FACTSET RESEARCH SYSTEMS INC (FDS)

US3030751057 - Common Stock

404.26  -2.23 (-0.55%)

After market: 404.26 0 (0%)

Fundamental Rating

6

Overall FDS gets a fundamental rating of 6 out of 10. We evaluated FDS against 212 industry peers in the Capital Markets industry. FDS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FDS is quite expensive at the moment. It does show a decent growth rate. This makes FDS very considerable for quality investing!



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8

1. Profitability

1.1 Basic Checks

FDS had positive earnings in the past year.
FDS had a positive operating cash flow in the past year.
In the past 5 years FDS has always been profitable.
In the past 5 years FDS always reported a positive cash flow from operatings.

1.2 Ratios

FDS has a better Return On Assets (12.26%) than 91.90% of its industry peers.
FDS has a Return On Equity of 27.16%. This is amongst the best in the industry. FDS outperforms 92.86% of its industry peers.
With an excellent Return On Invested Capital value of 16.46%, FDS belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
FDS had an Average Return On Invested Capital over the past 3 years of 16.61%. This is significantly above the industry average of 8.44%.
Industry RankSector Rank
ROA 12.26%
ROE 27.16%
ROIC 16.46%
ROA(3y)13.22%
ROA(5y)16.03%
ROE(3y)32.68%
ROE(5y)38.42%
ROIC(3y)16.61%
ROIC(5y)19.64%

1.3 Margins

With a Profit Margin value of 22.72%, FDS perfoms like the industry average, outperforming 55.71% of the companies in the same industry.
FDS's Profit Margin has improved in the last couple of years.
FDS has a Operating Margin (31.81%) which is comparable to the rest of the industry.
FDS's Operating Margin has improved in the last couple of years.
The Gross Margin of FDS (53.01%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FDS has grown nicely.
Industry RankSector Rank
OM 31.81%
PM (TTM) 22.72%
GM 53.01%
OM growth 3Y2.2%
OM growth 5Y2.98%
PM growth 3Y-3.47%
PM growth 5Y2.56%
GM growth 3Y-1.13%
GM growth 5Y5.27%

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7

2. Health

2.1 Basic Checks

Compared to 1 year ago, FDS has about the same amount of shares outstanding.
FDS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FDS has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 6.07 indicates that FDS is not in any danger for bankruptcy at the moment.
The Altman-Z score of FDS (6.07) is better than 88.57% of its industry peers.
The Debt to FCF ratio of FDS is 2.44, which is a good value as it means it would take FDS, 2.44 years of fcf income to pay off all of its debts.
FDS has a Debt to FCF ratio of 2.44. This is in the better half of the industry: FDS outperforms 76.19% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that FDS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.83, FDS is in line with its industry, outperforming 56.19% of the companies in the same industry.
Although FDS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 2.44
Altman-Z 6.07
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

FDS has a Current Ratio of 1.79. This is a normal value and indicates that FDS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.79, FDS is in the better half of the industry, outperforming 66.19% of the companies in the same industry.
FDS has a Quick Ratio of 1.79. This is a normal value and indicates that FDS is financially healthy and should not expect problems in meeting its short term obligations.
FDS has a better Quick ratio (1.79) than 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.79
Quick Ratio 1.79

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5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 2.59% over the past year.
Measured over the past years, FDS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.18% on average per year.
Looking at the last year, FDS shows a small growth in Revenue. The Revenue has grown by 7.26% in the last year.
The Revenue has been growing by 9.09% on average over the past years. This is quite good.
EPS 1Y (TTM)2.59%
EPS 3Y10.11%
EPS 5Y11.18%
EPS Q2Q%11.05%
Revenue 1Y (TTM)7.26%
Revenue growth 3Y11.76%
Revenue growth 5Y9.09%
Sales Q2Q%5.99%

3.2 Future

Based on estimates for the next years, FDS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.03% on average per year.
Based on estimates for the next years, FDS will show a small growth in Revenue. The Revenue will grow by 6.11% on average per year.
EPS Next Y11.25%
EPS Next 2Y10.38%
EPS Next 3Y10.33%
EPS Next 5Y10.03%
Revenue Next Year5.6%
Revenue Next 2Y5.9%
Revenue Next 3Y6.19%
Revenue Next 5Y6.11%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 26.84, which means the current valuation is very expensive for FDS.
FDS's Price/Earnings ratio is a bit more expensive when compared to the industry. FDS is more expensive than 72.38% of the companies in the same industry.
When comparing the Price/Earnings ratio of FDS to the average of the S&P500 Index (28.05), we can say FDS is valued inline with the index average.
With a Price/Forward Earnings ratio of 22.87, FDS is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FDS indicates a slightly more expensive valuation: FDS is more expensive than 69.05% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FDS to the average of the S&P500 Index (20.07), we can say FDS is valued inline with the index average.
Industry RankSector Rank
PE 26.84
Fwd PE 22.87

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FDS indicates a somewhat cheap valuation: FDS is cheaper than 63.33% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as FDS.
Industry RankSector Rank
P/FCF 25.29
EV/EBITDA 20.66

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FDS does not grow enough to justify the current Price/Earnings ratio.
FDS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.39
PEG (5Y)2.4
EPS Next 2Y10.38%
EPS Next 3Y10.33%

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5

5. Dividend

5.1 Amount

FDS has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.08, FDS is paying slightly less dividend.
With a Dividend Yield of 1.02, FDS pays less dividend than the S&P500 average, which is at 2.37.
Industry RankSector Rank
Dividend Yield 1.02%

5.2 History

The dividend of FDS is nicely growing with an annual growth rate of 9.49%!
FDS has been paying a dividend for at least 10 years, so it has a reliable track record.
FDS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.49%
Div Incr Years18
Div Non Decr Years18

5.3 Sustainability

29.69% of the earnings are spent on dividend by FDS. This is a low number and sustainable payout ratio.
FDS's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP29.69%
EPS Next 2Y10.38%
EPS Next 3Y10.33%

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FACTSET RESEARCH SYSTEMS INC

NYSE:FDS (5/31/2024, 7:04:00 PM)

After market: 404.26 0 (0%)

404.26

-2.23 (-0.55%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.41B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.02%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 26.84
Fwd PE 22.87
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.39
PEG (5Y)2.4
Profitability
Industry RankSector Rank
ROA 12.26%
ROE 27.16%
ROCE
ROIC
ROICexc
ROICexgc
OM 31.81%
PM (TTM) 22.72%
GM 53.01%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.79
Quick Ratio 1.79
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.59%
EPS 3Y10.11%
EPS 5Y
EPS Q2Q%
EPS Next Y11.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.26%
Revenue growth 3Y11.76%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y