NYSE:FCN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.

Risks

  • FTI Consulting is covered by less than 3 analysts.

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


Market Performance


7 Day Return

0.04%

FCN

0.5%

US Professional Services

-0.6%

US Market


1 Year Return

48.5%

FCN

10.5%

US Professional Services

0.7%

US Market

FCN outperformed the Professional Services industry which returned 10.5% over the past year.

FCN outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

FCNIndustryMarket
7 Day0.04%0.5%-0.6%
30 Day1.3%1.7%2.9%
90 Day28.5%6.0%1.3%
1 Year48.5%48.5%11.6%10.5%2.9%0.7%
3 Year147.8%147.8%49.8%44.7%44.6%35.2%
5 Year208.2%208.2%84.1%74.1%61.9%44.2%

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 based on future cash flows and its price relative to the stock market?

20.66x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

FTI Consulting's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

FTI Consulting's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

FTI Consulting is overvalued based on earnings compared to the US Professional Services industry average.

FTI Consulting is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

FTI Consulting earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

FTI Consulting is overvalued based on assets compared to the US Professional Services industry average.


Next Steps

Future Growth

How is FTI Consulting expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

-5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

FTI Consulting's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).

FTI Consulting's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

FTI Consulting's revenue growth is positive but not above the United States of America market average.

FTI Consulting's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

FTI Consulting's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if FTI Consulting will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has FTI Consulting performed over the past 5 years?

32.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

FTI Consulting has delivered over 20% year on year earnings growth in the past 5 years.

FTI Consulting's 1-year earnings growth is less than its 5-year average (7.5% vs 32.6%)

FTI Consulting's earnings growth has not exceeded the US Professional Services industry average in the past year (7.5% vs 37.9%).


Return on Equity

FTI Consulting has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

FTI Consulting used its assets more efficiently than the US Professional Services industry average last year based on Return on Assets.


Return on Capital Employed

FTI Consulting has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is FTI Consulting's financial position?


Financial Position Analysis

FTI Consulting is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

FTI Consulting's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

FTI Consulting's level of debt (20.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (60.9% vs 20.5% today).

Debt is well covered by operating cash flow (72.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 16x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.5x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate FTI Consulting's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate FTI Consulting's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as FTI Consulting has not reported any payouts.

Unable to verify if FTI Consulting's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as FTI Consulting has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of FTI Consulting's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Steve Gunby (61yo)

5.7yrs

Tenure

US$6,144,794

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

Steve's remuneration is about average for companies of similar size in United States of America.

Steve's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.3yrs

Average Tenure

53yo

Average Age

The tenure for the FTI Consulting management team is about average.


Board Age and Tenure

5.7yrs

Average Tenure

65.5yo

Average Age

The tenure for the FTI Consulting board of directors is about average.


Insider Trading

FTI Consulting individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$798,60322 Aug 19
Ajay Sabherwal
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares7,458
Max PriceUS$107.08
SellUS$427,52022 Aug 19
Vernon Ellis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$106.88
SellUS$513,48006 Aug 19
Gerard Holthaus
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares5,000
Max PriceUS$103.34
SellUS$177,07705 Aug 19
Paul Linton
EntityIndividual
Role
Senior Key Executive
Chief Strategy & Transformation Officer
Shares1,681
Max PriceUS$105.34
SellUS$1,029,14030 Jul 19
Brenda Bacon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,989
Max PriceUS$103.03
SellUS$867,47511 Jun 19
Gerard Holthaus
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares10,000
Max PriceUS$86.82
SellUS$254,41007 Dec 18
Paul Linton
EntityIndividual
Role
Senior Key Executive
Chief Strategy & Transformation Officer
Shares3,800
Max PriceUS$66.95
SellUS$441,52206 Dec 18
Paul Linton
EntityIndividual
Role
Senior Key Executive
Chief Strategy & Transformation Officer
Shares6,351
Max PriceUS$69.52
SellUS$731,58806 Nov 18
Brenda Bacon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares11,000
Max PriceUS$68.02
SellUS$940,04901 Nov 18
Nicholas Fanandakis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares13,522
Max PriceUS$69.52
SellUS$109,71030 Oct 18
Matthew Pachman
EntityIndividual
Shares1,500
Max PriceUS$73.14

Ownership Breakdown


Management Team

  • Ajay Sabherwal (53yo)

    Chief Financial Officer

    • Tenure: 3.1yrs
    • Compensation: US$1.92m
  • Brendan Keating (55yo)

    Chief Accounting Officer & Controller

    • Tenure: 0.5yrs
  • Steve Gunby (61yo)

    President

    • Tenure: 5.7yrs
    • Compensation: US$6.14m
  • Curtis Lu (53yo)

    General Counsel

    • Tenure: 4.3yrs
    • Compensation: US$1.92m
  • Holly Paul (48yo)

    Chief Human Resources Officer

    • Tenure: 5.1yrs
    • Compensation: US$1.92m
  • Kathryn McCarthy

    Senior Managing Director of Technology Practice

    • Tenure: 6.3yrs
  • Paul Linton (48yo)

    Chief Strategy & Transformation Officer

    • Tenure: 5.1yrs
    • Compensation: US$1.92m
  • Edward Berry

    Managing Director

    • Tenure: 0yrs
  • Jan Naifeh

    Senior Managing Director of Corporate Finance & Restructuring

    • Tenure: 1.7yrs
  • Matthew Cowell

    Senior Managing Director of Corporate Finance

    • Tenure: 1yrs

Board Members

  • Vernon Ellis (71yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$299.94k
  • Gerry Holthaus (69yo)

    Non-Executive Chairman

    • Tenure: 5.8yrs
    • Compensation: US$499.94k
  • Claudio Costamagna (63yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$307.44k
  • Oliver Pawle

    Chairman of European Advisory Board

    • Tenure: 0yrs
  • Nick Fanandakis (63yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$309.94k
  • Laureen Seeger (57yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$299.94k
  • Brenda Bacon (68yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$304.94k
  • Steve Gunby (61yo)

    President

    • Tenure: 5.7yrs
    • Compensation: US$6.14m
  • Mark Bartlett (68yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$299.94k

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$3.967b
  • Shares outstanding: 36.53m
  • 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. The company’s Corporate Finance & Restructuring segment provides turnaround and res ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 23:33
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.