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Examining the Quality Attributes of NYSE:FICO.

By Mill Chart

Last update: Dec 1, 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.

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

  • Over the past 5 years, FAIR ISAAC CORP has experienced impressive revenue growth, with 8.64% 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 169.0%, 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.
  • FAIR ISAAC CORP maintains a healthy Debt/Free Cash Flow Ratio of 4.06, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • With a favorable Profit Quality (5-year) ratio of 123.0%, FAIR ISAAC CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • FAIR ISAAC CORP has experienced impressive EBIT growth over the past 5 years, with 29.58% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • FAIR ISAAC CORP has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall FICO gets a fundamental rating of 6 out of 10. We evaluated FICO against 280 industry peers in the Software industry. FICO scores excellent on profitability, but there are some minor concerns on its financial health. FICO is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make FICO suitable for growth investing!

Check the latest full fundamental report of FICO for a complete fundamental analysis.

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

Disclaimer

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.

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FAIR ISAAC CORP

NYSE:FICO (2/23/2024, 4:04:27 PM)

After market: 1282.33 0 (0%)

1282.33

-5.93 (-0.46%)

FICO News

News Image2 days ago - FICOPremier Lending Inc. Adopts FICO Score 10 T for Loan Originations and Whole Loan Investment Fund
News Image10 days ago - FICOPrimis Mortgage Company, Subsidiary of Primis Bank, Becomes First Banked Owned Originator to Adopt FICO® Score 10 T to Increase Access to Homeownership
News Image11 days ago - FICOFICO World 2024 to Spotlight Businesses Leading the “Intelligence Revolution”
News Image13 days ago - The Motley FoolBig Tech: AI, Devices, and Dividends

Plus Fair Isaac Corp.'s CEO talks about why investors should focus on more than just the company's scoring business, and the way AI and buy now, pay later are affecting the credit industry.

News Imagea month ago - Market News VideoFriday Sector Laggards: Technology & Communications, Industrial
News Imagea month ago - Investor's Business DailyStock Market Continues To Rally; ASML, Netflix, Tesla, Intel Are Big Earnings Movers: Weekly Review

The S&P 500 and Dow Jones hit fresh record highs on Friday.

News Imagea month ago - FICOFICO Announces Earnings of $4.80 per Share for First Quarter Fiscal 2024
News Imagea month ago - Seeking AlphaFICO announces new stock buyback of up to $500 million (NYSE:FICO)

FICO announces approval for a stock repurchase program, allowing them to acquire up to $500 million of their outstanding stock.

News Imagea month ago - FICOFICO Announces New Stock Repurchase Program on January 24, 2024
News Imagea month ago - Market News VideoNotable Monday Option Activity: DVN, FICO, RCL
News Imagea month ago - FICOFair Isaac Corporation Announces Date for Reporting of First Quarter Fiscal 2024 Financial Results
News Imagea month ago - InvestorPlacePre-Earnings Power Plays: 7 Stocks to Buy Before They Report Next Week

There's a lot riding on this quarter's earnings season, but don't fall prey to cyclical stocks that suffer most from bad news.

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