NYSE:FCN

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 30.7% below its fair value

Earnings have grown 29.3% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -3.5% per year for the next 3 years



Snowflake Analysis

Flawless balance sheet and fair value.


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

2.5%

FCN

0.09%

US Professional Services

0.03%

US Market


1 Year Return

74.0%

FCN

26.8%

US Professional Services

18.6%

US Market

Return vs Industry: FCN exceeded the US Professional Services industry which returned 26.8% over the past year.

Return vs Market: FCN exceeded the US Market which returned 18.6% over the past year.


Shareholder returns

FCNIndustryMarket
7 Day2.5%0.09%0.03%
30 Day5.3%4.6%1.7%
90 Day3.0%0.09%5.7%
1 Year74.0%74.0%27.9%26.8%21.1%18.6%
3 Year139.7%139.7%54.7%49.7%45.6%36.2%
5 Year219.3%219.3%86.5%76.4%71.1%52.3%

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?

30.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FCN ($111.69) is trading below our estimate of fair value ($161.12)

Significantly Below Fair Value: FCN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FCN is good value based on its PE Ratio (19.5x) compared to the Professional Services industry average (19.8x).

PE vs Market: FCN is poor value based on its PE Ratio (19.5x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: FCN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FCN is overvalued based on its PB Ratio (2.8x) compared to the US Professional Services industry average (2.7x).


Next Steps

Future Growth

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

-3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCN's earnings are forecast to decline over the next 3 years (-3.5% per year).

Earnings vs Market: FCN's earnings are forecast to decline over the next 3 years (-3.5% per year).

High Growth Earnings: FCN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FCN's revenue (3.7% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: FCN's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FCN's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has FTI Consulting performed over the past 5 years?

29.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCN has high quality earnings.

Growing Profit Margin: FCN's current net profit margins (9.4%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: FCN's earnings have grown significantly by 29.3% per year over the past 5 years.

Accelerating Growth: FCN's earnings growth over the past year (9.1%) is below its 5-year average (29.3% per year).

Earnings vs Industry: FCN earnings growth over the past year (9.1%) underperformed the Professional Services industry 23.5%.


Return on Equity

High ROE: FCN's Return on Equity (14.5%) is considered low.


Return on Assets


Return on Capital Employed


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 ($546.8M).

Long Term Liabilities: FCN's short term assets ($1.1B) exceed its long term liabilities ($682.3M).


Debt to Equity History and Analysis

Debt Level: FCN's debt to equity ratio (18.7%) is considered satisfactory.

Reducing Debt: FCN's debt to equity ratio has reduced from 59.3% to 18.7% over the past 5 years.

Debt Coverage: FCN's debt is well covered by operating cash flow (81%).

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


Balance Sheet

Inventory Level: FCN has a low level of unsold assets or inventory.

Debt Coverage by Assets: FCN's debt is covered by short term assets (assets are 4x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

4.5yrs

Average management tenure


CEO

Steve Gunby (61yo)

5.9yrs

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

Compensation vs Market: Steve's total compensation ($USD6.14M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

4.5yrs

Average Tenure

53yo

Average Age

Experienced Management: FCN's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

65.5yo

Average Age

Experienced Board: FCN's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Ownership Breakdown

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


Management Team

  • Ajay Sabherwal (53yo)

    Chief Financial Officer

    • Tenure: 3.3yrs
    • Compensation: US$1.92m
  • Brendan Keating (55yo)

    Chief Accounting Officer & Controller

    • Tenure: 0.8yrs
  • Steve Gunby (61yo)

    President

    • Tenure: 5.9yrs
    • Compensation: US$6.14m
  • Curtis Lu (53yo)

    General Counsel

    • Tenure: 4.5yrs
    • Compensation: US$1.92m
  • Holly Paul (48yo)

    Chief Human Resources Officer

    • Tenure: 5.3yrs
    • Compensation: US$1.92m
  • Kathryn McCarthy

    Senior Managing Director of Technology Practice

    • Tenure: 6.6yrs
  • Paul Linton (48yo)

    Chief Strategy & Transformation Officer

    • Tenure: 5.3yrs
    • Compensation: US$1.92m
  • Edward Berry

    Managing Director

    • Tenure: 0yrs
  • Jan Naifeh

    Senior Managing Director of Corporate Finance & Restructuring

    • Tenure: 1.9yrs
  • Matthew Cowell

    Senior Managing Director of Corporate Finance

    • Tenure: 1.3yrs

Board Members

  • Vernon Ellis (71yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$299.94k
  • Gerry Holthaus (69yo)

    Non-Executive Chairman

    • Tenure: 6yrs
    • Compensation: US$499.94k
  • Claudio Costamagna (63yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$307.44k
  • Oliver Pawle

    Chairman of European Advisory Board

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

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$309.94k
  • Laureen Seeger (57yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$299.94k
  • Brenda Bacon (68yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$304.94k
  • Steve Gunby (61yo)

    President

    • Tenure: 5.9yrs
    • Compensation: US$6.14m
  • Mark Bartlett (68yo)

    Independent Director

    • Tenure: 4.9yrs
    • 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$3.973b
  • Shares outstanding: 36.54m
  • 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 Analysis2019/12/07 23:38
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.