Should Quality-Oriented Investors Explore FAIR ISAAC CORP (NYSE:FICO)?

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.

A Deep Dive into FAIR ISAAC CORP's Quality Metrics.

• Over the past 5 years, FAIR ISAAC CORP has experienced impressive revenue growth, with 8.12% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a robust ROIC excluding cash and goodwill at 197.0%, FAIR ISAAC CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• With a favorable Debt/Free Cash Flow Ratio of 4.39, FAIR ISAAC CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• The Profit Quality (5-year) of FAIR ISAAC CORP stands at 132.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• FAIR ISAAC CORP has demonstrated consistent growth in EBIT over the past 5 years, with a strong 24.45%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• FAIR ISAAC CORP has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for NYSE:FICO?

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to FICO. FICO was compared to 283 industry peers in the Software industry. While FICO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FICO is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, FICO could be worth investigating further for growth investing!.

Our latest full fundamental report of FICO contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.