FTI Consulting Price To Earning vs. Return On Asset

FCN Stock  USD 202.52  1.20  0.59%   
Considering the key profitability indicators obtained from FTI Consulting's historical financial statements, FTI Consulting's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess FTI Consulting's ability to earn profits and add value for shareholders. As of the 30th of November 2024, Sales General And Administrative To Revenue is likely to grow to 0.25, while Price To Sales Ratio is likely to drop 1.18. At this time, FTI Consulting's Net Income Per Share is very stable compared to the past year. As of the 30th of November 2024, Income Quality is likely to grow to 0.86, though Accumulated Other Comprehensive Income is likely to grow to (142.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.460.3253
Significantly Up
Slightly volatile
Operating Profit Margin0.150.1082
Significantly Up
Slightly volatile
Pretax Profit Margin0.120.1027
Fairly Up
Slightly volatile
For FTI Consulting profitability analysis, we use financial ratios and fundamental drivers that measure the ability of FTI Consulting to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well FTI Consulting utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between FTI Consulting's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of FTI Consulting over time as well as its relative position and ranking within its peers.
  
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Is Research & Consulting Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of FTI Consulting. If investors know FTI will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about FTI Consulting listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.21)
Earnings Share
8.72
Revenue Per Share
106.211
Quarterly Revenue Growth
0.037
Return On Assets
0.0756
The market value of FTI Consulting is measured differently than its book value, which is the value of FTI that is recorded on the company's balance sheet. Investors also form their own opinion of FTI Consulting's value that differs from its market value or its book value, called intrinsic value, which is FTI Consulting's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because FTI Consulting's market value can be influenced by many factors that don't directly affect FTI Consulting's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between FTI Consulting's value and its price as these two are different measures arrived at by different means. Investors typically determine if FTI Consulting is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FTI Consulting's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

FTI Consulting Return On Asset vs. Price To Earning Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining FTI Consulting's current stock value. Our valuation model uses many indicators to compare FTI Consulting value to that of its competitors to determine the firm's financial worth.
FTI Consulting is rated below average in price to earning category among its peers. It is rated # 3 in return on asset category among its peers . The ratio of Price To Earning to Return On Asset for FTI Consulting is about  308.60 . As of the 30th of November 2024, Return On Assets is likely to drop to 0.06. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the FTI Consulting's earnings, one of the primary drivers of an investment's value.

FTI Return On Asset vs. Price To Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

FTI Consulting

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
23.33 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

FTI Consulting

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0756
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

FTI Return On Asset Comparison

FTI Consulting is currently under evaluation in return on asset category among its peers.

FTI Consulting Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in FTI Consulting, profitability is also one of the essential criteria for including it into their portfolios because, without profit, FTI Consulting will eventually generate negative long term returns. The profitability progress is the general direction of FTI Consulting's change in net profit over the period of time. It can combine multiple indicators of FTI Consulting, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-150.5 M-142.9 M
Operating Income377.6 M396.4 M
Income Before Tax358.4 M376.3 M
Total Other Income Expense Net-19.2 M-20.2 M
Net Income274.9 M288.6 M
Income Tax Expense83.5 M87.6 M
Net Income Applicable To Common Shares270.8 M284.4 M
Net Income From Continuing Ops274.9 M139.1 M
Non Operating Income Net Other4.5 M2.7 M
Interest Income5.2 M6.6 M
Net Interest Income-9.1 M-9.6 M
Change To Netincome54.4 M53.6 M
Net Income Per Share 8.10  8.51 
Income Quality 0.82  0.86 
Net Income Per E B T 0.77  0.81 

FTI Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on FTI Consulting. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of FTI Consulting position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the FTI Consulting's important profitability drivers and their relationship over time.

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When determining whether FTI Consulting offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of FTI Consulting's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Fti Consulting Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Fti Consulting Stock:
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To fully project FTI Consulting's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of FTI Consulting at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include FTI Consulting's income statement, its balance sheet, and the statement of cash flows.
Potential FTI Consulting investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although FTI Consulting investors may work on each financial statement separately, they are all related. The changes in FTI Consulting's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on FTI Consulting's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.