FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
USA - NYSE:FICO - US3032501047 - Common Stock
1606.1 USD
-44.41 (-2.69%)
1600 USD
-6.1 (-0.38%)
We assign a fundamental rating of 6 out of 10 to FICO. FICO was compared to 284 industry peers in the Software industry. FICO scores excellent on profitability, but there are some minor concerns on its financial health. FICO shows excellent growth, but is valued quite expensive already. This makes FICO very considerable 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
With an excellent Return On Assets value of 33.98%, FICO belongs to the best of the industry, outperforming 98.24% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 63.82%, FICO belongs to the top of the industry, outperforming 99.65% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FICO is significantly above the industry average of 11.83%.
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's Profit Margin of 32.80% is amongst the best of the industry. FICO outperforms 91.90% of its industry peers.
In the last couple of years the Profit Margin of FICO has grown nicely.
FICO has a better Operating Margin (45.87%) than 96.83% of its industry peers.
In the last couple of years the Operating Margin of FICO has grown nicely.
FICO has a better Gross Margin (81.75%) than 87.68% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
FICO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.97 indicates that FICO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 12.97, FICO belongs to the best of the industry, outperforming 89.08% 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.
Looking at the Debt to FCF ratio, with a value of 3.72, FICO is in the better half of the industry, outperforming 61.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 12.97 |
ROIC/WACC5.8
WACC11.01%
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 75.00% 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 Quick ratio of 0.92. This is in the lower half of the industry: FICO underperforms 74.30% of its industry peers.
| 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
FICO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.66%.
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 24.45% on average per year.
FICO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.62% yearly.
EPS Next Y26.97%
EPS Next 2Y28.61%
EPS Next 3Y28.13%
EPS Next 5Y24.45%
Revenue Next Year16.08%
Revenue Next 2Y17.38%
Revenue Next 3Y17.14%
Revenue Next 5Y15.62%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 55.94 indicates a quite expensive valuation of FICO.
The rest of the industry has a similar Price/Earnings ratio as FICO.
The average S&P500 Price/Earnings ratio is at 26.03. FICO is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 40.90 indicates a quite expensive valuation of FICO.
The rest of the industry has a similar Price/Forward Earnings ratio as FICO.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, FICO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.94 | ||
| Fwd PE | 40.9 |
4.2 Price Multiples
FICO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FICO is cheaper than 65.49% of the companies in the same industry.
FICO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.54 | ||
| EV/EBITDA | 45.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of FICO may justify a higher PE ratio.
FICO's earnings are expected to grow with 28.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.07
PEG (5Y)2.16
EPS Next 2Y28.61%
EPS Next 3Y28.13%
5. Dividend
5.1 Amount
FICO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1606.1
-44.41 (-2.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.25%
Inst Owner Change-1.96%
Ins Owners2.35%
Ins Owner Change-0.46%
Market Cap38.55B
Revenue(TTM)1.93B
Net Income(TTM)632.62M
Analysts79.23
Price Target2043.76 (27.25%)
Short Float %4.09%
Short Ratio2.79
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)6.46%
PT rev (3m)-5.79%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)-4.22%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.94 | ||
| Fwd PE | 40.9 | ||
| P/S | 19.98 | ||
| P/FCF | 51.54 | ||
| P/OCF | 49.32 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 45.73 |
EPS(TTM)28.71
EY1.79%
EPS(NY)39.27
Fwd EY2.44%
FCF(TTM)31.16
FCFY1.94%
OCF(TTM)32.57
OCFY2.03%
SpS80.37
BVpS-58.23
TBVpS-90.95
PEG (NY)2.07
PEG (5Y)2.16
Graham NumberN/A
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%
ROICexgc growth 3Y-54.87%
ROICexgc 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 | 12.97 |
F-Score7
WACC11.01%
ROIC/WACC5.8
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 Y26.97%
EPS Next 2Y28.61%
EPS Next 3Y28.13%
EPS Next 5Y24.45%
Revenue 1Y (TTM)16.66%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%19.78%
Revenue Next Year16.08%
Revenue Next 2Y17.38%
Revenue Next 3Y17.14%
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%
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 26.97% 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%.