FTI Consulting (FCN) AI Stock Analysis

• Market Cap: $5.42B
• Dividend Yield: N/A
• Average Volume (3M): 355.63K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.31
• Revenue Growth: -0.89%
• EPS Growth: -23.72%
• Country: US
• Employees: 8,105
• Sector: Industrials
• Sector Strength: 84
• Industry: Consulting Services
• EPS (TTM): 2.13
• Shares Outstanding: 32,358,170
• 10 Day Avg. Volume: 362,597
• 30 Day Avg. Volume: 355,631
• PEG Ratio: -13.90
• Price to Book (P/B): 2.98
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 16.92
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 5.17
• Enterprise Value/Ebitda: 16.28
• 1Y Price Target: $189.00
• Price Target Upside: 12.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $189.00 ▲(12.80% Upside)

FTI Consulting's overall score reflects its strong financial performance and moderate technical outlook. While the company faces challenges in certain segments, its strategic resilience and growth in other areas provide a balanced perspective. The valuation is reasonable, though the lack of a dividend yield and weak earnings guidance are concerns.

Positive Factors

Earnings

Second-quarter results came in solidly above expectations, and management’s modest guidance revisions were better than feared, both supporting a positive reaction in shares.

Financial Performance

Revenue of $944 million was above both estimates and consensus, with strong performance in corporate finance, economic consulting, and strategic communications.

Negative Factors

Consultant Attrition

Ongoing risk to estimates from consultant attrition in Economic Consulting.

Guidance

Despite the strong quarter, management lowered the top end of its full-year revenue and adjusted EPS guidance ranges.

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 primarily through its consulting services, which are billed on a fee-for-service basis. The company's revenue model is built around several key streams: advisory fees from corporate finance and restructuring projects, retainer fees for ongoing strategic communications services, and success-based fees related to litigation consulting and forensic services. Additionally, FTI benefits from strategic partnerships with law firms and corporations, positioning itself as a preferred advisor in complex legal and financial matters. The company's ability to attract high-profile clients and engage in high-stakes projects, particularly during economic downturns or periods of crisis, further enhances its revenue potential.

FTI Consulting Financial Statement Overview

Summary

FTI Consulting demonstrates strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is robust, with a strong equity position. However, fluctuations in cash flow metrics and slight decreases in equity highlight areas for potential improvement.

Income Statement

FTI Consulting exhibits strong revenue growth over the years, with a notable increase from $2.77 billion in 2021 to $3.66 billion in the TTM (Trailing-Twelve-Months) of 2025, indicating a solid upward trajectory. The gross profit margin remains robust, consistently above 30%, and the net profit margin is stable, reflecting efficient cost management. However, EBIT and EBITDA margins show slight fluctuations, suggesting some variability in operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio that has improved over the years, indicating a strong equity position relative to debt. The equity ratio is consistently high, over 50%, showing strong shareholder backing. Return on equity remains favorable, although a slight decline in stockholders' equity from 2024 to 2025 may warrant attention.

Cash Flow

Operating cash flow is positive, with strong free cash flow generation, although there is notable volatility in free cash flow growth. The operating cash flow to net income ratio indicates efficient cash generation relative to profits, yet the decline in free cash flow from 2024 to the TTM of 2025 highlights potential areas for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.66B	3.70B	3.49B	3.03B	2.78B	2.46B
Gross Profit	1.16B	1.18B	1.14B	962.93M	860.72M	788.56M
EBITDA	368.21M	405.81M	419.93M	353.34M	363.36M	338.41M
Net Income	249.70M	280.09M	274.89M	235.51M	234.97M	210.68M
Balance Sheet
Total Assets	3.49B	3.60B	3.33B	3.24B	3.10B	2.78B
Cash, Cash Equivalents and Short-Term Investments	152.83M	660.49M	328.68M	491.69M	494.49M	294.95M
Total Debt	686.75M	242.15M	257.64M	568.70M	564.01M	490.52M
Total Liabilities	1.59B	1.34B	1.34B	1.56B	1.52B	1.38B
Stockholders Equity	1.90B	2.26B	1.98B	1.68B	1.58B	1.40B
Cash Flow
Free Cash Flow	107.49M	397.72M	174.98M	135.47M	286.82M	292.20M
Operating Cash Flow	125.17M	395.10M	224.46M	188.79M	355.48M	327.07M
Investing Cash Flow	-55.94M	-10.16M	-73.83M	-60.06M	-79.09M	-60.12M
Financing Cash Flow	-157.89M	-15.38M	-354.66M	-106.01M	-61.67M	-360.05M

FTI Consulting Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 167.56
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 167.56 is below the 20-day moving average (MA) of 167.63, above the 50-day MA of 164.66, and below the 200-day MA of 177.76, indicating a neutral trend. The MACD of 0.80 indicates Positive momentum. The RSI at 51.65 is Neutral, neither overbought nor oversold. The STOCH value of 45.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FCN.

FTI Consulting Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAH	76 Outperform	$13.60B	13.56	96.28%	1.94%	9.25%	75.69%
CRAI	76 Outperform	$1.22B	22.47	29.05%	1.02%	9.28%	44.19%
FCN	74 Outperform	$5.42B	23.53	12.33%	―	-0.89%	-23.72%
ICFI	74 Outperform	$1.74B	16.41	11.09%	0.59%	-0.47%	10.03%
Sector *	71 Outperform	¥266.16B	14.97	8.32%	2.80%	6.19%	10.81%
HURN	71 Outperform	$2.27B	22.91	21.55%	―	8.99%	35.56%
EXPO	56 Neutral	$3.59B	35.45	25.05%	1.66%	3.47%	-2.16%

FTI Consulting Corporate Events

FTI Consulting Updates 2025 Revenue Guidance Amid Challenges

FTI Consulting reported a slight decrease in second quarter 2025 revenues to $943.7 million, down from $949.2 million in the prior year, primarily due to lower revenues in the Economic Consulting and Technology segments. Despite these challenges, the company showed resilience with increased revenues in other segments and adjusted EBITDA of $111.6 million. The company repurchased shares worth $354.9 million and updated its full-year 2025 guidance, projecting revenues between $3.660 billion and $3.760 billion.

The most recent analyst rating on (FCN) stock is a Hold with a $178.00 price target. To see the full list of analyst forecasts on FTI Consulting stock, see the FCN Stock Forecast page.

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.