Is Franklin Covey Co. (FC) an Inexpensive Stock?

Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Value Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, the strategy outperformed the benchmark Russell Microcap Index which rose 4.68%. Most of the portfolio holdings of the strategy met or exceeded earnings and revenue expectations in the quarter. Investor sentiments gradually improved as the quarter went on. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Wasatch Micro Cap Value Strategy highlighted stocks like Franklin Covey Co. (NYSE:FC), in the first quarter 2024 investor letter. Franklin Covey Co. (NYSE:FC) offers training and consultation services in organizational performance improvement areas. The one-month return of Franklin Covey Co. (NYSE:FC) was -8.42%, and its shares gained 0.51% of their value over the last 52 weeks. On June 10, 2024, Franklin Covey Co. (NYSE:FC) stock closed at $35.37 per share with a market capitalization of $469.218 million.

Wasatch Micro Cap Value Strategy stated the following regarding Franklin Covey Co. (NYSE:FC) in its first quarter 2024 investor letter:

"Among our recent buys, we added Franklin Covey Co. (NYSE:FC). Franklin Covey provides consulting, seminars, educational materials, publications and products designed to make individuals and organizations more effective. Franklin Covey has done well with its “7 Habits” training line and has seen good results from its “All Access Pass” subscription model, which creates recurring revenues. We think the stock is inexpensive based on the company’s significant cash flows and relatively predictable future bookings, which are apparent on the balance sheet. Additionally, we believe Franklin Covey is recession-resistant because much of its training can be delivered efficiently over the internet and because businesses have come to understand the importance of investing in people during all economic environments. Indicating management’s confidence, the company frequently buys back shares when the stock price is down."

An executive delivering a keynote presentation on improving sales performance at a corporate event.

Franklin Covey Co. (NYSE:FC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Franklin Covey Co. (NYSE:FC) at the end of the first quarter which was 19 in the previous quarter. Franklin Covey Co.'s (NYSE:FC) most recent quarterly results were in line with expectations, reporting revenue of $61.3 million and adjusted EBITDA of $7.4 million. While we acknowledge the potential of Franklin Covey Co. (NYSE:FC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Franklin Covey Co. (NYSE:FC) and shared Tourlite Capital Management's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.