Consulting services

10 companies · $43.3B combined revenue · $5.6B operating profit

The typical US-listed consulting services company grew revenue 3.9% and earnings -3% in its latest year, at a 12.6% operating margin, and 8 of 9 earn a return on capital above 15%. Figures from each company's latest annual filing with the SEC, refreshed daily.

3.9%Median revenue growth
-3%Median earnings growth
6.6%Median revenue growth, 3 yrs
6.6%Median earnings growth, 3 yrs
12.6%Median operating margin
18.9%Median ROCE

Growth engines: the 4 Cylinders

All four working: 0% of companies

A company's earnings per share can grow in only four ways: more sales, profits growing faster than sales (operating leverage), wider margins, and less debt. Each bar is the share of companies where that engine worked in their latest year.

  • Sales growth · Revenue up 10% or more10%
  • Operating leverage · Operating income growing faster than a growing revenue50%
  • Margin expansion · Operating margin up 1 point or more10%
  • Debt reduction · Debt down 5% or more, or net cash0%

Combined revenue · 9 companies reporting in US dollars

Revenue
$0$20B$40B$60BFY21FY22FY23FY24FY25

Combined operating margin

Operating margin
0%5%10%15%FY21FY22FY23FY24FY25

All 10 companies

Median–3.9%-3%12.6%18.9%1.01x
RELXRELXGBP 9.6B1.7%▼6.9%▲31.6%▲34.6%▲3.07x▼
VRSKVerisk Analytics$3.1B6.6%▲-5.2%▼43.7%▲34.5%▲20x▼
ITGartner$6.5B3.7%▼-41.8%▼15.8%▲25.6%▲9.32x▼
RTORentokil Initial$6.9B4.4%▲19.9%▲8.5%▼–1.01x
BAHBooz Allen Hamilton$11.2B-6.4%▼-9%▼9.2%▼18.9%3.57x▼
GGenpact$5.1B6.6%▲7.6%▲14.8%▲17.7%▼0.60x▲
FCNFti Consulting$3.8B2.4%▼-3.3%▼10.3%▼15.5%▼0.21x▲
EXPOExponent$582M4.2%▲-2.7%▲20.6%▲20%▲–
HURNHuron Consulting$1.7B11.7%▲-9.9%▼10.5%▼15.6%▼0.96x▲
VVXV2X$4.5B3.7%▼125%▲4.3%▼8.6%▼1.01x▲

▲ better than the median, ▼ worse. n/a: the ratio doesn't apply to that kind of business (e.g. a bank's operating margin). Sort by any column. Figures from each company's latest 10-K (or 20-F/40-F).