FTI Consulting (FCN) AI Stock Analysis

• Market Cap: $5.73B
• Dividend Yield: N/A
• Average Volume (3M): 429.90K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.26
• Revenue Growth: 1.59%
• EPS Growth: -16.79%
• Country: US
• Employees: 8,374
• Sector: Industrials
• Sector Strength: 70
• Industry: Consulting Services
• EPS (TTM): 7.81
• Shares Outstanding: 35,380,245
• 10 Day Avg. Volume: 428,306
• 30 Day Avg. Volume: 429,898
• PEG Ratio: 0.90
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.56
• Price to Cash Flow (P/CF): 4.60
• P/FCF Ratio: 4.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $175.50
• Price Target Upside: 7.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

FTI Consulting's overall stock score reflects a robust financial performance, which is a key strength, supported by strong revenue and profit growth. However, technical indicators suggest potential bearish trends, and recent earnings call highlights challenges in certain segments. The valuation is moderate, with the P/E ratio being reasonable for its growth prospects. The recent board expansion is viewed positively.

Positive Factors

Company Culture

FTI is an attractive employer that has created a successful culture of incubating new adjacent service lines and spreading lines into new geographies.

Financial Performance

Adjusted EBITDA of $115 million came in $18 million above estimate, driving a margin of 12.8%.

Negative Factors

Earnings

There was a significant sell-off in shares due to FTI's second consecutive earnings miss and macroeconomic challenges affecting the firm's performance.

Employee Turnover

The company reported weaker 4Q results and offered downside 2025 guidance, partially driven by talent churn in the Economic Consulting segment.

FTI Consulting Business Overview & Revenue Model

Company Description

FTI Consulting, Inc. provides business advisory services to manage change, mitigate risk, and resolve disputes worldwide. The company operates through five segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications. Its Corporate Finance & Restructuring segment provides business transformation, transactions, and turnaround and restructuring services. The company's Forensic and Litigation Consulting segment offers. construction and environmental solution, data and analytics, dispute, health solution, and risk and investigation services. Its Economic Consulting segment provides. antitrust and competition economic, financial economic, and international arbitration services. The company's Technology segment offers corporate legal operation; e-discovery and expertise; and information governance, privacy, and security services. Its Strategic Communications segment provides corporate reputation, financial communication, and public affairs services. The company serves aerospace and defense, agriculture, airlines and aviation, automotive and industrial, construction, energy, power and products, environmental solutions, financial services, healthcare and life sciences, hospitality, gaming and leisure, insurance, mining, private equity, public sector, real estate, retail and consumer products, telecom, media and technology, and transportation and logistics industries. The company was founded in 1982 and is headquartered in Washington, District of Columbia.

How the Company Makes Money

FTI Consulting generates revenue through its five primary business segments: Corporate Finance & Restructuring, Economic Consulting, Forensic & Litigation Consulting, Strategic Communications, and Technology. Each segment offers specialized advisory services that cater to different aspects of business challenges and opportunities. Revenue is primarily derived from consulting fees billed to clients for time spent by FTI professionals on client projects. The company also earns from success fees in restructuring engagements and licenses for its proprietary software in the Technology segment. Key revenue streams include advisory fees for bankruptcy and restructuring, economic expert services for legal cases, forensic investigations, and communication strategy consulting. Significant factors contributing to FTI's earnings include its reputation for handling complex and high-stakes cases, a global client base, and strong relationships with law firms, corporate leaders, and financial institutions.

FTI Consulting Financial Statement Overview

Summary

FTI Consulting exhibits robust financial health, characterized by solid revenue and profit growth, strong profitability margins, and a stable balance sheet with growing equity. The company's cash flow generation is strong, supporting its strategic initiatives. While there are minor areas for improvement in operational efficiency and liability management, the overall financial position is solid, suggesting a positive outlook.

Income Statement

FTI Consulting has demonstrated consistent revenue growth over the years, with a notable increase from $2.35 billion in 2019 to $3.70 billion in 2024. The company's gross profit margin has remained robust, and net income has also increased, indicating strong profitability. The EBIT and EBITDA margins are healthy, showcasing effective cost management. However, a slight decline in EBIT from 2023 to 2024 suggests potential areas for efficiency improvement.

Balance Sheet

FTI Consulting's balance sheet reflects a strong equity position, with stockholders' equity growing from $1.49 billion in 2019 to $2.26 billion in 2024, resulting in a favorable debt-to-equity ratio. The company maintains a high equity ratio, indicating financial stability. However, the increase in total liabilities over the years suggests a need for monitoring, although it is well offset by the growth in assets and equity.

Cash Flow

The company's operating cash flow has shown strong growth, and the free cash flow has significantly increased from $175 million in 2019 to $398 million in 2024. The cash flow metrics indicate excellent cash generation capabilities, supporting operational needs and potential for reinvestment. Despite some fluctuations in capital expenditures, the overall cash flow position remains strong.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.70B	3.49B	3.03B	2.78B	2.46B
	Gross Profit
1.18B	1.14B	962.93M	860.72M	788.56M
	EBIT
347.36M	377.56M	303.88M	312.05M	282.66M
	EBITDA
405.81M	419.93M	353.34M	363.36M	338.41M
	Net Income Common Stockholders
280.09M	274.89M	235.51M	234.97M	210.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
660.49M	328.68M	491.69M	494.49M	294.95M
	Total Assets
3.60B	3.33B	3.24B	3.10B	2.78B
	Total Debt
208.04M	257.64M	568.70M	533.18M	447.81M
	Net Debt
-452.46M	-45.58M	77.01M	38.70M	152.85M
	Total Liabilities
1.34B	1.34B	1.56B	1.52B	1.38B
	Stockholders Equity
2.26B	1.98B	1.68B	1.58B	1.40B
Cash Flow		Free Cash Flow
397.72M	174.98M	135.47M	286.82M	292.20M
	Operating Cash Flow
395.10M	224.46M	188.79M	355.48M	327.07M
	Investing Cash Flow
-10.16M	-73.83M	-60.06M	-79.09M	-60.12M
	Financing Cash Flow
-15.38M	-354.66M	-106.01M	-61.67M	-360.05M

FTI Consulting Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 162.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCN, the sentiment is Negative. The current price of 162.68 is above the 20-day moving average (MA) of 162.61, below the 50-day MA of 165.70, and below the 200-day MA of 199.19, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 47.10 is Neutral, neither overbought nor oversold. The STOCH value of 41.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FCN.

FTI Consulting Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HURN	80 Outperform	$2.41B	21.39	21.32%	―	8.80%	97.52%
BAH	78 Outperform	$13.78B	16.22	75.34%	1.79%	14.07%	116.33%
FCN	73 Outperform	$5.73B	20.72	12.46%	―	1.59%	-16.79%
ICFI	70 Outperform	$1.58B	14.75	11.60%	0.65%	2.88%	33.76%
EXPO	70 Outperform	$4.02B	37.37	28.05%	1.44%	4.05%	8.71%
CRAI	70 Neutral	$1.11B	24.11	21.96%	1.12%	10.17%	24.74%
Sector *	63 Neutral	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%

FTI Consulting Corporate Events

FTI Consulting Expands Board with New Directors

On March 31, 2025, FTI Consulting announced the election of Eric Steigerwalt and Janet Zelenka as independent directors, expanding the Board from nine to eleven members. This strategic move aims to enhance the Board’s expertise, with Steigerwalt bringing operational and financial insights from his role at Brighthouse Financial, and Zelenka contributing her experience in finance, IT, and governance from her tenure at Stericycle and other companies.

FTI Consulting Reports Record Revenues Amid Challenges

FTI Consulting reported its fourth quarter and full-year 2024 earnings, highlighting a strong first half with a 12% revenue increase and a 48% EPS growth compared to the first half of 2023. However, the second half of 2024 saw slower growth than expected, with revenues declining year-on-year and sequentially. Despite this, the company achieved record revenues for the tenth consecutive year. Looking ahead to 2025, FTI Consulting anticipates significant headwinds, including senior departures in its US competition sector and challenging tax rate comparisons, which may impact its financial performance.

FTI Consulting Reports Mixed 2024 Financial Results

FTI Consulting reported its fourth-quarter and full-year financial results for 2024, showing a slight decline in quarterly revenues and net income compared to the previous year. Despite a 6% increase in full-year revenues, the company experienced fluctuations across its segments, with varying performance in adjusted EBITDA margins. Overall, the results reflect the company’s ongoing challenges in adjusting to market conditions and leveraging its cash flow for operational and capital needs.

FTI Consulting Faces Financial Challenges Amid Workforce Cuts

In the fourth quarter of 2024, FTI Consulting faced a series of financial challenges, leading to a workforce evaluation and the termination of approximately 4% of its employees, resulting in a special charge of $25 million over the fourth quarter of 2024 and the first quarter of 2025. Despite these setbacks, the company reported record revenues of $3.699 billion for the full year 2024, marking a 6% increase from the previous year, driven by growth across all business segments. However, fourth-quarter revenues decreased by 3% compared to the prior year, primarily due to lower demand in certain segments. The company remains confident in its growth trajectory, although it anticipates persistent headwinds into 2025.