FTI Consulting (FCN) AI Stock Analysis

• Market Cap: $5.62B
• Dividend Yield: N/A
• Average Volume (3M): 382.83K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.23
• Revenue Growth: 1.59%
• EPS Growth: -16.79%
• Country: US
• Employees: 8,105
• Sector: Industrials
• Sector Strength: 90
• Industry: Consulting Services
• EPS (TTM): 2.29
• Shares Outstanding: 34,286,987
• 10 Day Avg. Volume: 364,866
• 30 Day Avg. Volume: 382,826
• PEG Ratio: -53.16
• Price to Book (P/B): 3.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.49
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 4.65
• Enterprise Value/Ebitda: 3.19
• 1Y Price Target: $173.00
• Price Target Upside: 8.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: $177.00 ▲(10.83%Upside)

The overall stock score of 68 reflects a solid financial foundation and strategic optimism, tempered by technical weaknesses and mixed earnings performance. Financial performance and earnings call insights are the primary drivers of the score, with valuation and technical analysis contributing to a balanced outlook.

Positive Factors

Employer Attractiveness

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

FTI Consulting has a resilient business model, having achieved 11 consecutive years of adjusted EPS growth.

Talent Retention

FTI Consulting is focusing on talent retention, which is crucial for maintaining its competitive edge.

Negative Factors

Consultant Attrition

Ongoing risk to estimates from consultant attrition in Economic Consulting.

Earnings Miss

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

Guidance Shortfall

FTI Consulting reported weaker 4Q results and offered downside 2025 guidance partially driven by talent churn in the Economic Consulting segment and a slower start to the year on capital markets activity.

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 makes money through a diversified revenue model that primarily involves charging clients for professional services provided by its various business segments. Key revenue streams include consulting fees from its corporate finance and restructuring services, where the firm assists companies with financial advisory and operational improvement strategies. The economic consulting segment generates revenue by providing economic analysis and expert testimony in legal and regulatory proceedings. Forensic and litigation consulting offers investigative services and litigation support, contributing to the firm's earnings through fees for expert witness services and forensic analysis. The strategic communications segment earns revenue by offering advice on managing stakeholder relationships and protecting client reputations. Additionally, the technology segment provides e-discovery and information governance services, further diversifying the firm's income. FTI Consulting's earnings are also supported by significant partnerships with legal firms and corporations that require specialized advisory services. These partnerships help in securing long-term contracts and repeat business, contributing to steady revenue growth.

FTI Consulting Financial Statement Overview

Summary

FTI Consulting demonstrates solid financial performance, highlighted by robust revenue growth and a strong balance sheet. While efficient cost management and low leverage are positives, declines in profitability margins and free cash flow growth are areas for improvement.

Income Statement

FTI Consulting has demonstrated robust revenue growth over the years, with the latest TTM (Trailing-Twelve-Months) revenue at $3.67 billion. The gross profit margin stood at an impressive 31.83%, indicating efficient cost management. However, the recent decline in EBIT and net income margins suggests some pressure on profitability. The revenue growth rate from 2024 to TTM is negative, primarily due to a slight dip in annual revenue, which needs to be monitored.

Balance Sheet

The company maintains a strong equity base, with a debt-to-equity ratio of 0.17, indicating low leverage and financial stability. The equity ratio of 64.20% further demonstrates a solid financial position. Return on equity (ROE) stands at 12.19%, showing reasonable returns to shareholders. However, the reduction in stockholders' equity from the previous year is a concern and warrants attention.

Cash Flow

The operating cash flow to net income ratio of 0.78 suggests a healthy cash generation relative to profits. However, free cash flow has decreased from the previous year, with a significant decline in the free cash flow growth rate. The reduction in capital expenditure is a positive sign, indicating efficient cash management, but the overall declining trend in free cash flow should be addressed.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.67B	3.70B	3.49B	3.03B	2.78B	2.46B
	Gross Profit
1.17B	1.18B	1.14B	962.93M	860.72M	788.56M
	EBIT
326.44M	347.36M	377.56M	303.88M	312.05M	282.66M
	EBITDA
383.96M	405.81M	419.93M	353.34M	363.36M	338.41M
	Net Income Common Stockholders
261.95M	280.09M	274.89M	235.51M	234.97M	210.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
294.95M	660.49M	328.68M	491.69M	494.49M	294.95M
	Total Assets
2.78B	3.60B	3.33B	3.24B	3.10B	2.78B
	Total Debt
447.81M	242.15M	257.64M	568.70M	533.18M	447.81M
	Net Debt
152.85M	-418.35M	-45.58M	77.01M	38.70M	152.85M
	Total Liabilities
1.38B	1.34B	1.34B	1.56B	1.52B	1.38B
	Stockholders Equity
1.40B	2.26B	1.98B	1.68B	1.58B	1.40B
Cash Flow		Free Cash Flow
178.78M	397.72M	174.98M	135.47M	286.82M	292.20M
	Operating Cash Flow
204.71M	395.10M	224.46M	188.79M	355.48M	327.07M
	Investing Cash Flow
-48.57M	-10.16M	-73.83M	-60.06M	-79.09M	-60.12M
	Financing Cash Flow
-246.27M	-15.38M	-354.66M	-106.01M	-61.67M	-360.05M

FTI Consulting Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 159.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 159.7 is below the 20-day moving average (MA) of 164.18, below the 50-day MA of 163.83, and below the 200-day MA of 190.22, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 36.70 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
BAH	78 Outperform	$12.82B	14.24	90.74%	2.04%	14.07%	116.33%
HURN	76 Outperform	$2.47B	21.01	24.88%	―	8.83%	92.48%
CRAI	75 Outperform	$1.29B	25.53	23.18%	1.00%	8.49%	21.06%
ICFI	73 Outperform	$1.55B	14.45	11.64%	0.67%	1.95%	17.98%
EXPO	69 Neutral	$3.93B	37.86	25.87%	1.47%	3.27%	3.94%
FCN	68 Neutral	$5.62B	21.86	12.46%	―	1.59%	-16.79%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%

FTI Consulting Corporate Events

FTI Consulting Stockholders Approve Incentive Plan Amendment

At the recent Annual Meeting, FTI Consulting‘s stockholders approved an amendment to the 2017 Omnibus Incentive Compensation Plan, which includes an increase of 676,000 shares of common stock and an extension of the plan’s expiration date to June 4, 2035. Additionally, stockholders voted on several proposals, including the election of directors, the ratification of KPMG LLP as the independent auditor for 2025, and an advisory vote on executive compensation, reflecting the company’s commitment to aligning with shareholder interests and strategic growth.

The most recent analyst rating on (FCN) stock is a Buy with a $275.00 price target. To see the full list of analyst forecasts on FTI Consulting stock, see the FCN Stock Forecast page.

FTI Consulting Reports Strong Q1 2025 Performance

FTI Consulting reported a strong first quarter in 2025, driven by significant roles in its Forensic and Litigation Consulting (FLC) segment, despite the confidentiality of many assignments. The company highlighted the importance of its competitive strengths and market strategies in maintaining performance amidst macroeconomic uncertainties, with particular success in restructuring and transaction businesses in specific markets like Germany.

FTI Consulting Increases Stock Repurchase Authorization

FTI Consulting reported a decrease in first quarter 2025 revenues to $898.3 million, down 3.3% from the previous year, primarily due to lower revenues in its Economic Consulting and Corporate Finance & Restructuring segments. Despite the revenue decline, the company announced a $400 million increase in its stock repurchase authorization, bringing the total authorization to $1.7 billion. This move reflects FTI Consulting’s commitment to returning value to shareholders and maintaining financial flexibility. The company also faced a special charge of $25.3 million related to severance and other employee-related costs, impacting its net income, which fell to $61.8 million from $80.0 million in the prior year. However, FTI Consulting’s adjusted EBITDA improved to $115.2 million, indicating resilience in its core operations.

FTI Consulting Reports Q1 2025 Financial Results

FTI Consulting reported its financial performance for the first quarter of 2025, highlighting a 0.4% increase in revenues compared to the previous quarter, but a 3.3% decrease from the same period last year. The company experienced significant growth in adjusted earnings per diluted share and adjusted EBITDA, indicating improved operational efficiency. However, there was a notable decline in cash and cash equivalents, and an increase in total debt, which may impact future financial flexibility. The company’s use of non-GAAP financial measures aims to provide a clearer picture of its core operating performance, though these measures may not be comparable with other companies.

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.