Since September 2025, FTI Consulting has been in a holding pattern, posting a small loss of 2.2% while floating around $165.02. The stock also fell short of the S&P 500’s 5.1% gain during that period.
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Why Is FTI Consulting Not Exciting?
We're sitting this one out for now. Here are three reasons why FCN doesn't excite us and a stock we'd rather own.
1. Lackluster Revenue Growth
Long-term growth is the most important, but within business services, a stretched historical view may miss new innovations or demand cycles. FTI Consulting’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 4.2% over the last two years was well below its five-year trend. 
2. Recent EPS Growth Below Our Standards
While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business.
FTI Consulting’s EPS grew at an unimpressive 6.8% compounded annual growth rate over the last two years. On the bright side, this performance was higher than its 4.2% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.
3. Free Cash Flow Margin Dropping
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
As you can see below, FTI Consulting’s margin dropped by 7.9 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. FTI Consulting’s free cash flow margin for the trailing 12 months was 2.5%.
Final Judgment
FTI Consulting isn’t a terrible business, but it isn’t one of our picks. With its shares lagging the market recently, the stock trades at 17.9× forward P/E (or $165.02 per share). Beauty is in the eye of the beholder, but we don’t really see a big opportunity at the moment. We're fairly confident there are better investments elsewhere. Let us point you toward one of Charlie Munger’s all-time favorite businesses.
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