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Should you consider FAIR ISAAC CORP (NYSE:FICO) for quality investing?

By Mill Chart

Last update: Aug 28, 2023

In this article we will dive into FAIR ISAAC CORP (NYSE:FICO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed FAIR ISAAC CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:FICO highlighted

  • FAIR ISAAC CORP has achieved substantial revenue growth over the past 5 years, with a 8.12% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • The ROIC excluding cash and goodwill of FAIR ISAAC CORP stands at 197.0%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • The Debt/Free Cash Flow Ratio of FAIR ISAAC CORP stands at 4.39, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • FAIR ISAAC CORP exhibits impressive Profit Quality (5-year) with a 132.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • With a robust 5-year EBIT growth of 24.45%, FAIR ISAAC CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • FAIR ISAAC CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental analysis of NYSE:FICO

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Overall FICO gets a fundamental rating of 6 out of 10. We evaluated FICO against 286 industry peers in the Software industry. FICO scores excellent on profitability, but there are some minor concerns on its financial health. FICO is growing strongly while it is still valued neutral. This is a good combination! This makes FICO very considerable for growth investing!

For an up to date full fundamental analysis you can check the fundamental report of FICO

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



NYSE:FICO (11/30/2023, 5:40:00 PM)

After market: 1087.64 0.04 (0%)


+12.5 (+1.16%)


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