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Fti Consulting (FCN)
NYSE:FCN

FTI Consulting (FCN) AI Stock Analysis

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FTI Consulting

(NYSE:FCN)

Rating:73Outperform
Price Target:
$183.00
▲(11.68%Upside)
FTI Consulting's overall stock score reflects strong financial performance with robust historical growth and a solid balance sheet. However, recent declines in profitability and mixed technical indicators suggest caution. Valuation is reasonable, but the lack of a dividend yield and mixed earnings call outcomes highlight the need for careful consideration.
Positive Factors
Strategic Planning
The company is strategizing around pricing trends, indicating a proactive approach to market changes.
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.
Financial Performance
Revenue of $898 million came in $14 million below estimate and $9 million below consensus, with downside in economic consulting and technology.

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

FTI Consulting Business Overview & Revenue Model

Company DescriptionFTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk, and resolve disputes. With a team of experts in various fields, FTI Consulting operates across multiple sectors including corporate finance and restructuring, economic consulting, forensic and litigation consulting, strategic communications, and technology. The firm provides tailored solutions to complex business challenges, serving a diverse clientele that includes corporations, law firms, and government agencies.
How the Company Makes MoneyFTI 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 Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q1-2025)
|
% Change Since: -2.76%|
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 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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.67B3.70B3.49B3.03B2.78B2.46B
Gross Profit1.17B1.18B1.14B962.93M860.72M788.56M
EBITDA383.96M405.81M419.93M353.34M363.36M338.41M
Net Income261.95M280.09M274.89M235.51M234.97M210.68M
Balance Sheet
Total Assets3.35B3.60B3.33B3.24B3.10B2.78B
Cash, Cash Equivalents and Short-Term Investments151.12M660.49M328.68M491.69M494.49M294.95M
Total Debt361.19M242.15M257.64M568.70M533.18M447.81M
Total Liabilities1.20B1.34B1.34B1.56B1.52B1.38B
Stockholders Equity2.15B2.26B1.98B1.68B1.58B1.40B
Cash Flow
Free Cash Flow178.78M397.72M174.98M135.47M286.82M292.20M
Operating Cash Flow204.71M395.10M224.46M188.79M355.48M327.07M
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 Price163.86
Price Trends
50DMA
163.70
Positive
100DMA
165.82
Negative
200DMA
185.67
Negative
Market Momentum
MACD
-0.30
Negative
RSI
54.05
Neutral
STOCH
74.69
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 163.86 is above the 20-day moving average (MA) of 161.60, above the 50-day MA of 163.70, and below the 200-day MA of 185.67, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 54.05 is Neutral, neither overbought nor oversold. The STOCH value of 74.69 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$2.37B20.7724.88%8.83%92.48%
BABAH
76
Outperform
$13.32B14.8090.74%2.05%12.36%58.08%
76
Outperform
$1.31B25.9223.18%1.02%8.49%21.06%
FCFCN
73
Outperform
$5.63B22.3812.46%1.59%-16.79%
73
Outperform
$3.89B37.4525.87%1.57%3.27%3.94%
72
Outperform
$1.60B14.9511.64%0.66%1.95%17.98%
65
Neutral
$10.65B15.525.51%1.92%2.72%-26.34%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FCN
FTI Consulting
163.86
-53.91
-24.76%
BAH
Booz Allen
108.27
-43.64
-28.73%
CRAI
Cra International
195.45
24.78
14.52%
EXPO
Exponent
77.60
-15.61
-16.75%
HURN
Huron Consulting
138.39
40.70
41.66%
ICFI
Icf International
88.26
-45.42
-33.98%

FTI Consulting Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
FTI Consulting Stockholders Approve Incentive Plan Amendment
Neutral
Jun 5, 2025

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.

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.

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.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 02, 2025