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Fti Consulting (FCN)
NYSE:FCN

FTI Consulting (FCN) AI Stock Analysis

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FTI Consulting

(NYSE:FCN)

74Outperform
FTI Consulting demonstrates a solid financial base with strategic growth in key segments. However, pressures on profitability and free cash flow, coupled with valuation concerns, present challenges. Technical indicators suggest cautious optimism, while recent corporate governance enhancements and strong segment performance provide a positive outlook.
Positive Factors
Future Potential
FTI has an impressive track record of top-line growth, indicating potential for future success.
Resilience and Growth
The company has a resilient business model, having achieved 11 consecutive years of adjusted EPS growth.
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.

FTI Consulting (FCN) vs. S&P 500 (SPY)

FTI Consulting Business Overview & Revenue Model

Company DescriptionFTI Consulting, Inc. (FCN) is a global business advisory firm headquartered in Washington, D.C. The company operates across several sectors, including corporate finance and restructuring, economic consulting, forensic and litigation consulting, strategic communications, and technology. FTI Consulting offers a broad range of services designed to help organizations manage change, mitigate risk, and resolve disputes, all aimed at enhancing enterprise value in an increasingly complex legal, regulatory, and economic environment.
How the Company Makes MoneyFTI 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 has shown strong revenue growth historically with a solid balance sheet characterized by low leverage and good cash management. However, recent declines in profitability margins and free cash flow growth are areas that need improvement.
Income Statement
85
Very Positive
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
78
Positive
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
76
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.67B3.70B3.49B3.03B2.78B2.46B
Gross Profit
1.17B1.18B1.14B962.93M860.72M788.56M
EBIT
326.44M347.36M377.56M303.88M312.05M282.66M
EBITDA
383.96M405.81M419.93M353.34M363.36M338.41M
Net Income Common Stockholders
261.95M280.09M274.89M235.51M234.97M210.68M
Balance SheetCash, Cash Equivalents and Short-Term Investments
151.12M660.49M328.68M491.69M494.49M294.95M
Total Assets
3.35B3.60B3.33B3.24B3.10B2.78B
Total Debt
361.19M242.15M257.64M568.70M533.18M447.81M
Net Debt
210.07M-418.35M-45.58M77.01M38.70M152.85M
Total Liabilities
1.20B1.34B1.34B1.56B1.52B1.38B
Stockholders Equity
2.15B2.26B1.98B1.68B1.58B1.40B
Cash FlowFree Cash Flow
178.78M397.72M174.98M135.47M286.82M292.20M
Operating Cash Flow
204.71M395.10M224.46M188.79M355.48M327.07M
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
Positive
Last Price166.84
Price Trends
50DMA
163.53
Positive
100DMA
175.35
Negative
200DMA
194.70
Negative
Market Momentum
MACD
0.11
Negative
RSI
54.73
Neutral
STOCH
49.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCN, the sentiment is Positive. The current price of 166.84 is above the 20-day moving average (MA) of 165.02, above the 50-day MA of 163.53, and below the 200-day MA of 194.70, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 54.73 is Neutral, neither overbought nor oversold. The STOCH value of 49.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCN.

FTI Consulting Risk Analysis

FTI Consulting disclosed 38 risk factors in its most recent earnings report. FTI Consulting reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

FTI Consulting Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
BABAH
78
Outperform
$16.31B19.2175.34%1.61%14.07%116.33%
76
Outperform
$2.64B22.9524.88%8.83%92.48%
75
Outperform
$1.33B26.3923.18%0.93%8.49%21.06%
FCFCN
74
Outperform
$5.72B22.7912.46%1.59%-16.79%
69
Neutral
$4.06B39.1525.87%1.42%3.27%3.94%
68
Neutral
$1.62B15.0611.64%0.64%1.95%17.98%
64
Neutral
$4.43B12.015.16%249.23%4.03%-11.73%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FCN
FTI Consulting
166.84
-57.96
-25.78%
BAH
Booz Allen
128.81
-22.90
-15.09%
CRAI
Cra International
195.43
22.64
13.10%
EXPO
Exponent
80.05
-15.55
-16.27%
HURN
Huron Consulting
152.93
66.22
76.37%
ICFI
Icf International
87.78
-58.78
-40.11%

FTI Consulting Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q1-2025)
|
% Change Since: -0.99%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong performance in certain segments such as Forensic and Litigation Consulting and Strategic Communications, while facing challenges in Economic Consulting and Corporate Finance and Restructuring. Despite these challenges, successful share repurchase initiatives and sequential growth in the Technology segment provided some positive outlooks. However, the overall sentiment of the call reflects a balance of positive and negative elements, with uncertainty in economic conditions and regulatory environments noted.
Q1-2025 Updates
Positive Updates
Strong First Quarter for Forensic and Litigation Consulting
Forensic and Litigation Consulting (FLC) segment reported record revenues of $190.6 million, an increase of 8.3% driven by higher realized bill rates for Risk and Investigation services and Data and Analytics services.
Strategic Communications Growth
Strategic Communications reported record revenues of $87 million, an increase of 7.2% due to higher demand for corporate reputation services and pass-through revenues.
Successful Share Repurchase Program
FTI Consulting repurchased 1,126,995 shares at an average price per share of $165.15, totaling $186.1 million, with an additional $400 million authorized for future repurchases.
Technology Segment Sees Sequential Growth
Technology revenues increased 7.2% sequentially, driven by higher M&A-related second request services.
Negative Updates
Economic Consulting Revenue Decline
Economic Consulting revenues decreased by 12.1% due to lower demand for M&A-related antitrust services, financial economics, and non-M&A-related antitrust services.
Revenue Decline in Corporate Finance and Restructuring
Corporate Finance and Restructuring segment revenues decreased by 6.1% due to lower demand and realized bill rates for Transformation and Strategy and Restructuring services.
Special Charge Reduces GAAP EPS
A $25.3 million special charge related to severance and other employee-related costs reduced GAAP EPS by 55¢.
Net Income Decrease
Net income decreased to $61.8 million compared to $80 million in the prior year quarter, driven by lower revenues and the special charge.
Company Guidance
During the FTI Consulting, Inc. First Quarter 2025 Earnings Conference Call, the company provided guidance and insights into various segments. Despite uncertainties and headwinds, including a 3.3% decrease in revenues to $898.3 million and GAAP EPS dropping to $1.74 from $2.23 in the previous year, FTI remains optimistic about the future. Adjusted EPS was $2.29, slightly above the prior year's $2.23. The Forensic and Litigation Consulting (FLC) segment reported record revenues of $190.6 million, an 8.3% increase, driven by high demand in cybersecurity and regulatory compliance. Meanwhile, the Economic Consulting segment faced a 12.1% revenue decline due to lower M&A-related demand and the impact of recent departures. The Technology segment saw a 3.5% revenue decrease, while Strategic Communications achieved record revenues, up 7.2%. Management highlighted ongoing challenges from macroeconomic factors, regulatory shifts, and uncertainties in M&A markets, but reiterated their confidence in the company's medium- to long-term prospects and the strength of their strategic initiatives and talent acquisition efforts.

FTI Consulting Corporate Events

Business Operations and StrategyFinancial Disclosures
FTI Consulting Reports Strong Q1 2025 Performance
Positive
Apr 28, 2025

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.

Spark’s Take on FCN Stock

According to Spark, TipRanks’ AI Analyst, FCN is a Outperform.

FTI Consulting’s overall stock score reflects a well-rounded performance with a solid financial base and strategic growth in key segments. However, pressures on profitability and free cash flow, alongside valuation constraints, indicate some challenges. The technical indicators suggest cautious optimism, while recent corporate governance enhancements provide a positive outlook.

To see Spark’s full report on FCN stock, click here.

Stock BuybackFinancial Disclosures
FTI Consulting Increases Stock Repurchase Authorization
Neutral
Apr 25, 2025

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.

Spark’s Take on FCN Stock

According to Spark, TipRanks’ AI Analyst, FCN is a Outperform.

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.

To see Spark’s full report on FCN stock, click here.

Financial Disclosures
FTI Consulting Reports Q1 2025 Financial Results
Neutral
Apr 25, 2025

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.

Spark’s Take on FCN Stock

According to Spark, TipRanks’ AI Analyst, FCN is a Outperform.

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.

To see Spark’s full report on FCN stock, click here.

Executive/Board Changes
FTI Consulting Expands Board with New Directors
Positive
Mar 31, 2025

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.

Business Operations and StrategyFinancial Disclosures
FTI Consulting Reports Record Revenues Amid Challenges
Neutral
Feb 24, 2025

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.

Business Operations and StrategyFinancial Disclosures
FTI Consulting Reports Mixed 2024 Financial Results
Neutral
Feb 21, 2025

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.

Business Operations and StrategyFinancial Disclosures
FTI Consulting Faces Financial Challenges Amid Workforce Cuts
Neutral
Feb 21, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.