FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FICO - US3032501047 - Common Stock
1805.83 USD
+8.56 (+0.48%)
1800 USD
-5.83 (-0.32%)
We assign a fundamental rating of 6 out of 10 to FICO. 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 is valued quite expensive, but it does show an excellent growth.
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.
Each year in the past 5 years FICO had a positive operating cash flow.
1.2 Ratios
FICO's Return On Assets of 34.90% is amongst the best of the industry. FICO outperforms 98.58% of its industry peers.
With an excellent Return On Invested Capital value of 73.98%, FICO belongs to the best of the industry, outperforming 99.64% of the companies in the same industry.
FICO had an Average Return On Invested Capital over the past 3 years of 53.64%. This is significantly above the industry average of 12.00%.
The last Return On Invested Capital (73.98%) for FICO is above the 3 year average (53.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.9% | ||
| ROE | N/A | ||
| ROIC | 73.98% |
ROA(3y)30.67%
ROA(5y)28.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)53.64%
ROIC(5y)46.65%
1.3 Margins
Looking at the Profit Margin, with a value of 32.75%, FICO belongs to the top of the industry, outperforming 91.81% of the companies in the same industry.
FICO's Profit Margin has improved in the last couple of years.
FICO has a Operating Margin of 47.00%. This is amongst the best in the industry. FICO outperforms 97.15% 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 82.23%, FICO belongs to the top of the industry, outperforming 87.90% 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 | 47% | ||
| PM (TTM) | 32.75% | ||
| GM | 82.23% |
OM growth 3Y6.07%
OM growth 5Y12.28%
PM growth 3Y6.48%
PM growth 5Y12.39%
GM growth 3Y1.75%
GM growth 5Y2.67%
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.
Compared to 5 years ago, FICO has less shares outstanding
The debt/assets ratio for FICO is higher compared to a year ago.
2.2 Solvency
FICO has an Altman-Z score of 13.15. This indicates that FICO is financially healthy and has little risk of bankruptcy at the moment.
FICO's Altman-Z score of 13.15 is amongst the best of the industry. FICO outperforms 90.39% of its industry peers.
FICO has a debt to FCF ratio of 4.14. This is a neutral value as FICO would need 4.14 years to pay back of all of its debts.
The Debt to FCF ratio of FICO (4.14) is better than 60.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 13.15 |
ROIC/WACC6.81
WACC10.87%
2.3 Liquidity
FICO has a Current Ratio of 0.83. 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 Current ratio value of 0.83, FICO is not doing good in the industry: 81.85% of the companies in the same industry are doing better.
A Quick Ratio of 0.83 indicates that FICO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.83, FICO is doing worse than 81.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
FICO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.99%, which is quite impressive.
FICO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.08% yearly.
FICO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.91%.
The Revenue has been growing by 8.99% on average over the past years. This is quite good.
EPS 1Y (TTM)25.99%
EPS 3Y20.14%
EPS 5Y25.08%
EPS Q2Q%18.35%
Revenue 1Y (TTM)15.91%
Revenue growth 3Y13.07%
Revenue growth 5Y8.99%
Sales Q2Q%13.65%
3.2 Future
The Earnings Per Share is expected to grow by 22.50% on average over the next years. This is a very strong growth
FICO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.69% yearly.
EPS Next Y30.89%
EPS Next 2Y28.76%
EPS Next 3Y28.68%
EPS Next 5Y22.5%
Revenue Next Year18.59%
Revenue Next 2Y17.48%
Revenue Next 3Y18.18%
Revenue Next 5Y14.69%
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.
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
FICO is valuated quite expensively with a Price/Earnings ratio of 60.38.
Compared to the rest of the industry, the Price/Earnings ratio of FICO is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.31. FICO is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 46.13, which means the current valuation is very expensive for FICO.
FICO's Price/Forward Earnings is on the same level as the industry average.
FICO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.38 | ||
| Fwd PE | 46.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FICO indicates a somewhat cheap valuation: FICO is cheaper than 62.28% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as FICO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.91 | ||
| EV/EBITDA | 48.12 |
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.
A more expensive valuation may be justified as FICO's earnings are expected to grow with 28.68% in the coming years.
PEG (NY)1.95
PEG (5Y)2.41
EPS Next 2Y28.76%
EPS Next 3Y28.68%
5. Dividend
5.1 Amount
No dividends for FICO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1805.83
+8.56 (+0.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.25%
Inst Owner Change2.31%
Ins Owners2.35%
Ins Owner Change0.59%
Market Cap42.82B
Revenue(TTM)1.99B
Net Income(TTM)651.95M
Analysts77.86
Price Target2034.12 (12.64%)
Short Float %4.44%
Short Ratio3.31
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)6.24%
Min EPS beat(2)3.35%
Max EPS beat(2)9.13%
EPS beat(4)3
Avg EPS beat(4)2.24%
Min EPS beat(4)-6.46%
Max EPS beat(4)9.13%
EPS beat(8)5
Avg EPS beat(8)0.38%
EPS beat(12)6
Avg EPS beat(12)-0.32%
EPS beat(16)10
Avg EPS beat(16)2.61%
Revenue beat(2)1
Avg Revenue beat(2)0.29%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)2.08%
Revenue beat(4)1
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-4.62%
Max Revenue beat(4)2.08%
Revenue beat(8)1
Avg Revenue beat(8)-1.57%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)3
Avg Revenue beat(16)-0.91%
PT rev (1m)5.8%
PT rev (3m)5.28%
EPS NQ rev (1m)0.98%
EPS NQ rev (3m)-0.23%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)7.9%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.38 | ||
| Fwd PE | 46.13 | ||
| P/S | 21.51 | ||
| P/FCF | 57.91 | ||
| P/OCF | 54.98 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 48.12 |
EPS(TTM)29.91
EY1.66%
EPS(NY)39.15
Fwd EY2.17%
FCF(TTM)31.19
FCFY1.73%
OCF(TTM)32.85
OCFY1.82%
SpS83.97
BVpS-73.63
TBVpS-106.67
PEG (NY)1.95
PEG (5Y)2.41
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.9% | ||
| ROE | N/A | ||
| ROCE | 91.84% | ||
| ROIC | 73.98% | ||
| ROICexc | 85.19% | ||
| ROICexgc | 743.07% | ||
| OM | 47% | ||
| PM (TTM) | 32.75% | ||
| GM | 82.23% | ||
| FCFM | 37.14% |
ROA(3y)30.67%
ROA(5y)28.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)53.64%
ROIC(5y)46.65%
ROICexc(3y)61.06%
ROICexc(5y)53.77%
ROICexgc(3y)354.45%
ROICexgc(5y)571.57%
ROCE(3y)66.59%
ROCE(5y)57.92%
ROICexgc growth 3Y53.89%
ROICexgc growth 5Y41.9%
ROICexc growth 3Y23.98%
ROICexc growth 5Y26.25%
OM growth 3Y6.07%
OM growth 5Y12.28%
PM growth 3Y6.48%
PM growth 5Y12.39%
GM growth 3Y1.75%
GM growth 5Y2.67%
F-Score7
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.14 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 263.56% | ||
| Cap/Sales | 1.98% | ||
| Interest Coverage | 9.04 | ||
| Cash Conversion | 81.92% | ||
| Profit Quality | 113.41% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 13.15 |
F-Score7
WACC10.87%
ROIC/WACC6.81
Cap/Depr(3y)173.05%
Cap/Depr(5y)115.64%
Cap/Sales(3y)1.38%
Cap/Sales(5y)1.03%
Profit Quality(3y)112.89%
Profit Quality(5y)115.92%
High Growth Momentum
Growth
EPS 1Y (TTM)25.99%
EPS 3Y20.14%
EPS 5Y25.08%
EPS Q2Q%18.35%
EPS Next Y30.89%
EPS Next 2Y28.76%
EPS Next 3Y28.68%
EPS Next 5Y22.5%
Revenue 1Y (TTM)15.91%
Revenue growth 3Y13.07%
Revenue growth 5Y8.99%
Sales Q2Q%13.65%
Revenue Next Year18.59%
Revenue Next 2Y17.48%
Revenue Next 3Y18.18%
Revenue Next 5Y14.69%
EBIT growth 1Y27.55%
EBIT growth 3Y19.94%
EBIT growth 5Y22.37%
EBIT Next Year20.02%
EBIT Next 3Y25.19%
EBIT Next 5Y19.56%
FCF growth 1Y21.73%
FCF growth 3Y13.67%
FCF growth 5Y16.61%
OCF growth 1Y23.04%
OCF growth 3Y15.2%
OCF growth 5Y16.37%
FAIR ISAAC CORP / FICO FAQ
What is the ChartMill fundamental rating of FAIR ISAAC CORP (FICO) stock?
ChartMill assigns a fundamental rating of 6 / 10 to FICO.
What is the valuation status for FICO stock?
ChartMill assigns a valuation rating of 3 / 10 to FAIR ISAAC CORP (FICO). This can be considered as Overvalued.
Can you provide the profitability details for FAIR ISAAC CORP?
FAIR ISAAC CORP (FICO) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for FICO stock?
The Earnings per Share (EPS) of FAIR ISAAC CORP (FICO) is expected to grow by 30.89% in the next year.
Can you provide the dividend sustainability for FICO stock?
The dividend rating of FAIR ISAAC CORP (FICO) is 0 / 10 and the dividend payout ratio is 0%.