FTI Consulting, Inc (FCN) stock analysis

P/E above its 5-year median

FTI Consulting's P/E of 24.6 is above its own 5-year median of 24.1.

P/E above the industry

FTI Consulting's P/E of 24.6 is above the Management and Public Relations Services median of 21.9.

EV/EBITDA below its 5-year median

FTI Consulting's EV/EBITDA of 15.3 is below its 5-year median of 15.9.

P/B above the industry

FTI Consulting's price-to-book of 4.06 is above the Management and Public Relations Services median of 2.31.

Trading above fair value

The share price of $197.21 is above our fair value estimate of $168.19.

Margin of safety under 20%

The price is 17.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 7.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 7.8% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -12.3% over the last twelve months, against a 5-year average of 5.2% a year.

Growing faster than the industry

Revenue grew 7.8% over the last twelve months; the Management and Public Relations Services median is 7.2%.

Guidance lowered

FTI Consulting lowered its full year 2026 EPS outlook on Jul 31, 2026.

Gross margin improving

Gross margin was 32.2% over the last twelve months, against 31.9% a year earlier.

Return on equity under 15%

Return on equity was 15.2% over the last twelve months and averaged 14.4% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 12.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

FTI Consulting's return on equity of 15.2% is above the Management and Public Relations Services median of 0.4%.

Earnings grew over 5 years

Net income grew 5.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 5.9% over the last twelve months, against a 5-year average of 7.8%.

Net margin above the industry

FTI Consulting's net margin of 5.9% is above the Management and Public Relations Services median of 0.2%.

High debt

Debt is 64.3% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 20.4% five years ago to 64.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 46.1% of total debt.

Interest well covered

Operating income covers interest expense 9.0 times.

Short-term assets cover short-term debts

Current assets are 1.72 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.81; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

FTI Consulting has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.