FTI Consulting Inc. Common Stock (FCN)

FairStock Score: 56/100 — STEADY

Key Financials

Strengths

• Generates $225 million in annual free cash flow (4.0% yield on market cap)
• Solid return on equity of 13.6% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.36, providing financial flexibility

Concerns

• Trades significantly above Graham Number ($102) with negative 81% margin of safety—limited downside protection

AI Analysis

FTI Consulting Inc. Common Stock is a small-cap industrials company valued at $5.6 billion. The business generates $3.8 billion in annual revenue with a 1.4% net margin and $225 million in free cash flow. From a quality standpoint, FTI shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 3.2. On valuation, the stock is reasonably priced at 22.4x earnings, with trades above its Graham Number with a negative 81% margin. Growth dynamics show revenue growing at 10.7% and profit growth of 9.7%. Our composite FairStock Score of 56/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $225 million in annual free cash flow (4.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer