April 11, 2019

NCI – Market expectations are for NCI to see slight improvements in Uniform ROA, although it is still projected to be below recent averages, due to their recent value-destructive divestiture


  • Navigant Consulting, Inc. (NCI:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 15.6x Uniform P/E. Even at these levels, the market is pricing in expectations for Uniform ROA to improve from a low of 9% in 2018 to 11% in 2023
  • Specifically, markets appear optimistic about the competitive position of the firm’s remaining industry segments and the potential to drive top-line growth. However, they may be skeptical of the benefits of a simplified portfolio and increased revenue visibility outweighing the drawbacks of their Thoreau divestiture and pessimistic about the associated loss of the high-margin Disputes, Forensics & Legal Technology segment
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