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These Fundamentals Make FTI Consulting, Inc. (NYSE:FCN) Truly Worth Looking At

Simply Wall St

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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on FTI Consulting, Inc. (NYSE:FCN) due to its excellent fundamentals in more than one area. FCN is a company with great financial health as well as a a great history of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on FTI Consulting here.

Flawless balance sheet with proven track record

FCN has a strong track record of performance. In the previous year, FCN delivered an impressive double-digit return of 7.9% Unsurprisingly, FCN surpassed the industry return of 6.5%, which gives us more confidence of the company's capacity to drive earnings going forward. FCN's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that FCN has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. FCN appears to have made good use of debt, producing operating cash levels of 0.42x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NYSE:FCN Income Statement, May 13th 2019

Next Steps:

For FTI Consulting, I've compiled three fundamental aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for FCN’s future growth? Take a look at our free research report of analyst consensus for FCN’s outlook.
  2. Valuation: What is FCN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether FCN is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FCN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.