FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
NYSE:FICO - New York Stock Exchange, Inc. - US3032501047 - Common Stock - Currency: USD
Taking everything into account, FICO scores 7 out of 10 in our fundamental rating. FICO was compared to 283 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. These ratings could make FICO a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year FICO was profitable.
FICO had a positive operating cash flow in the past year.
Each year in the past 5 years FICO has been profitable.
In the past 5 years FICO always reported a positive cash flow from operatings.
1.2 Ratios
FICO's Return On Assets of 31.44% is amongst the best of the industry. FICO outperforms 97.53% of its industry peers.
With an excellent Return On Invested Capital value of 42.86%, FICO belongs to the best of the industry, outperforming 98.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FICO is significantly above the industry average of 12.21%.
The 3 year average ROIC (41.13%) for FICO is below the current ROIC(42.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.44% | ||
| ROE | N/A | ||
| ROIC | 42.86% |
ROA(3y)27.67%
ROA(5y)24.55%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)41.13%
ROIC(5y)35.64%
1.3 Margins
FICO has a Profit Margin of 31.36%. This is amongst the best in the industry. FICO outperforms 94.35% of its industry peers.
FICO's Profit Margin has improved in the last couple of years.
FICO's Operating Margin of 44.15% is amongst the best of the industry. FICO outperforms 98.59% of its industry peers.
In the last couple of years the Operating Margin of FICO has grown nicely.
Looking at the Gross Margin, with a value of 80.83%, FICO belongs to the top of the industry, outperforming 83.39% of the companies in the same industry.
In the last couple of years the Gross Margin of FICO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.15% | ||
| PM (TTM) | 31.36% | ||
| GM | 80.83% |
OM growth 3Y10.81%
OM growth 5Y14.35%
PM growth 3Y0.09%
PM growth 5Y12.51%
GM growth 3Y2.17%
GM growth 5Y2.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FICO is creating value.
FICO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FICO has been reduced compared to 5 years ago.
The debt/assets ratio for FICO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 15.93 indicates that FICO is not in any danger for bankruptcy at the moment.
The Altman-Z score of FICO (15.93) is better than 91.52% of its industry peers.
FICO has a debt to FCF ratio of 3.73. This is a good value and a sign of high solvency as FICO would need 3.73 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.73, FICO is in the better half of the industry, outperforming 61.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 15.93 |
ROIC/WACC3.95
WACC10.86%
2.3 Liquidity
FICO has a Current Ratio of 2.11. This indicates that FICO is financially healthy and has no problem in meeting its short term obligations.
FICO has a better Current ratio (2.11) than 63.25% of its industry peers.
FICO has a Quick Ratio of 2.11. This indicates that FICO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.11, FICO is in the better half of the industry, outperforming 64.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.06% over the past year.
FICO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.85% yearly.
Looking at the last year, FICO shows a quite strong growth in Revenue. The Revenue has grown by 14.72% in the last year.
The Revenue has been growing by 8.16% on average over the past years. This is quite good.
EPS 1Y (TTM)22.06%
EPS 3Y21.92%
EPS 5Y25.85%
EPS Q2Q%27.2%
Revenue 1Y (TTM)14.72%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%14.97%
3.2 Future
The Earnings Per Share is expected to grow by 22.73% on average over the next years. This is a very strong growth
Based on estimates for the next years, FICO will show a quite strong growth in Revenue. The Revenue will grow by 14.29% on average per year.
EPS Next Y25.67%
EPS Next 2Y25.05%
EPS Next 3Y25.75%
EPS Next 5Y22.73%
Revenue Next Year15.68%
Revenue Next 2Y15.71%
Revenue Next 3Y16.2%
Revenue Next 5Y14.29%
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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 69.71, which means the current valuation is very expensive for FICO.
Compared to the rest of the industry, the Price/Earnings ratio of FICO is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.60, FICO is valued quite expensively.
Based on the Price/Forward Earnings ratio of 49.55, the valuation of FICO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FICO is on the same level as its industry peers.
FICO is valuated expensively when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.71 | ||
| Fwd PE | 49.55 |
4.2 Price Multiples
63.96% of the companies in the same industry are more expensive than FICO, based on the Enterprise Value to EBITDA ratio.
FICO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.1 | ||
| EV/EBITDA | 62.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FICO does not grow enough to justify the current Price/Earnings ratio.
FICO has an outstanding profitability rating, which may justify a higher PE ratio.
FICO's earnings are expected to grow with 25.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.71
PEG (5Y)2.7
EPS Next 2Y25.05%
EPS Next 3Y25.75%
5. Dividend
5.1 Amount
FICO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:FICO (5/21/2025, 9:52:06 AM)
1839.55
-187.45 (-9.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners88.67%
Inst Owner Change0.04%
Ins Owners2.53%
Ins Owner Change3.29%
Market Cap44.77B
Analysts76.8
Price Target2209.33 (20.1%)
Short Float %2.81%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.77%
Min EPS beat(2)-6.46%
Max EPS beat(2)2.91%
EPS beat(4)2
Avg EPS beat(4)-1.54%
Min EPS beat(4)-6.46%
Max EPS beat(4)2.91%
EPS beat(8)4
Avg EPS beat(8)-1.16%
EPS beat(12)6
Avg EPS beat(12)-0.13%
EPS beat(16)10
Avg EPS beat(16)4.51%
Revenue beat(2)0
Avg Revenue beat(2)-3.39%
Min Revenue beat(2)-4.62%
Max Revenue beat(2)-2.17%
Revenue beat(4)0
Avg Revenue beat(4)-2.22%
Min Revenue beat(4)-4.62%
Max Revenue beat(4)-0.67%
Revenue beat(8)1
Avg Revenue beat(8)-1.58%
Revenue beat(12)1
Avg Revenue beat(12)-1.27%
Revenue beat(16)3
Avg Revenue beat(16)-1.23%
PT rev (1m)3.98%
PT rev (3m)-0.81%
EPS NQ rev (1m)-1.38%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)1.12%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.71 | ||
| Fwd PE | 49.55 | ||
| P/S | 24.33 | ||
| P/FCF | 66.1 | ||
| P/OCF | 63.18 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 62.52 |
EPS(TTM)26.39
EY1.43%
EPS(NY)37.12
Fwd EY2.02%
FCF(TTM)27.83
FCFY1.51%
OCF(TTM)29.12
OCFY1.58%
SpS75.61
BVpS-46.18
TBVpS-78.2
PEG (NY)2.71
PEG (5Y)2.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.44% | ||
| ROE | N/A | ||
| ROCE | 54.45% | ||
| ROIC | 42.86% | ||
| ROICexc | 47.53% | ||
| ROICexgc | 112.89% | ||
| OM | 44.15% | ||
| PM (TTM) | 31.36% | ||
| GM | 80.83% | ||
| FCFM | 36.81% |
ROA(3y)27.67%
ROA(5y)24.55%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)41.13%
ROIC(5y)35.64%
ROICexc(3y)46.48%
ROICexc(5y)41.08%
ROICexgc(3y)170.74%
ROICexgc(5y)438.55%
ROCE(3y)52.25%
ROCE(5y)45.27%
ROICexcg growth 3Y-54.87%
ROICexcg growth 5Y-33.18%
ROICexc growth 3Y6.74%
ROICexc growth 5Y15.31%
OM growth 3Y10.81%
OM growth 5Y14.35%
PM growth 3Y0.09%
PM growth 5Y12.51%
GM growth 3Y2.17%
GM growth 5Y2.36%
F-Score8
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.73 | ||
| Debt/EBITDA | 3.04 | ||
| Cap/Depr | 214.85% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 6.95 | ||
| Cash Conversion | 85.68% | ||
| Profit Quality | 117.38% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z | 15.93 |
F-Score8
WACC10.86%
ROIC/WACC3.95
Cap/Depr(3y)95.02%
Cap/Depr(5y)77.4%
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.98%
Profit Quality(3y)120%
Profit Quality(5y)122.25%
High Growth Momentum
Growth
EPS 1Y (TTM)22.06%
EPS 3Y21.92%
EPS 5Y25.85%
EPS Q2Q%27.2%
EPS Next Y25.67%
EPS Next 2Y25.05%
EPS Next 3Y25.75%
EPS Next 5Y22.73%
Revenue 1Y (TTM)14.72%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%14.97%
Revenue Next Year15.68%
Revenue Next 2Y15.71%
Revenue Next 3Y16.2%
Revenue Next 5Y14.29%
EBIT growth 1Y17.95%
EBIT growth 3Y21.08%
EBIT growth 5Y23.68%
EBIT Next Year27.74%
EBIT Next 3Y25.8%
EBIT Next 5Y21.29%
FCF growth 1Y56.44%
FCF growth 3Y13.43%
FCF growth 5Y20.77%
OCF growth 1Y59.55%
OCF growth 3Y14.31%
OCF growth 5Y19.44%