NYSE:FCN

Stock Analysis Report

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Executive Summary

FTI Consulting, Inc. provides business advisory services to manage change, mitigate risk, and resolve disputes worldwide.

Rewards

Trading at 15.5% below its fair value

Earnings are forecast to grow 13.01% per year

Earnings grew by 20.8% over the past year

Risk Analysis

No risks detected for FCN from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has FTI Consulting's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FCN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.4%

FCN

4.7%

US Professional Services

3.0%

US Market


1 Year Return

43.0%

FCN

14.1%

US Professional Services

9.9%

US Market

Return vs Industry: FCN exceeded the US Professional Services industry which returned 14.3% over the past year.

Return vs Market: FCN exceeded the US Market which returned 9.5% over the past year.


Shareholder returns

FCNIndustryMarket
7 Day4.4%4.7%3.0%
30 Day-3.6%7.5%8.2%
90 Day8.1%-2.7%0.4%
1 Year43.0%43.0%15.1%14.1%12.4%9.9%
3 Year248.8%248.8%42.4%38.2%31.0%22.3%
5 Year199.3%199.3%61.4%53.0%58.1%40.3%

Price Volatility Vs. Market

How volatile is FTI Consulting's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FTI Consulting undervalued compared to its fair value and its price relative to the market?

15.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FCN ($120.46) is trading below our estimate of fair value ($142.55)

Significantly Below Fair Value: FCN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FCN is poor value based on its PE Ratio (20.9x) compared to the Professional Services industry average (18.5x).

PE vs Market: FCN is poor value based on its PE Ratio (20.9x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: FCN is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: FCN is overvalued based on its PB Ratio (3x) compared to the US Professional Services industry average (2.6x).


Next Steps

Future Growth

How is FTI Consulting forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCN's forecast earnings growth (13% per year) is above the savings rate (2.2%).

Earnings vs Market: FCN's earnings (13% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: FCN's earnings are forecast to grow, but not significantly.

Revenue vs Market: FCN's revenue (5.1% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: FCN's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FCN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has FTI Consulting performed over the past 5 years?

29.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCN has high quality earnings.

Growing Profit Margin: FCN's current net profit margins (8.8%) are higher than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: FCN's earnings have grown significantly by 29.6% per year over the past 5 years.

Accelerating Growth: FCN's earnings growth over the past year (20.8%) is below its 5-year average (29.6% per year).

Earnings vs Industry: FCN earnings growth over the past year (20.8%) exceeded the Professional Services industry 10.2%.


Return on Equity

High ROE: FCN's Return on Equity (14.4%) is considered low.


Next Steps

Financial Health

How is FTI Consulting's financial position?


Financial Position Analysis

Short Term Liabilities: FCN's short term assets ($1.1B) exceed its short term liabilities ($451.3M).

Long Term Liabilities: FCN's short term assets ($1.1B) exceed its long term liabilities ($717.2M).


Debt to Equity History and Analysis

Debt Level: FCN's debt to equity ratio (22.3%) is considered satisfactory.

Reducing Debt: FCN's debt to equity ratio has reduced from 63.6% to 22.3% over the past 5 years.

Debt Coverage: FCN's debt is well covered by operating cash flow (59.8%).

Interest Coverage: FCN's interest payments on its debt are well covered by EBIT (19.6x coverage).


Balance Sheet


Next Steps

Dividend

What is FTI Consulting's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FCN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FCN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FCN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FCN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FCN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Steve Gunby (61yo)

6.42yrs

Tenure

US$7,261,144

Compensation

Mr. Steven H. Gunby, also known as Steve, J.D. has been President, CEO, and a Member of the Board of Directors of FTI Consulting since January 2014. Mr. Gunby is a Director of Arrow Electronics, Inc. since ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD7.26M) is about average for companies of similar size in the US market ($USD5.91M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Gunby
President6.42yrsUS$7.26m1.04% $45.0m
Ajay Sabherwal
Chief Financial Officer3.83yrsUS$1.95m0.048% $2.1m
Curtis Lu
General Counsel5yrsUS$1.94m0.078% $3.4m
Holly Paul
Chief Human Resources Officer5.83yrsUS$1.94m0.055% $2.4m
Paul Linton
Chief Strategy & Transformation Officer5.83yrsUS$1.94m0.089% $3.8m
Brendan Keating
Chief Accounting Officer & Controller1.25yrsno data0.019% $843.2k
Edward Berry
Managing Directorno datano datano data
Jan Naifeh
Senior Managing Director of Corporate Finance & Restructuring2.42yrsno datano data
Matthew Cowell
Senior Managing Director of Corporate Finance1.75yrsno datano data
Kathryn McCarthy
Senior Managing Director of Technology Practice7.08yrsno datano data

5.0yrs

Average Tenure

53yo

Average Age

Experienced Management: FCN's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Gunby
President6.42yrsUS$7.26m1.04% $45.0m
Vernon Ellis
Independent Director8.42yrsUS$299.95k0.070% $3.0m
Gerard Holthaus
Independent Chairman of the Board6.5yrsUS$499.95k0.19% $8.0m
Claudio Costamagna
Independent Director8.42yrsUS$307.45k0.11% $4.9m
Oliver Pawle
Chairman of European Advisory Boardno datano datano data
Nicholas Fanandakis
Independent Director6.42yrsUS$309.95k0.064% $2.8m
Laureen Seeger
Independent Director4.25yrsUS$299.95k0.060% $2.6m
Brenda Bacon
Independent Director13.5yrsUS$304.95k0.067% $2.9m
Mark Bartlett
Independent Director5.42yrsUS$299.95k0.079% $3.4m

6.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: FCN's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FCN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

FTI Consulting, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FTI Consulting, Inc.
  • Ticker: FCN
  • Exchange: NYSE
  • Founded: 1982
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$4.337b
  • Shares outstanding: 36.01m
  • Website: https://www.fticonsulting.com

Number of Employees


Location

  • FTI Consulting, Inc.
  • 555 12th Street NW
  • Suite 700
  • Washington
  • District Of Columbia
  • 20004
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FCNNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1996
FCQDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1996

Biography

FTI Consulting, Inc. provides business advisory services to manage change, mitigate risk, and resolve disputes worldwide. Its Corporate Finance & Restructuring segment provides turnaround, restructuring, business transformation, bankruptcy, interim management, valuation and financial advisory, transaction, dispute advisory, and tax services, as well as mergers and acquisitions (M&A), and M&A integration services. The company’s Forensic and Litigation Consulting segment offers anti-corruption/anti-money laundering investigations and compliance, and data and analytics, as well as compliance, monitoring, and receivership services; cybersecurity, forensic accounting and advisory, and global risk and investigations practice; and construction solutions, dispute advisory, trial, insurance claims, health and environmental solutions, and export controls and sanctions. Its Economic Consulting segment provides financial, economic, and econometric consulting; business and expert valuation, and expert testimony services; intellectual property services; economic and statistical analyses services; services related to public policy and regulated industries, and healthcare economics and policy; international arbitration; and economic impact analysis, market modeling, and securities litigation and risk management services and other litigation services. The company’s Technology segment offers e-discovery and data compliance management, managed document review, digital forensics, information governance, privacy and security, and contract intelligence services, as well as Radiance Visual Analytics software. Its Strategic Communications segment provides advice services relating to public affairs and government relations, crisis communications, corporate reputation, digital and, capital markets communications, transaction communications, and digital, analytics, and insights. The company was founded in 1982 and is headquartered in Washington, District of Columbia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 02:34
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.