS without NRI for the trailing twelve months (TTM) ended in Aug. 2021 was $0.97. It's PE Ratio without NRI ratio for today is 45.40.


Franklin Covey Co Owner Earnings per Share (TTM) Historical Data

The historical data trend for Franklin Covey Co's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Franklin Covey Co Annual Data
Trend Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.38 0.01 0.89 1.19 1.87

Franklin Covey Co Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.19 1.54 1.57 1.59 1.87

Competitive Comparison

For the Consulting Services subindustry, Franklin Covey Co's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Franklin Covey Co Owner Earnings per Share (TTM) Distribution

For the Business Services industry and Industrials sector, Franklin Covey Co's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Franklin Covey Co's Owner Earnings per Share (TTM) falls into.



Franklin Covey Co Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Franklin Covey Co's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 13.6
Depreciation, Depletion and Amortization 12.2
Change In Deferred Tax -9.8
5Y Average of Maintenance Capital Expenditure 7.4
Change In Working Capital 17.9
Shares Outstanding (Diluted Average) 14.2

1. Start with "Net Income" from income statement. Franklin Covey Co's Net Income for the trailing twelve months (TTM) ended in Aug. 2021 was $13.6 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Franklin Covey Co's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Aug. 2021 was $12.2 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Franklin Covey Co's Change In Deferred Tax for the trailing twelve months (TTM) ended in Aug. 2021 was $-9.8 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $7.4 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Franklin Covey Co's 5-Year Average Maintenance Capital Expenditure = $7.4 Mil

5. "Change In Working Capital" is from cashflow statement. Franklin Covey Co's Change In Working Capital for the trailing twelve months (TTM) ended in Aug. 2021 was $17.9 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Franklin Covey Co's Shares Outstanding (Diluted Average) for the months ended in Aug. 2021 was 14.173 Mil.

Franklin Covey Co's Onwer Earnings Per Share for Aug. 2021 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 13.623 +12.199+-9.79
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-7.3743213171102+17.89)/14.173
=1.87

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=43.90/1.87
=23.48

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Franklin Covey Co Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Franklin Covey Co's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Franklin Covey Co Business Description

Franklin Covey Co logo
Industry
Industrials » Business Services NAICS : 541611 SIC : 8742
Traded in Other Exchanges
N/A
Address
2200 West Parkway Boulevard, Salt Lake City, UT, USA, 84119-2331
Franklin Covey Co is a global company focused on organizational performance improvement. It focuses on providing time management and effectiveness training for individuals and corporations via online training as well as in-person workshops and events. The company provides training and consulting services in the areas of leadership, execution, productivity, trust, sales performance, customer loyalty, and educational improvement. It operates in the business segments of Direct Offices, Education practice and International Licensees. The company derives revenue from providing training and consulting services, and through the selling of books, audio media, and other related products. It has a business presence in the United States and other international countries.
Executives
Whitman Robert A director, officer: Chief Executive Officer 4200 TEXAS COMMERCE TOWER WEST 2200 ROSS AVE DALLAS TX 75201
Young Stephen D officer: Chief Financial Officer PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: YOUNG STEPHEN D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Davis Clifton Todd officer: VP People Services 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Covey Michael Sean Merrill officer: SVP Innovations and Marketing 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Miller Scott Jeffery officer: EVP Bus Development/Marketing 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Dom Colleen D officer: EVP Operations 2200 WEST PARKWAY BLVD SALT LAKE CITY UT 84119
Walker Paul S officer: EVP, Direct Offices Division 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Stepp Esther Kay director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: STEPP ESTHER KAY a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Phillips Nancy R director 1515 BROADWAY NEW YORK NY 10036
Fung Michael director 2200 WEST PARKWAY BLVD SALT LAKE CITY UT 84119
Mcnamara Donald J director 4200 TEXAS COMMERCE TOWER WEST 2200 ROSS AVE SUITE 4200 DALLAS TX 75201
Chow Anne H director 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Heiner Dennis Grant director 2220 WEST PARKWAY BLVD SALT LAKE CITY UT 84119
Van Bever Derek C M director 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Peterson Joel Clinton director C/O JETBLUE AIRWAYS CORPORATION 27-01 QUEENS PLAZA NORTH LONG ISLAND CITY NY 11101

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