Recent News
Aug. 13, 2025 — Board reauthorized a share repurchase program up to $50 million and adopted a Rule 10b5-1 trading plan. Aug. 7, 2025 — Holly Procter promoted to President of the Enterprise Division, effective Sept. 1, 2025, with a planned advisory transition for the outgoing division head. Aug. 27, 2025 — Training Magazine recognized FranklinCovey as a 2025 Training Magazine Network Choice Awards winner in Leadership Development for the fifth consecutive year. Aug. 20–22, 2025 — Analyst notes refreshed: Barrington Research and Roth Capital reduced / updated price targets in the low-to-mid $20s while maintaining positive ratings.
Technical Analysis
ADX at 12.74 signals a no-trend environment, indicating directional moves lack current strength and increasing the likelihood of range-bound price action rather than a sustained breakout.
DI+ sits at 23.59 with a peak-and-reversal pattern, a bearish development; DI- at 22.54 increasing confirms downside pressure. Together they imply directional momentum currently favors sellers and raises short-term price risk.
MACD equals -0.16 and trends decreasing while the MACD signal line is -0.07; negative, falling MACD indicates bearish momentum for price action and a lack of upward momentum to support a breakout above short-term averages.
MRO equals -18.64 with a peak-and-reversal note, and since the MRO is negative the price sits below its modeled target, implying mean-reversion potential that could generate upside pressure if momentum indicators stabilize.
RSI at 45.22 and decreasing places the stock below neutral but not yet oversold; declining RSI aligns with short-term weakening and suggests limited immediate buying conviction unless it reverses upward.
Price relationships reinforce the momentum story: last close $18.06 sits below the 12-day EMA ($19.11 decreasing), the 20-day average ($19.39), the 50-day average ($19.31), and well below the 200-day average ($25.24). Bollinger bands place the close near the lower band (lower ~ $18.05), highlighting compressed range and proximity to short-term support levels. Ichimoku Tenkan/Kijun at $19.68 sits above price, adding to short-term resistance. Together, these patterns point to pressured short-term price action but leave room for a mean-reversion bounce given the MRO signal and proximity to lower-band support.
Fundamental Analysis
Revenue totaled $67,121,000; gross profit $51,322,000 producing a gross margin of 76.46%, a notably high gross margin percentage relative to the industry peer mean of 52.89% (industry peer mean provided). Operating income reached $2,536,000 and operating margin measured 3.78%.
EBIT stood at -$1,992,000, producing an EBIT margin of -2.97%, which sits above the industry peer low of -32.72% but below the industry peer mean of 9.85% and median of 7.71%. QoQ change in EBIT margin registered +48.4% while YoY EBIT margin declined -125.29% (reported QoQ and YoY figures shown as percentages where available).
Net income totaled -$1,409,000 even as EPS surprised positively: actual EPS $0.16 versus estimate $0.13, an EPS surprise of 23.08%. Adjusted EBITDA of $223,000 and free cash flow $2,769,000 combine with operating cash flow $6,263,000 to show continued cash generation despite a small GAAP loss; cash on hand totaled $33,707,000.
Leverage remains minimal: total debt $2,349,000, debt-to-assets 1.08% and debt-to-equity 3.58%, all low by the industry peer mean and providing financial flexibility. Liquidity ratios show constraint: current ratio 83.90% and quick ratio 80.83% both sit below the industry peer means (current ratio mean 189.94%, quick ratio mean 188.07%), indicating working capital tightness despite strong cash reserves.
Market multiples present mixed signals. Trailing PE sits at 149.39 while forward PE equals 47.16; P/B at 4.11 registers slightly above the industry peer mean of 3.78. Free cash flow yield equals 1.03%, which lies above the industry peer mean of 0.73% and supports the WMDST valuation view. WMDST values the stock as under-valued given cash generation, low leverage, and franchise-level margins.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-05-31 |
| REPORT DATE: | 2025-07-02 |
| NEXT REPORT DATE: | 2025-09-23 |
| CASH FLOW | Begin Period Cash Flow | $ 40.4 M |
| Operating Cash Flow | $ 6.3 M | |
| Capital Expenditures | $ -3.49 M | |
| Change In Working Capital | $ 2.0 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 2.0 M | |
| End Period Cash Flow | $ 33.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 67.1 M | |
| Forward Revenue | $ -79.34 M | |
| COSTS | ||
| Cost Of Revenue | $ 15.8 M | |
| Depreciation | $ 1.1 M | |
| Depreciation and Amortization | $ 2.2 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 64.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ 51.3 M | |
| EBITDA | $ 223.0 K | |
| EBIT | $ -1.99 M | |
| Operating Income | $ 2.5 M | |
| Interest Income | $ 211.0 K | |
| Interest Expense | $ 135.0 K | |
| Net Interest Income | $ 76.0 K | |
| Income Before Tax | $ -2.13 M | |
| Tax Provision | $ -718.00 K | |
| Tax Rate | 33.8 % | |
| Net Income | $ -1.41 M | |
| Net Income From Continuing Operations | $ -1.41 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.13 | |
| EPS Actual | $ 0.16 | |
| EPS Difference | $ 0.03 | |
| EPS Surprise | 23.077 % | |
| Forward EPS | $ 0.53 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 218.3 M | |
| Intangible Assets | $ 66.9 M | |
| Net Tangible Assets | $ -1.29 M | |
| Total Current Assets | $ 111.0 M | |
| Cash and Short-Term Investments | $ 33.7 M | |
| Cash | $ 33.7 M | |
| Net Receivables | $ 49.8 M | |
| Inventory | $ 4.1 M | |
| Long-Term Investments | $ 29.7 M | |
| LIABILITIES | ||
| Accounts Payable | $ 6.2 M | |
| Short-Term Debt | $ 816.0 K | |
| Total Current Liabilities | $ 132.3 M | |
| Net Debt | — | |
| Total Debt | $ 2.3 M | |
| Total Liabilities | $ 152.7 M | |
| EQUITY | ||
| Total Equity | $ 65.6 M | |
| Retained Earnings | $ 121.9 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 5.05 | |
| Shares Outstanding | 12.629 M | |
| Revenue Per-Share | $ 5.17 | |
| VALUATION | Market Capitalization | $ 269.4 M |
| Enterprise Value | $ 238.1 M | |
| Enterprise Multiple | 1067.526 | |
| Enterprise Multiple QoQ | 192.246 % | |
| Enterprise Multiple YoY | 2461.845 % | |
| Enterprise Multiple IPRWA | FC: 1067.526 high: 116.304 median: 50.871 mean: 49.658 low: -19.795 |
|
| EV/R | 3.547 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.329 | |
| Asset To Liability | 1.429 | |
| Debt To Capital | 0.035 | |
| Debt To Assets | 0.011 | |
| Debt To Assets QoQ | 185.411 % | |
| Debt To Assets YoY | 13.983 % | |
| Debt To Assets IPRWA | high: 0.567 mean: 0.131 median: 0.085 FC: 0.011 low: 0.009 |
|
| Debt To Equity | 0.036 | |
| Debt To Equity QoQ | 211.208 % | |
| Debt To Equity YoY | 23.988 % | |
| Debt To Equity IPRWA | high: 1.595 mean: 0.266 median: 0.139 FC: 0.036 low: -0.105 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 4.108 | |
| Price To Book QoQ | -29.457 % | |
| Price To Book YoY | -39.102 % | |
| Price To Book IPRWA | high: 6.818 FC: 4.108 mean: 3.779 median: 3.413 low: 0.071 |
|
| Price To Earnings (P/E) | 149.393 | |
| Price To Earnings QoQ | -136.731 % | |
| Price To Earnings YoY | 72.691 % | |
| Price To Earnings IPRWA | high: 178.212 FC: 149.393 mean: 75.651 median: 70.955 low: -169.263 |
|
| PE/G Ratio | -0.498 | |
| Price To Sales (P/S) | 4.014 | |
| Price To Sales QoQ | -43.35 % | |
| Price To Sales YoY | -39.503 % | |
| Price To Sales IPRWA | high: 21.432 mean: 10.018 median: 9.687 FC: 4.014 low: 0.105 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 47.163 | |
| Forward PE/G | -0.157 | |
| Forward P/S | -3.304 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 5.328 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.305 | |
| Asset Turnover Ratio QoQ | 18.137 % | |
| Asset Turnover Ratio YoY | -7.838 % | |
| Asset Turnover Ratio IPRWA | high: 0.414 FC: 0.305 mean: 0.184 median: 0.154 low: 0.05 |
|
| Receivables Turnover | 1.302 | |
| Receivables Turnover Ratio QoQ | 25.235 % | |
| Receivables Turnover Ratio YoY | 4.295 % | |
| Receivables Turnover Ratio IPRWA | high: 7.123 mean: 3.021 median: 2.713 FC: 1.302 low: 0.579 |
|
| Inventory Turnover | 3.874 | |
| Inventory Turnover Ratio QoQ | 10.672 % | |
| Inventory Turnover Ratio YoY | -0.251 % | |
| Inventory Turnover Ratio IPRWA | high: 17.071 mean: 7.58 median: 6.841 FC: 3.874 low: 0.832 |
|
| Days Sales Outstanding (DSO) | 70.102 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 54.064 | |
| Cash Conversion Cycle Days QoQ | -27.255 % | |
| Cash Conversion Cycle Days YoY | -5.34 % | |
| Cash Conversion Cycle Days IPRWA | high: 157.689 FC: 54.064 mean: 9.284 median: 2.528 low: -22.108 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -3.151 | |
| CapEx To Revenue | -0.052 | |
| CapEx To Depreciation | -3.128 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 65.6 M | |
| Net Invested Capital | $ 66.4 M | |
| Invested Capital | $ 66.4 M | |
| Net Tangible Assets | $ -1.29 M | |
| Net Working Capital | $ -21.30 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.255 | |
| Current Ratio | 0.839 | |
| Current Ratio QoQ | -7.069 % | |
| Current Ratio YoY | -4.527 % | |
| Current Ratio IPRWA | high: 5.391 mean: 1.899 median: 1.36 FC: 0.839 low: 0.708 |
|
| Quick Ratio | 0.808 | |
| Quick Ratio QoQ | -7.336 % | |
| Quick Ratio YoY | -4.318 % | |
| Quick Ratio IPRWA | high: 5.267 mean: 1.881 median: 1.552 FC: 0.808 low: 0.523 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 10.534 | |
| Cost Of Debt | 2.749 % | |
| Interest Coverage Ratio | -14.756 | |
| Interest Coverage Ratio QoQ | 93.11 % | |
| Interest Coverage Ratio YoY | -142.325 % | |
| Interest Coverage Ratio IPRWA | high: 62.65 mean: 22.96 median: 8.375 FC: -14.756 low: -31.824 |
|
| Operating Cash Flow Ratio | 0.028 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 42.874 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.381 % | |
| Revenue Growth | 12.596 % | |
| Revenue Growth QoQ | -191.854 % | |
| Revenue Growth YoY | -35.817 % | |
| Revenue Growth IPRWA | high: 17.27 % FC: 12.596 % median: 5.08 % mean: 3.336 % low: -14.452 % |
|
| Earnings Growth | -300.0 % | |
| Earnings Growth QoQ | 58.823 % | |
| Earnings Growth YoY | -230.0 % | |
| Earnings Growth IPRWA | high: 191.304 % median: -12.857 % mean: -16.791 % low: -255.556 % FC: -300.0 % |
|
| MARGINS | ||
| Gross Margin | 76.462 % | |
| Gross Margin QoQ | -0.362 % | |
| Gross Margin YoY | -0.184 % | |
| Gross Margin IPRWA | high: 87.08 % FC: 76.462 % median: 54.159 % mean: 52.892 % low: 27.029 % |
|
| EBIT Margin | -2.968 % | |
| EBIT Margin QoQ | 48.4 % | |
| EBIT Margin YoY | -125.29 % | |
| EBIT Margin IPRWA | high: 32.421 % mean: 9.85 % median: 7.707 % FC: -2.968 % low: -32.724 % |
|
| Return On Sales (ROS) | 3.778 % | |
| Return On Sales QoQ | -288.9 % | |
| Return On Sales YoY | -67.808 % | |
| Return On Sales IPRWA | high: 36.885 % mean: 7.588 % FC: 3.778 % median: 3.705 % low: -34.682 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 2.8 M | |
| Free Cash Flow Yield | 1.028 % | |
| Free Cash Flow Yield QoQ | -220.941 % | |
| Free Cash Flow Yield YoY | -14.405 % | |
| Free Cash Flow Yield IPRWA | high: 4.407 % FC: 1.028 % mean: 0.727 % median: 0.18 % low: -8.891 % |
|
| Free Cash Growth | -177.131 % | |
| Free Cash Growth QoQ | 34.684 % | |
| Free Cash Growth YoY | 276.963 % | |
| Free Cash Growth IPRWA | high: 660.215 % mean: 144.08 % median: 14.336 % FC: -177.131 % low: -216.813 % |
|
| Free Cash To Net Income | -1.965 | |
| Cash Flow Margin | 5.542 % | |
| Cash Flow To Earnings | -2.64 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -0.641 % | |
| Return On Assets QoQ | 37.259 % | |
| Return On Assets YoY | -124.816 % | |
| Return On Assets IPRWA | high: 5.931 % mean: 0.71 % FC: -0.641 % median: -0.808 % low: -10.078 % |
|
| Return On Capital Employed (ROCE) | -2.317 % | |
| Return On Equity (ROE) | -0.021 | |
| Return On Equity QoQ | 44.811 % | |
| Return On Equity YoY | -127.106 % | |
| Return On Equity IPRWA | high: 0.206 mean: 0.011 median: -0.001 FC: -0.021 low: -0.248 |
|
| DuPont ROE | -2.04 % | |
| Return On Invested Capital (ROIC) | -1.986 % | |
| Return On Invested Capital QoQ | -182.578 % | |
| Return On Invested Capital YoY | -88.371 % | |
| Return On Invested Capital IPRWA | high: 15.681 % mean: 2.652 % median: 2.072 % FC: -1.986 % low: -15.002 % |
|