FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
NYSE:FICO - New York Stock Exchange, Inc. - US3032501047 - Common Stock - Currency: USD
Overall FICO gets a fundamental rating of 7 out of 10. We evaluated FICO against 281 industry peers in the Software industry. FICO gets an excellent profitability rating and is at the same time showing great financial health properties. FICO is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make FICO suitable for growth and quality 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.
In the past 5 years FICO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FICO (31.44%) is better than 97.86% of its industry peers.
FICO has a Return On Invested Capital of 42.86%. This is amongst the best in the industry. FICO outperforms 98.58% of its industry peers.
FICO had an Average Return On Invested Capital over the past 3 years of 41.13%. This is significantly above the industry average of 12.11%.
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
Looking at the Profit Margin, with a value of 31.36%, FICO belongs to the top of the industry, outperforming 95.02% of the companies in the same industry.
In the last couple of years the Profit Margin of FICO has grown nicely.
FICO has a better Operating Margin (44.15%) than 98.58% of its industry peers.
FICO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 80.83%, FICO belongs to the top of the industry, outperforming 83.27% of the companies in the same industry.
FICO's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for FICO has been reduced compared to 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 13.02. This indicates that FICO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FICO (13.02) is better than 89.32% of its industry peers.
The Debt to FCF ratio of FICO is 3.73, which is a good value as it means it would take FICO, 3.73 years of fcf income to pay off all of its debts.
FICO has a Debt to FCF ratio of 3.73. This is in the better half of the industry: FICO outperforms 61.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 13.02 |
ROIC/WACC4.12
WACC10.39%
2.3 Liquidity
A Current Ratio of 2.11 indicates that FICO has no problem at all paying its short term obligations.
FICO has a Current ratio of 2.11. This is in the better half of the industry: FICO outperforms 63.70% of its industry peers.
A Quick Ratio of 2.11 indicates that FICO has no problem at all paying its short term obligations.
FICO's Quick ratio of 2.11 is fine compared to the rest of the industry. FICO outperforms 64.41% of its industry peers.
| 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 29.27% over the past year.
The Earnings Per Share has been growing by 25.85% on average over the past years. This is a very strong growth
The Revenue has grown by 13.48% in the past year. This is quite good.
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)13.48%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%19.78%
3.2 Future
The Earnings Per Share is expected to grow by 24.40% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 15.58% on average over the next years. This is quite good.
EPS Next Y25.92%
EPS Next 2Y25.08%
EPS Next 3Y25.18%
EPS Next 5Y24.4%
Revenue Next Year15.68%
Revenue Next 2Y15.61%
Revenue Next 3Y15.93%
Revenue Next 5Y15.58%
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 48.10 indicates a quite expensive valuation of FICO.
FICO's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of FICO to the average of the S&P500 Index (26.82), we can say FICO is valued expensively.
With a Price/Forward Earnings ratio of 37.18, FICO can be considered very expensive at the moment.
FICO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of FICO to the average of the S&P500 Index (36.21), we can say FICO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.1 | ||
| Fwd PE | 37.18 |
4.2 Price Multiples
67.26% of the companies in the same industry are more expensive than FICO, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FICO indicates a somewhat cheap valuation: FICO is cheaper than 61.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.63 | ||
| EV/EBITDA | 45.15 |
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 25.18% in the coming years.
PEG (NY)1.86
PEG (5Y)1.86
EPS Next 2Y25.08%
EPS Next 3Y25.18%
5. Dividend
5.1 Amount
No dividends for FICO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1381.07
-55.65 (-3.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners90.04%
Inst Owner Change-1.15%
Ins Owners2.54%
Ins Owner Change-0.37%
Market Cap33.62B
Analysts78.4
Price Target2169.41 (57.08%)
Short Float %3.81%
Short Ratio2.58
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)-4.64%
PT rev (3m)1.43%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)0.13%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.1 | ||
| Fwd PE | 37.18 | ||
| P/S | 18.27 | ||
| P/FCF | 49.63 | ||
| P/OCF | 47.43 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 45.15 |
EPS(TTM)28.71
EY2.08%
EPS(NY)37.14
Fwd EY2.69%
FCF(TTM)27.83
FCFY2.02%
OCF(TTM)29.12
OCFY2.11%
SpS75.61
BVpS-46.18
TBVpS-78.2
PEG (NY)1.86
PEG (5Y)1.86
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 | 13.02 |
F-Score8
WACC10.39%
ROIC/WACC4.12
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 Y25.92%
EPS Next 2Y25.08%
EPS Next 3Y25.18%
EPS Next 5Y24.4%
Revenue 1Y (TTM)13.48%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%19.78%
Revenue Next Year15.68%
Revenue Next 2Y15.61%
Revenue Next 3Y15.93%
Revenue Next 5Y15.58%
EBIT growth 1Y17.95%
EBIT growth 3Y21.08%
EBIT growth 5Y23.68%
EBIT Next Year28.77%
EBIT Next 3Y25.65%
EBIT Next 5Y23.99%
FCF growth 1Y56.44%
FCF growth 3Y13.43%
FCF growth 5Y20.77%
OCF growth 1Y59.55%
OCF growth 3Y14.31%
OCF growth 5Y19.44%