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Why Quality Investors May Find FAIR ISAAC CORP (NYSE:FICO) Attractive.

By Mill Chart

Last update: Jun 5, 2024

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.

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Exploring Why NYSE:FICO Holds Appeal for Quality Investors.

  • 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.
  • FAIR ISAAC CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 114.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • FAIR ISAAC CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.37, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • 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.
  • With a robust 5-year EBIT growth of 29.58%, 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 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.

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

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

FICO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. Both the health and profitability get an excellent rating, making FICO a very profitable company, without any liquidiy or solvency issues. FICO shows excellent growth, but is valued quite expensive already. With these ratings, FICO could be worth investigating further for growth and quality investing!.

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

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

Keep in mind

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.