Franklin Covey Co. (NYSE:FC) demonstrates a strong Return on Invested Capital (ROIC) of 34.39%, significantly outperforming its Weighted Average Cost of Capital (WACC) of 8.75%.
Forestar Group Inc. leads with an ROIC of 122.97% and a WACC of 7.77%, showcasing exceptional capital efficiency.
Forrester Research, Inc. has a negative ROIC to WACC ratio, indicating it is not generating returns above its cost of capital.
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 competes with firms like Forestar Group Inc., CRA International, Inc., Thermon Group Holdings, Inc., Alamo Group Inc., and Forrester Research, Inc. in the broader business services sector.
Franklin Covey Co. showcases a strong Return on Invested Capital (ROIC) of 34.39%, significantly surpassing its Weighted Average Cost of Capital (WACC) of 8.75%. This results in a ROIC to WACC ratio of 3.93, indicating that the company is effectively generating returns on its investments, creating value for its shareholders.
In comparison, Forestar Group Inc. leads the peer group with an impressive ROIC of 122.97% and a WACC of 7.77%, resulting in a ROIC to WACC ratio of 15.83. This highlights Forestar’s exceptional capital efficiency and ability to generate substantial returns over its cost of capital.
CRA International, Inc. has a ROIC of 15.57% and a WACC of 8.10%, yielding a ROIC to WACC ratio of 1.92. While it generates returns above its cost of capital, it does not match the efficiency of Franklin Covey Co. or Forestar Group Inc.
Thermon Group Holdings, Inc. and Alamo Group Inc. have ROIC to WACC ratios of 1.10 and 1.17, respectively. Both companies generate returns above their cost of capital, but their margins are modest compared to Franklin Covey Co. and Forestar Group Inc. Forrester Research, Inc., however, has a negative ROIC to WACC ratio of -1.02, indicating it is not currently generating returns above its cost of capital.
