Franklin Covey Company (FC) vs Skillsoft Corp. (SKIL)

Franklin Covey Company and Skillsoft Corp. are both Education & Training Services companies. Franklin Covey Company is the larger, with a market value of $195.1M against $55.7M — 3.5× the size. Skillsoft Corp. has negative trailing earnings, so its P/E is not meaningful; Franklin Covey Company trades at 96.2×. Skillsoft Corp. grew revenue faster over the last twelve months: 7.17% against −6.14%. Franklin Covey Company has the higher net margin (0.83% vs −32.4%) and the higher return on invested capital (13.0% vs −12.4%). Across the 19 metrics below, Franklin Covey Company leads on 10 and Skillsoft Corp. on 9.

Valuation

Metric FC SKIL Education & Training Services median
P/E 96.17 n/m 11.19
P/S 0.74 0.11 0.92
P/B 4.54 n/m 1.63
Price to free cash flow 18.14 6.78 9.62
EV/EBITDA 9.22 4.81 7.02
EV/Sales 0.71 1.06 0.82
Earnings yield 1.04% (311.43%) 3.17%
Free cash flow yield 5.51% 14.76% 2.30%

Profitability

Metric FC SKIL Education & Training Services median
Gross margin 75.18% 73.62% 54.64%
Operating margin 2.45% (15.25%) 0.00%
Net margin 0.83% (32.36%) 3.29%
Free cash flow margin 4.09% 1.56% 0.00%
Return on equity 4.03% 643.18% 0.00%
Return on assets 1.05% (18.83%) 0.00%
Return on invested capital 12.98% (12.44%) 0.00%

Growth

Metric FC SKIL Education & Training Services median
Revenue growth (TTM) (6.14%) 7.17% 6.97%
EPS growth (last fiscal year) (86.21%) (9.41%) —
Revenue growth, 5-year CAGR 6.12% 2.45% 4.27%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric FC SKIL Education & Training Services median
Debt to equity 0.00 (6.15) 0.08
Current ratio 0.66 0.87 1.33
Net debt to EBITDA (1.65) 6.62 (0.15)

Dividend

Metric FC SKIL Education & Training Services median
Dividend yield — — 1.13%
Payout ratio 0.00 0.00 0.00

Size

Metric FC SKIL Education & Training Services median
Market cap 195.05m 55.69m 68.93m

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