FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
USA - NYSE:FICO - US3032501047 - Common Stock
1850.65 USD
+65.97 (+3.7%)
1850.65 USD
0 (0%)
Taking everything into account, FICO scores 6 out of 10 in our fundamental rating. FICO was compared to 281 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 shows excellent growth, but is valued quite expensive already. These ratings could make FICO a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year FICO was profitable.
In the past year FICO had a positive cash flow from operations.
Each year in the past 5 years FICO has been profitable.
Each year in the past 5 years FICO had a positive operating cash flow.
1.2 Ratios
FICO's Return On Assets of 33.98% is amongst the best of the industry. FICO outperforms 97.86% of its industry peers.
FICO has a better Return On Invested Capital (63.82%) than 99.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FICO is significantly above the industry average of 11.98%.
The last Return On Invested Capital (63.82%) for FICO is above the 3 year average (41.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.98% | ||
| ROE | N/A | ||
| ROIC | 63.82% |
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 better Profit Margin (32.80%) than 92.17% of its industry peers.
In the last couple of years the Profit Margin of FICO has grown nicely.
FICO's Operating Margin of 45.87% is amongst the best of the industry. FICO outperforms 97.15% of its industry peers.
In the last couple of years the Operating Margin of FICO has grown nicely.
FICO has a Gross Margin of 81.75%. This is amongst the best in the industry. FICO outperforms 87.19% of its industry peers.
FICO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.87% | ||
| PM (TTM) | 32.8% | ||
| GM | 81.75% |
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
FICO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 14.05 indicates that FICO is not in any danger for bankruptcy at the moment.
FICO's Altman-Z score of 14.05 is amongst the best of the industry. FICO outperforms 90.04% of its industry peers.
The Debt to FCF ratio of FICO is 3.72, which is a good value as it means it would take FICO, 3.72 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.72, FICO is in the better half of the industry, outperforming 61.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 14.05 |
ROIC/WACC5.66
WACC11.28%
2.3 Liquidity
FICO has a Current Ratio of 0.92. This is a bad value and indicates that FICO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of FICO (0.92) is worse than 75.09% of its industry peers.
FICO has a Quick Ratio of 0.92. This is a bad value and indicates that FICO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.92, FICO is doing worse than 74.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
FICO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.27%, which is quite impressive.
Measured over the past years, FICO shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.85% on average per year.
The Revenue has grown by 16.66% in the past year. This is quite good.
FICO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.16% yearly.
EPS 1Y (TTM)29.27%
EPS 3Y21.92%
EPS 5Y25.85%
EPS Q2Q%37.12%
Revenue 1Y (TTM)16.66%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%19.78%
3.2 Future
Based on estimates for the next years, FICO will show a very strong growth in Earnings Per Share. The EPS will grow by 24.45% on average per year.
The Revenue is expected to grow by 15.62% on average over the next years. This is quite good.
EPS Next Y26.83%
EPS Next 2Y23.63%
EPS Next 3Y23.61%
EPS Next 5Y24.45%
Revenue Next Year16.03%
Revenue Next 2Y15.86%
Revenue Next 3Y15.77%
Revenue Next 5Y15.62%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 64.46 indicates a quite expensive valuation of FICO.
Compared to the rest of the industry, the Price/Earnings ratio of FICO is on the same level as its industry peers.
FICO is valuated expensively when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 51.00 indicates a quite expensive valuation of FICO.
FICO's Price/Forward Earnings ratio is in line with the industry average.
FICO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.46 | ||
| Fwd PE | 51 |
4.2 Price Multiples
63.70% of the companies in the same industry are more expensive than FICO, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as FICO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.39 | ||
| EV/EBITDA | 52.25 |
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.
The excellent profitability rating of FICO may justify a higher PE ratio.
FICO's earnings are expected to grow with 23.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.4
PEG (5Y)2.49
EPS Next 2Y23.63%
EPS Next 3Y23.61%
5. Dividend
5.1 Amount
FICO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1850.65
+65.97 (+3.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.25%
Inst Owner Change0%
Ins Owners2.35%
Ins Owner Change-0.47%
Market Cap44.42B
Analysts79.23
Price Target1922.57 (3.89%)
Short Float %4.63%
Short Ratio3.41
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)2
Avg EPS beat(2)6.02%
Min EPS beat(2)2.91%
Max EPS beat(2)9.13%
EPS beat(4)3
Avg EPS beat(4)1.49%
Min EPS beat(4)-6.46%
Max EPS beat(4)9.13%
EPS beat(8)4
Avg EPS beat(8)-0.74%
EPS beat(12)6
Avg EPS beat(12)-0.2%
EPS beat(16)10
Avg EPS beat(16)3.83%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)2.08%
Revenue beat(4)1
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-4.62%
Max Revenue beat(4)2.08%
Revenue beat(8)1
Avg Revenue beat(8)-1.62%
Revenue beat(12)2
Avg Revenue beat(12)-1.09%
Revenue beat(16)3
Avg Revenue beat(16)-1.16%
PT rev (1m)-0.49%
PT rev (3m)-15.49%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-7.71%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.46 | ||
| Fwd PE | 51 | ||
| P/S | 23.03 | ||
| P/FCF | 59.39 | ||
| P/OCF | 56.83 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 52.25 |
EPS(TTM)28.71
EY1.55%
EPS(NY)36.28
Fwd EY1.96%
FCF(TTM)31.16
FCFY1.68%
OCF(TTM)32.57
OCFY1.76%
SpS80.37
BVpS-58.23
TBVpS-90.95
PEG (NY)2.4
PEG (5Y)2.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.98% | ||
| ROE | N/A | ||
| ROCE | 81.08% | ||
| ROIC | 63.82% | ||
| ROICexc | 77.19% | ||
| ROICexgc | 595.74% | ||
| OM | 45.87% | ||
| PM (TTM) | 32.8% | ||
| GM | 81.75% | ||
| FCFM | 38.77% |
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-Score7
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.72 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 228.57% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 7.64 | ||
| Cash Conversion | 86.88% | ||
| Profit Quality | 118.22% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 14.05 |
F-Score7
WACC11.28%
ROIC/WACC5.66
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)29.27%
EPS 3Y21.92%
EPS 5Y25.85%
EPS Q2Q%37.12%
EPS Next Y26.83%
EPS Next 2Y23.63%
EPS Next 3Y23.61%
EPS Next 5Y24.45%
Revenue 1Y (TTM)16.66%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%19.78%
Revenue Next Year16.03%
Revenue Next 2Y15.86%
Revenue Next 3Y15.77%
Revenue Next 5Y15.62%
EBIT growth 1Y26.02%
EBIT growth 3Y21.08%
EBIT growth 5Y23.68%
EBIT Next Year36.55%
EBIT Next 3Y25.36%
EBIT Next 5Y23.97%
FCF growth 1Y70.13%
FCF growth 3Y13.43%
FCF growth 5Y20.77%
OCF growth 1Y73.81%
OCF growth 3Y14.31%
OCF growth 5Y19.44%