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FTI Consulting Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

FTI Consulting has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for FTI Consulting's Piotroski F-Score or its related term are showing as below:

NYSE:FCN' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 8
Current: 6

2
8

During the past 13 years, the highest Piotroski F-Score of FTI Consulting was 8. The lowest was 2. And the median was 6.


FTI Consulting Piotroski F-Score Historical Data

The historical data trend for FTI Consulting's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

FTI Consulting Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 8.00 7.00 5.00

FTI Consulting Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 5.00 4.00 6.00

Competitive Comparison

For the Consulting Services subindustry, FTI Consulting's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

FTI Consulting Piotroski F-Score Distribution

For the Business Services industry and Industrials sector, FTI Consulting's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where FTI Consulting's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun21) TTM:Last Year (Jun20) TTM:
Net Income was 50.172 + 55.589 + 64.496 + 62.782 = $233 Mil.
Cash Flow from Operations was 111.563 + 186.092 + -166.584 + 125.558 = $257 Mil.
Revenue was 622.249 + 626.581 + 686.277 + 711.486 = $2,647 Mil.
Gross Profit was 205.07 + 186.307 + 217.853 + 220.764 = $830 Mil.
Average Total Assets from the begining of this year (Jun20)
to the end of this year (Jun21) was
(2704.907 + 2794.398 + 2777.363 + 2778.2 + 2938.427) / 5 = $2798.659 Mil.
Total Assets at the begining of this year (Jun20) was $2,705 Mil.
Long-Term Debt & Capital Lease Obligation was $622 Mil.
Total Current Assets was $1,213 Mil.
Total Current Liabilities was $563 Mil.
Net Income was 60.422 + 29.061 + 56.747 + 48.174 = $194 Mil.

Revenue was 593.106 + 602.218 + 604.593 + 607.852 = $2,408 Mil.
Gross Profit was 212.214 + 183.546 + 202.346 + 194.841 = $793 Mil.
Average Total Assets from the begining of last year (Jun19)
to the end of last year (Jun20) was
(2571.363 + 2690.269 + 2783.142 + 2637.181 + 2704.907) / 5 = $2677.3724 Mil.
Total Assets at the begining of last year (Jun19) was $2,571 Mil.
Long-Term Debt & Capital Lease Obligation was $478 Mil.
Total Current Assets was $1,127 Mil.
Total Current Liabilities was $517 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

FTI Consulting's current Net Income (TTM) was 233. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

FTI Consulting's current Cash Flow from Operations (TTM) was 257. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun20)
=233.039/2704.907
=0.08615416

ROA (Last Year)=Net Income/Total Assets (Jun19)
=194.404/2571.363
=0.07560348

FTI Consulting's return on assets of this year was 0.08615416. FTI Consulting's return on assets of last year was 0.07560348. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

FTI Consulting's current Net Income (TTM) was 233. FTI Consulting's current Cash Flow from Operations (TTM) was 257. ==> 257 > 233 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=621.714/2798.659
=0.22214711

Gearing (Last Year: Jun20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun19 to Jun20
=477.561/2677.3724
=0.17836928

FTI Consulting's gearing of this year was 0.22214711. FTI Consulting's gearing of last year was 0.17836928. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun21)=Total Current Assets/Total Current Liabilities
=1213.462/562.562
=2.15702803

Current Ratio (Last Year: Jun20)=Total Current Assets/Total Current Liabilities
=1127.341/517.468
=2.17857143

FTI Consulting's current ratio of this year was 2.15702803. FTI Consulting's current ratio of last year was 2.17857143. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

FTI Consulting's number of shares in issue this year was 35.374. FTI Consulting's number of shares in issue last year was 37.852. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=829.994/2646.593
=0.31360848

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=792.947/2407.769
=0.32932852

FTI Consulting's gross margin of this year was 0.31360848. FTI Consulting's gross margin of last year was 0.32932852. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun20)
=2646.593/2704.907
=0.9784414

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun19)
=2407.769/2571.363
=0.93637849

FTI Consulting's asset turnover of this year was 0.9784414. FTI Consulting's asset turnover of last year was 0.93637849. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+1+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

FTI Consulting has an F-score of 6 indicating the company's financial situation is typical for a stable company.

FTI Consulting  (NYSE:FCN) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


FTI Consulting Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of FTI Consulting's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


FTI Consulting Business Description

FTI Consulting logo
Industry
Industrials » Business Services NAICS : 541611 SIC : 8742
Traded in Other Exchanges
Address
555 12th Street North West, Suite 700, Washington, DC, USA, 20004
FTI Consulting Inc is a firm that generates its sales by providing professional business advisory services to customers. The company operates through five segments, namely corporate finance and restructuring, forensic and litigation consulting, economic consulting, technology, and strategic communications. Customers of the company come from a wide array of sectors, including construction, energy and power, environmental, financial institutions, healthcare and life science, insurance, real estate and infrastructure, retail and consumer products, telecom, media, and technology. The majority of the company's revenue is derived from serving customers in the United States.
Executives
Bacon Brenda J director 909 COMMERCE ROAD ANNAPOLIS MD 21403
Costamagna Claudio director VIA SEBETO 4 MILANO L6 20123
Seeger Laureen director C/O MCKESSON CORPORATION ONE POST STREET - 33RD FLOOR SAN FRANCISCO CA 94104
Bartlett Mark S. director 4701 WEST GREENFIELD AVENUE MILWAUKEE WI 53214
Fanandakis Nicholas C director 1007 MARKET STREET WILMINGTON DE 19898
Ellis Vernon James director 49 QUEENS GATE TERRACE LONDON X0 SW7 5PN
Holthaus Gerard E director 3129 BLENDON ROAD OWINGS MILLS MD 21117
Paul Holly officer: Chief Human Resources Officer 6016 KINGSFORD ROAD BETHESDA MD 20817
Keating Brendan J officer: CAO and Controller C/O FTI CONSULTING INC 555 12TH STREET NW WASHINGTON DC 20004
Sabherwal Ajay officer: Chief Financial Officer C/O FAIRPOINT COMMUNICATIONS, INC. 521 E. MOREHEAD STREET, SUITE 500 CHARLOTTE NC 28202
Linton Paul Alderman officer: Chief Strategy/Transf. Officer 5915 SONOMA ROAD BETHESDA MD 20817
Lu Curtis P officer: General Counsel 1203 STONNELL PLACE ALEXANDRIA VA 22302
Gunby Steven Henry director, officer: President & CEO 9508 HEMSWELL PLACE POTOMAC MD 20854
Pachman Matthew officer: VP, Chief Risk/Ethics Officer 4807 JAMESTOWN ROAD BETHESDA MD 20816
Freeman Catherine M officer: SVP, Controller and CAO 909 COMMERCE ROAD ANNAPOLIS MD 21401

FTI Consulting Headlines

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