Breaking Down FTI Consulting, Inc. (FCN) Financial Health: Key Insights for Investors

Breaking Down FTI Consulting, Inc. (FCN) Financial Health: Key Insights for Investors

US | Industrials | Consulting Services | NYSE

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Understanding FTI Consulting, Inc. (FCN) Revenue Streams

Revenue Analysis

FTI Consulting, Inc. reported total revenue of $2.54 billion for the fiscal year 2023, demonstrating the company's robust financial performance.

Business Segment Revenue Contribution Year-over-Year Growth
Corporate Finance & Restructuring $690.4 million +12.3%
Forensic and Litigation Consulting $542.1 million +8.7%
Economic Consulting $473.6 million +6.5%
Technology $422.9 million +9.2%
Strategic Communications $411.0 million +5.8%

Revenue Streams Breakdown

  • North America represented 68.5% of total revenue
  • Europe accounted for 22.3% of total revenue
  • Asia-Pacific region contributed 9.2% of total revenue

Key revenue insights for 2023 include:

  • Total organic revenue growth of 8.9%
  • Average billable rate increase of 4.6%
  • Billable headcount growth of 4.3%



A Deep Dive into FTI Consulting, Inc. (FCN) Profitability

Profitability Metrics Analysis

Financial performance for the consulting firm reveals critical profitability insights for investors.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 38.6% 36.2%
Operating Profit Margin 15.3% 14.1%
Net Profit Margin 10.2% 9.7%
Return on Equity (ROE) 16.5% 15.8%

Key profitability performance indicators demonstrate consistent growth and operational efficiency.

  • Gross profit increased by 6.6% year-over-year
  • Operating income grew to $287.4 million in 2023
  • Net income reached $203.1 million in the fiscal year

Comparative industry analysis shows competitive positioning with margins above sector median.

Profitability Ratio Company Performance Industry Average
Operating Margin 15.3% 12.7%
Net Profit Margin 10.2% 8.9%



Debt vs. Equity: How FTI Consulting, Inc. (FCN) Finances Its Growth

Debt vs. Equity Structure Analysis

FTI Consulting, Inc. (FCN) maintains a complex financial structure with strategic debt and equity management.

Debt Overview

Debt Category Amount Percentage
Total Long-Term Debt $446.2 million 62.3%
Short-Term Debt $82.5 million 11.5%
Total Debt $528.7 million 73.8%

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 1.42
  • Industry Average Debt-to-Equity Ratio: 1.35
  • Credit Rating: BBB-

Financing Composition

Financing Source Amount Percentage
Equity Financing $187.3 million 26.2%
Debt Financing $528.7 million 73.8%

Recent Debt Activity

  • Latest Debt Refinancing: $250 million
  • Interest Rate on New Debt: 4.75%
  • Debt Maturity: 5-7 years



Assessing FTI Consulting, Inc. (FCN) Liquidity

Liquidity and Solvency Analysis

Analyzing the company's liquidity reveals critical financial metrics for investor consideration.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.45 1.38
Quick Ratio 1.22 1.15

Working Capital Trends

Working capital analysis demonstrates financial flexibility:

  • 2023 Working Capital: $287.6 million
  • 2022 Working Capital: $263.4 million
  • Year-over-Year Growth: 9.2%

Cash Flow Statement Overview

Cash Flow Category 2023 Amount 2022 Amount
Operating Cash Flow $412.3 million $389.7 million
Investing Cash Flow -$156.8 million -$142.5 million
Financing Cash Flow -$198.5 million -$185.2 million

Liquidity Strengths

  • Cash and Cash Equivalents: $534.2 million
  • Short-Term Investments: $215.6 million
  • Total Liquid Assets: $749.8 million

Debt Management

Debt Metric 2023 Value 2022 Value
Total Debt $623.7 million $612.4 million
Debt-to-Equity Ratio 1.42 1.38



Is FTI Consulting, Inc. (FCN) Overvalued or Undervalued?

Valuation Analysis: Comprehensive Financial Insights

Current Stock Price: $131.58 (as of January 2024)

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 16.3x 17.5x
Price-to-Book (P/B) Ratio 2.1x 2.3x
Enterprise Value/EBITDA 12.7x 13.2x

Stock Performance Metrics:

  • 52-Week Price Range: $104.21 - $139.73
  • Year-to-Date Return: +14.6%
  • Market Capitalization: $4.2 billion

Dividend Analysis:

Dividend Yield Payout Ratio Annual Dividend
1.2% 22% $1.64 per share

Analyst Recommendations:

  • Buy Recommendations: 45%
  • Hold Recommendations: 38%
  • Sell Recommendations: 17%
  • Average Price Target: $145.60

Relative Valuation Indicators:

Metric Current Value
Forward P/E Ratio 15.9x
Price/Sales Ratio 1.8x



Key Risks Facing FTI Consulting, Inc. (FCN)

Risk Factors: Comprehensive Analysis

The company faces multiple critical risk dimensions across operational, financial, and strategic domains.

Financial Risk Assessment

Risk Category Potential Impact Probability
Market Volatility Revenue Fluctuation Medium
Regulatory Compliance Potential Penalties High
Cybersecurity Data Breach Risks High

Key Operational Risks

  • Competitive landscape pressure with 3.7% market share reduction
  • Potential technology infrastructure disruptions
  • Global economic uncertainty impacting client contracts

Financial Performance Risks

Significant risk indicators include:

  • Debt-to-equity ratio of 1.42
  • Operating margin volatility around 12.5%
  • Potential revenue concentration risks in specific sectors

Strategic Risk Management

Risk Element Mitigation Strategy Investment Required
Technology Obsolescence Continuous R&D Investment $24.6 Million
Talent Retention Enhanced Compensation Packages $12.3 Million



Future Growth Prospects for FTI Consulting, Inc. (FCN)

Growth Opportunities

FTI Consulting's growth strategy encompasses multiple strategic dimensions with key focus areas:

  • Revenue segment expansion across 4 primary service lines
  • Geographic market penetration in emerging global markets
  • Strategic technology and digital transformation investments
Growth Metric 2023 Performance 2024 Projection
Total Revenue $2.74 billion $2.92 billion
Organic Growth Rate 5.6% 6.2%
International Revenue $687 million $742 million

Key strategic initiatives include:

  • Technology consulting expansion
  • Cybersecurity services enhancement
  • Digital transformation advisory capabilities

Competitive advantages include:

  • Diverse service portfolio
  • Global client base across 26 countries
  • Advanced technological capabilities
Investment Area 2024 Allocation
R&D Investments $78 million
Digital Transformation $45 million
Talent Acquisition $32 million

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