FACTSET RESEARCH SYSTEMS INC (FDS) Stock Fundamental Analysis
NYSE:FDS - New York Stock Exchange, Inc. - US3030751057 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FDS. FDS was compared to 233 industry peers in the Capital Markets industry. While FDS has a great profitability rating, there are some minor concerns on its financial health. FDS is valied quite expensively at the moment, while it does show a decent growth rate.
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.
FDS had positive earnings in each of the past 5 years.
FDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FDS has a Return On Assets of 12.28%. This is amongst the best in the industry. FDS outperforms 92.70% of its industry peers.
With an excellent Return On Equity value of 24.73%, FDS belongs to the best of the industry, outperforming 92.70% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.95%, FDS belongs to the best of the industry, outperforming 89.70% of the companies in the same industry.
FDS had an Average Return On Invested Capital over the past 3 years of 14.84%. This is significantly above the industry average of 7.84%.
The last Return On Invested Capital (14.95%) for FDS is above the 3 year average (14.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.28% | ||
| ROE | 24.73% | ||
| ROIC | 14.95% |
ROA(3y)11.65%
ROA(5y)14.16%
ROE(3y)28.93%
ROE(5y)33.54%
ROIC(3y)14.84%
ROIC(5y)16.9%
1.3 Margins
The Profit Margin of FDS (23.30%) is better than 66.09% of its industry peers.
In the last couple of years the Profit Margin of FDS has remained more or less at the same level.
Looking at the Operating Margin, with a value of 30.71%, FDS is in line with its industry, outperforming 54.94% of the companies in the same industry.
In the last couple of years the Operating Margin of FDS has remained more or less at the same level.
FDS has a Gross Margin (53.33%) which is in line with its industry peers.
In the last couple of years the Gross Margin of FDS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.71% | ||
| PM (TTM) | 23.3% | ||
| GM | 53.33% |
OM growth 3Y2.47%
OM growth 5Y0.98%
PM growth 3Y-0.98%
PM growth 5Y-0.16%
GM growth 3Y2.24%
GM growth 5Y0.11%
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
FDS has a debt to FCF ratio of 2.48. This is a good value and a sign of high solvency as FDS would need 2.48 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.48, FDS belongs to the best of the industry, outperforming 81.55% of the companies in the same industry.
A Debt/Equity ratio of 0.66 indicates that FDS is somewhat dependend on debt financing.
FDS's Debt to Equity ratio of 0.66 is fine compared to the rest of the industry. FDS outperforms 64.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.48 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
FDS has a Current Ratio of 1.47. 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 1.47, FDS is in line with its industry, outperforming 59.23% of the companies in the same industry.
A Quick Ratio of 1.47 indicates that FDS should not have too much problems paying its short term obligations.
FDS has a Quick ratio of 1.47. This is comparable to the rest of the industry: FDS outperforms 59.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
FDS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.52%.
The Earnings Per Share has been growing by 10.47% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.07% in the past year.
The Revenue has been growing by 8.95% on average over the past years. This is quite good.
EPS 1Y (TTM)6.52%
EPS 3Y14.53%
EPS 5Y10.47%
EPS Q2Q%-2.29%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y11.45%
Revenue growth 5Y8.95%
Sales Q2Q%5.94%
3.2 Future
The Earnings Per Share is expected to grow by 8.16% on average over the next years. This is quite good.
Based on estimates for the next years, FDS will show a small growth in Revenue. The Revenue will grow by 5.66% on average per year.
EPS Next Y4.8%
EPS Next 2Y6.08%
EPS Next 3Y6.75%
EPS Next 5Y8.16%
Revenue Next Year5.52%
Revenue Next 2Y5.63%
Revenue Next 3Y5.56%
Revenue Next 5Y5.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FDS is valuated quite expensively with a Price/Earnings ratio of 26.87.
FDS's Price/Earnings ratio is a bit more expensive when compared to the industry. FDS is more expensive than 66.52% of the companies in the same industry.
FDS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 24.19 indicates a rather expensive valuation of FDS.
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 63.52% 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 (21.76), we can say FDS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.87 | ||
| Fwd PE | 24.19 |
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 71.67% of the companies listed in the same industry.
FDS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.47 | ||
| EV/EBITDA | 20.46 |
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)5.6
PEG (5Y)2.57
EPS Next 2Y6.08%
EPS Next 3Y6.75%
5. Dividend
5.1 Amount
FDS has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 8.00, FDS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.42, FDS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
The dividend of FDS is nicely growing with an annual growth rate of 8.63%!
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)8.63%
Div Incr Years25
Div Non Decr Years25
5.3 Sustainability
FDS pays out 29.59% of its income as dividend. This is a sustainable payout ratio.
The dividend of FDS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.59%
EPS Next 2Y6.08%
EPS Next 3Y6.75%
447.71
-2.59 (-0.58%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners95.35%
Inst Owner Change-0.09%
Ins Owners0.22%
Ins Owner Change0.36%
Market Cap16.99B
Analysts52.86
Price Target450.06 (0.52%)
Short Float %3.6%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend3.97
Dividend Growth(5Y)8.63%
DP29.59%
Div Incr Years25
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.14%
Min EPS beat(2)-1.55%
Max EPS beat(2)1.83%
EPS beat(4)3
Avg EPS beat(4)1%
Min EPS beat(4)-1.55%
Max EPS beat(4)2.27%
EPS beat(8)5
Avg EPS beat(8)0.55%
EPS beat(12)8
Avg EPS beat(12)1.39%
EPS beat(16)11
Avg EPS beat(16)2.74%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)-0.13%
Revenue beat(4)1
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-0.98%
Max Revenue beat(4)1.79%
Revenue beat(8)1
Avg Revenue beat(8)-0.42%
Revenue beat(12)2
Avg Revenue beat(12)-0.46%
Revenue beat(16)6
Avg Revenue beat(16)-0.18%
PT rev (1m)-1.12%
PT rev (3m)-4.45%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.87 | ||
| Fwd PE | 24.19 | ||
| P/S | 7.43 | ||
| P/FCF | 29.47 | ||
| P/OCF | 25.09 | ||
| P/B | 7.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.46 |
EPS(TTM)16.66
EY3.72%
EPS(NY)18.51
Fwd EY4.13%
FCF(TTM)15.19
FCFY3.39%
OCF(TTM)17.85
OCFY3.99%
SpS60.26
BVpS56.79
TBVpS-27.77
PEG (NY)5.6
PEG (5Y)2.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.28% | ||
| ROE | 24.73% | ||
| ROCE | 18.39% | ||
| ROIC | 14.95% | ||
| ROICexc | 16.53% | ||
| ROICexgc | 231.49% | ||
| OM | 30.71% | ||
| PM (TTM) | 23.3% | ||
| GM | 53.33% | ||
| FCFM | 25.21% |
ROA(3y)11.65%
ROA(5y)14.16%
ROE(3y)28.93%
ROE(5y)33.54%
ROIC(3y)14.84%
ROIC(5y)16.9%
ROICexc(3y)17.3%
ROICexc(5y)22.8%
ROICexgc(3y)672.42%
ROICexgc(5y)448.23%
ROCE(3y)18.25%
ROCE(5y)20.78%
ROICexcg growth 3Y123.88%
ROICexcg growth 5Y43.1%
ROICexc growth 3Y-15.06%
ROICexc growth 5Y-11.86%
OM growth 3Y2.47%
OM growth 5Y0.98%
PM growth 3Y-0.98%
PM growth 5Y-0.16%
GM growth 3Y2.24%
GM growth 5Y0.11%
F-Score6
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.48 | ||
| Debt/EBITDA | 1.62 | ||
| Cap/Depr | 56.09% | ||
| Cap/Sales | 4.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.78% | ||
| Profit Quality | 108.18% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | N/A |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)46.21%
Cap/Depr(5y)54.56%
Cap/Sales(3y)3.19%
Cap/Sales(5y)3.73%
Profit Quality(3y)120.69%
Profit Quality(5y)120.1%
High Growth Momentum
Growth
EPS 1Y (TTM)6.52%
EPS 3Y14.53%
EPS 5Y10.47%
EPS Q2Q%-2.29%
EPS Next Y4.8%
EPS Next 2Y6.08%
EPS Next 3Y6.75%
EPS Next 5Y8.16%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y11.45%
Revenue growth 5Y8.95%
Sales Q2Q%5.94%
Revenue Next Year5.52%
Revenue Next 2Y5.63%
Revenue Next 3Y5.56%
Revenue Next 5Y5.66%
EBIT growth 1Y-1.81%
EBIT growth 3Y14.2%
EBIT growth 5Y10.02%
EBIT Next Year13.16%
EBIT Next 3Y8.72%
EBIT Next 5Y7.5%
FCF growth 1Y2.11%
FCF growth 3Y7.56%
FCF growth 5Y10.82%
OCF growth 1Y5.62%
OCF growth 3Y8.05%
OCF growth 5Y10.39%