FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
USA - NYSE:FICO - US3032501047 - Common Stock
1544.05 USD
-52.51 (-3.29%)
1544.05 USD
0 (0%)
Taking everything into account, FICO scores 6 out of 10 in our fundamental rating. FICO was compared to 280 industry peers in the Software industry. While FICO has a great profitability rating, 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! With these ratings, FICO could be worth investigating further 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.
In the past 5 years FICO has always been profitable.
In the past 5 years FICO always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 33.98%, FICO belongs to the best of the industry, outperforming 97.86% of the companies in the same industry.
FICO has a Return On Invested Capital of 63.82%. This is amongst the best in the industry. FICO outperforms 99.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FICO is significantly above the industry average of 11.85%.
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 92.50% 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 97.14% of the companies in the same industry.
In the last couple of years the Operating Margin of FICO has grown nicely.
With an excellent Gross Margin value of 81.75%, FICO belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FICO is creating value.
FICO has less shares outstanding than it did 1 year ago.
FICO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FICO is higher compared to a year ago.
2.2 Solvency
FICO has an Altman-Z score of 12.69. This indicates that FICO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.69, FICO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
FICO has a debt to FCF ratio of 3.72. This is a good value and a sign of high solvency as FICO would need 3.72 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.72, FICO is doing good in the industry, outperforming 61.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 12.69 |
ROIC/WACC5.84
WACC10.92%
2.3 Liquidity
A Current Ratio of 0.92 indicates that FICO may have some problems paying its short term obligations.
FICO has a Current ratio of 0.92. This is in the lower half of the industry: FICO underperforms 75.36% 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.
FICO has a worse Quick ratio (0.92) than 74.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.27% 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 16.66% in the last year.
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
FICO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.92% yearly.
FICO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.61% yearly.
EPS Next Y26.82%
EPS Next 2Y23.62%
EPS Next 3Y23.61%
EPS Next 5Y22.92%
Revenue Next Year16.03%
Revenue Next 2Y14.97%
Revenue Next 3Y14.96%
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
Based on the Price/Earnings ratio of 53.78, the valuation of FICO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as FICO.
The average S&P500 Price/Earnings ratio is at 27.30. FICO is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 42.56, the valuation of FICO can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as FICO.
The average S&P500 Price/Forward Earnings ratio is at 22.73. FICO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.78 | ||
| Fwd PE | 42.56 |
4.2 Price Multiples
65.71% of the companies in the same industry are more expensive than FICO, based on the Enterprise Value to EBITDA ratio.
61.43% of the companies in the same industry are more expensive than FICO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.55 | ||
| EV/EBITDA | 44.07 |
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)2.01
PEG (5Y)2.08
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 |
1544.05
-52.51 (-3.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners89.67%
Inst Owner Change-4.97%
Ins Owners2.53%
Ins Owner Change-0.46%
Market Cap37.06B
Analysts78.46
Price Target1919.74 (24.33%)
Short Float %3.69%
Short Ratio2.38
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)-2.31%
PT rev (3m)-15.5%
EPS NQ rev (1m)-1.06%
EPS NQ rev (3m)-7.63%
EPS NY rev (1m)0.72%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.78 | ||
| Fwd PE | 42.56 | ||
| P/S | 19.21 | ||
| P/FCF | 49.55 | ||
| P/OCF | 47.41 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 44.07 |
EPS(TTM)28.71
EY1.86%
EPS(NY)36.28
Fwd EY2.35%
FCF(TTM)31.16
FCFY2.02%
OCF(TTM)32.57
OCFY2.11%
SpS80.37
BVpS-58.23
TBVpS-90.95
PEG (NY)2.01
PEG (5Y)2.08
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 | 12.69 |
F-Score7
WACC10.92%
ROIC/WACC5.84
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 2Y14.97%
Revenue Next 3Y14.96%
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%