FTI Consulting, Inc. (FCN)

FTI Consulting, Inc. (FCN) Industrial Operations Profile

FTI Consulting, Inc. delivers business advisory services across diverse sectors, focusing on change management, risk mitigation, and dispute resolution. Operating through five segments, FCN serves industries like aerospace, healthcare, and financial services, positioning itself as a key player in the global consulting landscape with a market cap of $4.66B.

What Is the Investment Thesis for FCN?

FTI Consulting presents a compelling investment case driven by its diversified service offerings and broad industry exposure. With a market capitalization of $4.66B and a P/E ratio of 18.2, the company demonstrates financial stability. A key growth catalyst is the increasing demand for risk management and dispute resolution services across various sectors. The company's negative beta of -0.01 suggests low volatility relative to the market. However, investors should monitor the competitive landscape and potential economic downturns that could affect consulting demand. The company's ability to maintain its profit margin of 6.9% and gross margin of 31.8% will be critical for sustained growth.

Based on FMP financials and quantitative analysis

FCN Key Highlights

• Market Cap of $4.66B indicates substantial company size and investor confidence.
• P/E Ratio of 18.2 suggests the company is reasonably valued compared to its earnings.
• Profit Margin of 6.9% demonstrates the company's ability to generate profit from its revenue.
• Gross Margin of 31.8% reflects the efficiency of the company's service delivery.
• Beta of -0.01 indicates low volatility compared to the overall market, potentially offering stability during market downturns.

Who Are FCN's Competitors?

FCN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are FCN's Key Strengths?

• Diversified service offerings across multiple segments.
• Strong reputation and expertise in specialized consulting areas.
• Global presence and extensive client network.
• Experienced leadership team.

What Are FCN's Weaknesses?

• Reliance on billable hours can be affected by economic downturns.
• Competition from larger consulting firms.
• Potential for project delays or cancellations.
• Sensitivity to regulatory changes and legal challenges.

What Could Drive FCN Stock Higher?

• Increasing demand for cybersecurity consulting services due to rising cyber threats.
• Growth in restructuring and turnaround consulting amid economic uncertainty.
• Expansion into new geographic markets to broaden client base.
• Potential acquisitions of smaller consulting firms to enhance service offerings.
• Launch of new technology-driven solutions to improve service delivery efficiency.

What Are the Key Risks for FCN?

• Economic downturns affecting consulting demand and project budgets.
• Intense competition from larger consulting firms with greater resources.
• Regulatory changes impacting specific industries and consulting services.
• Reputational risks associated with high-profile cases and client engagements.
• Project delays or cancellations due to unforeseen circumstances.

What Are the Growth Opportunities for FCN?

• Expansion in Cybersecurity Consulting: The increasing frequency and sophistication of cyber threats are driving demand for cybersecurity consulting services. FTI Consulting's Technology segment can capitalize on this trend by expanding its offerings in information governance, privacy, and security. The global cybersecurity market is projected to reach $300 billion by 2027, presenting a significant growth opportunity for FTI Consulting to enhance its market share through specialized expertise and tailored solutions.
• Increased Demand for Dispute Resolution Services: As businesses face more complex legal and regulatory challenges, the demand for dispute resolution services is expected to rise. FTI Consulting's Forensic and Litigation Consulting segment is well-positioned to benefit from this trend. The global dispute resolution market is estimated at $20 billion annually, offering FTI Consulting opportunities to expand its client base and service offerings in areas such as arbitration, mediation, and expert witness testimony.
• Growth in Restructuring and Turnaround Services: Economic uncertainty and industry disruptions often lead to increased demand for restructuring and turnaround services. FTI Consulting's Corporate Finance & Restructuring segment can leverage its expertise to assist distressed companies in navigating financial challenges and implementing strategic transformations. The restructuring market fluctuates with economic cycles, but it consistently presents opportunities for firms with strong restructuring capabilities.
• Strategic Communications in Crisis Management: The rise of social media and instant news cycles has made crisis management a critical service for businesses. FTI Consulting's Strategic Communications segment can capitalize on this trend by providing corporate reputation management and public affairs services to help clients navigate crises effectively. The market for crisis communication is growing, with companies increasingly recognizing the importance of protecting their brand and reputation.
• Leveraging Technology for Enhanced Service Delivery: Investing in advanced technologies such as artificial intelligence and machine learning can enhance FTI Consulting's service delivery capabilities and improve efficiency. By integrating these technologies into its various segments, FTI Consulting can offer more data-driven insights and solutions to clients. The adoption of AI in consulting is expected to grow significantly, providing a competitive edge to firms that embrace technological innovation.

What Opportunities Does FCN Have?

• Expansion into new geographic markets.
• Increased demand for cybersecurity and data analytics services.
• Growth in restructuring and turnaround consulting due to economic uncertainty.
• Leveraging technology to enhance service delivery and efficiency.

What Threats Does FCN Face?

• Economic downturns affecting consulting demand.
• Increased competition from other consulting firms.
• Changes in regulatory environment impacting specific industries.
• Potential for reputational damage from high-profile cases.

What Are FCN's Competitive Advantages?

• Strong brand reputation and industry expertise.
• Diversified service offerings across multiple segments.
• Global presence and extensive client network.
• Specialized knowledge in niche areas such as forensic accounting and e-discovery.

What Does FCN Do?

Founded in 1982 and headquartered in Washington, D.C., FTI Consulting, Inc. has evolved into a global business advisory firm specializing in managing change, mitigating risks, and resolving disputes. The company operates through five key segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications. The Corporate Finance & Restructuring segment provides services such as business transformation, transaction support, and turnaround and restructuring advisory. The Forensic and Litigation Consulting segment offers expertise in areas like construction solutions, data analytics, dispute resolution, health solutions, and risk investigations. The Economic Consulting segment focuses on antitrust economics, financial economics, and international arbitration. The Technology segment provides solutions for corporate legal operations, e-discovery, and information governance. Lastly, the Strategic Communications segment assists clients with corporate reputation management, financial communications, and public affairs. FTI Consulting serves a wide array of industries, including aerospace and defense, financial services, healthcare, real estate, and technology. With a global presence and a comprehensive suite of services, FTI Consulting is a prominent player in the consulting services industry.

What Products and Services Does FCN Offer?

• Provides business advisory services to manage change.
• Mitigates risks for businesses across various sectors.
• Resolves disputes through forensic and litigation consulting.
• Offers corporate finance and restructuring services.
• Provides economic consulting services, including antitrust and financial economics.
• Delivers technology solutions for e-discovery and information governance.
• Offers strategic communications services for corporate reputation management.

How Does FCN Make Money?

• Provides expert consulting services on a project basis.
• Generates revenue through billable hours and project fees.
• Serves clients across diverse industries, including aerospace, healthcare, and finance.
• Operates through five segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications.

What Industry Does FCN Operate In?

FTI Consulting operates within the consulting services industry, a sector experiencing growth driven by increasing business complexity and regulatory scrutiny. The industry is characterized by intense competition, with firms vying for market share by offering specialized expertise and innovative solutions. Market trends include a rising demand for digital transformation consulting, cybersecurity services, and risk management advisory. FTI Consulting's diversified service portfolio and global reach position it favorably to capitalize on these trends. Competitors include firms like KEX: Kirby Corporation and MSA: MSA Safety Incorporated, each with unique strengths and specializations.

Who Are FCN's Key Customers?

• Aerospace and defense companies.
• Financial services institutions.
• Healthcare and life sciences organizations.
• Retail and consumer products companies.
• Telecom, media, and technology firms.

Net buyingInsider Activity

Over the past six months, FTI Consulting, Inc. insiders filed 15 SEC Form 4 transactions — 2 sales and 13 purchases. On net that is roughly 28K shares acquired (about $2.1M) — insiders putting money in tends to read as conviction.

FCN Valuation & Market Position

With a $4.66B market cap, FTI Consulting, Inc. sits in the mid-cap segment of the market. Relative to its peer group, FCN's quantitative score of 81/100 is above the peer average of 69/100.

ROE 15%Key Financial Metrics

Return on equity for FTI Consulting, Inc. stands at 15.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 7.6%, showing how much profit it generates from its asset base. FCN trades at a trailing price-to-earnings ratio of 18.25, below the Industrials sector average of ~30x. Its free cash flow yield is 7.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.30 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.7%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 7/9Financial Health

FTI Consulting, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 4.00 places it in the safe zone, indicating low near-term bankruptcy risk.

FY2026 estForward Outlook

Wall Street analysts project FTI Consulting, Inc. revenue of about $4.03B for fiscal 2026, with EPS near $9.26.

Company Profile

FTI Consulting, Inc. operates in the Consulting Services industry within the Industrials sector. It is headquartered in Washington, US. The company is led by CEO Steven H. Gunby. FCN has traded publicly since 1996.

FCN Financials

FCN Latest News

FCN Analyst Consensus

FCN MoonshotScore

Latest FTI Consulting, Inc. Analysis

What Investors Ask About FTI Consulting, Inc. (FCN) — Industrials

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources