FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
NYSE:FICO - US3032501047 - Common Stock
1415.9 USD
+54.18 (+3.98%)
1425.89 USD
+9.99 (+0.71%)
We assign a fundamental rating of 6 out of 10 to FICO. FICO was compared to 283 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 is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes FICO very considerable for growth investing!
1. Profitability
1.1 Basic Checks
FICO had positive earnings in the past year.
FICO had a positive operating cash flow in the past year.
FICO had positive earnings in each of the past 5 years.
FICO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FICO's Return On Assets of 33.98% is amongst the best of the industry. FICO outperforms 98.23% of its industry peers.
FICO's Return On Invested Capital of 63.82% is amongst the best of the industry. FICO outperforms 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 11.99%.
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
The Profit Margin of FICO (32.80%) is better than 92.23% of its industry peers.
In the last couple of years the Profit Margin of FICO has grown nicely.
With an excellent Operating Margin value of 45.87%, FICO belongs to the best of the industry, outperforming 97.17% of the companies in the same industry.
FICO's Operating Margin has improved in the last couple of years.
FICO has a better Gross Margin (81.75%) than 87.28% of its industry peers.
In the last couple of years the Gross Margin of FICO has grown nicely.
| 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.
The number of shares outstanding for FICO has been reduced compared to 1 year ago.
Compared to 5 years ago, FICO has less shares outstanding
FICO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.13 indicates that FICO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 12.13, FICO belongs to the best of the industry, outperforming 90.46% of the companies in the same industry.
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.
FICO has a Debt to FCF ratio of 3.72. This is in the better half of the industry: FICO outperforms 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 12.13 |
ROIC/WACC5.71
WACC11.18%
2.3 Liquidity
A Current Ratio of 0.92 indicates that FICO may have some problems paying its short term obligations.
The Current ratio of FICO (0.92) is worse than 75.27% 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.
With a Quick ratio value of 0.92, FICO is not doing good in the industry: 74.56% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing by 25.85% on average over the past years. This is a very strong growth
Looking at the last year, FICO shows a quite strong growth in Revenue. The Revenue has grown by 16.66% 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)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 22.92% on average per year.
The Revenue is expected to grow by 14.61% on average over the next years. This is quite good.
EPS Next Y26.82%
EPS Next 2Y23.62%
EPS Next 3Y23.61%
EPS Next 5Y22.92%
Revenue Next Year16.03%
Revenue Next 2Y14.94%
Revenue Next 3Y14.93%
Revenue Next 5Y14.61%
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
With a Price/Earnings ratio of 49.32, FICO can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as FICO.
The average S&P500 Price/Earnings ratio is at 27.24. FICO is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 39.03, FICO can be considered very expensive at the moment.
FICO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, FICO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.32 | ||
| Fwd PE | 39.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FICO is valued a bit cheaper than the industry average as 67.49% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FICO indicates a somewhat cheap valuation: FICO is cheaper than 62.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.44 | ||
| EV/EBITDA | 40.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FICO has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FICO's earnings are expected to grow with 23.61% in the coming years.
PEG (NY)1.84
PEG (5Y)1.91
EPS Next 2Y23.62%
EPS Next 3Y23.61%
5. Dividend
5.1 Amount
FICO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1415.9
+54.18 (+3.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners89.67%
Inst Owner Change-4.99%
Ins Owners2.53%
Ins Owner Change-0.37%
Market Cap33.98B
Analysts78.46
Price Target1932.03 (36.45%)
Short Float %3.37%
Short Ratio2.39
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)-10.94%
PT rev (3m)-12.55%
EPS NQ rev (1m)-7.74%
EPS NQ rev (3m)-8.91%
EPS NY rev (1m)0.72%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)-2.93%
Revenue NQ rev (3m)-3.01%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.32 | ||
| Fwd PE | 39.03 | ||
| P/S | 17.62 | ||
| P/FCF | 45.44 | ||
| P/OCF | 43.48 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 40.65 |
EPS(TTM)28.71
EY2.03%
EPS(NY)36.28
Fwd EY2.56%
FCF(TTM)31.16
FCFY2.2%
OCF(TTM)32.57
OCFY2.3%
SpS80.37
BVpS-58.23
TBVpS-90.95
PEG (NY)1.84
PEG (5Y)1.91
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 | 12.13 |
F-Score7
WACC11.18%
ROIC/WACC5.71
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 Y26.82%
EPS Next 2Y23.62%
EPS Next 3Y23.61%
EPS Next 5Y22.92%
Revenue 1Y (TTM)16.66%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%19.78%
Revenue Next Year16.03%
Revenue Next 2Y14.94%
Revenue Next 3Y14.93%
Revenue Next 5Y14.61%
EBIT growth 1Y26.02%
EBIT growth 3Y21.08%
EBIT growth 5Y23.68%
EBIT Next Year29.35%
EBIT Next 3Y23%
EBIT Next 5Y21.3%
FCF growth 1Y70.13%
FCF growth 3Y13.43%
FCF growth 5Y20.77%
OCF growth 1Y73.81%
OCF growth 3Y14.31%
OCF growth 5Y19.44%