FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FICO - US3032501047 - Common Stock
1753.19 USD
+22.18 (+1.28%)
1753.19 USD
0 (0%)
Taking everything into account, FICO scores 6 out of 10 in our fundamental rating. FICO was compared to 278 industry peers in the Software industry. While FICO has a great profitability rating, there are some minor concerns on its financial health. FICO shows excellent growth, but is valued quite expensive already.
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
FICO has a Return On Assets of 34.90%. This is amongst the best in the industry. FICO outperforms 98.56% of its industry peers.
With an excellent Return On Invested Capital value of 73.98%, FICO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FICO is significantly above the industry average of 10.78%.
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
FICO has a Profit Margin of 32.75%. This is amongst the best in the industry. FICO outperforms 92.09% of its industry peers.
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 97.12% of its industry peers.
FICO's Operating Margin has improved in the last couple of years.
FICO has a Gross Margin of 82.23%. This is amongst the best in the industry. FICO outperforms 87.41% of its industry peers.
FICO's Gross Margin has improved in the last couple of years.
| 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
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.
FICO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FICO has a worse debt to assets ratio.
2.2 Solvency
FICO has an Altman-Z score of 12.94. This indicates that FICO is financially healthy and has little risk of bankruptcy at the moment.
FICO's Altman-Z score of 12.94 is amongst the best of the industry. FICO outperforms 91.73% 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.
FICO has a Debt to FCF ratio of 4.14. This is in the better half of the industry: FICO outperforms 60.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 12.94 |
ROIC/WACC6.82
WACC10.85%
2.3 Liquidity
A Current Ratio of 0.83 indicates that FICO may have some problems paying its short term obligations.
The Current ratio of FICO (0.83) is worse than 83.09% of its industry peers.
A Quick Ratio of 0.83 indicates that FICO may have some problems paying its short term obligations.
With a Quick ratio value of 0.83, FICO is not doing good in the industry: 82.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.99% over the past year.
FICO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.08% yearly.
FICO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.91%.
Measured over the past years, FICO shows a quite strong growth in Revenue. The Revenue has been growing by 8.99% on average per year.
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
FICO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.50% yearly.
Based on estimates for the next years, FICO will show a quite strong growth in Revenue. The Revenue will grow by 14.69% on average per year.
EPS Next Y38.13%
EPS Next 2Y32.38%
EPS Next 3Y27.16%
EPS Next 5Y22.5%
Revenue Next Year22.24%
Revenue Next 2Y19.56%
Revenue Next 3Y16.9%
Revenue Next 5Y14.69%
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
Based on the Price/Earnings ratio of 58.62, the valuation of FICO can be described as expensive.
FICO's Price/Earnings ratio is in line with the industry average.
FICO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.57.
Based on the Price/Forward Earnings ratio of 42.44, the valuation of FICO can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FICO is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, FICO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.62 | ||
| Fwd PE | 42.44 |
4.2 Price Multiples
62.59% of the companies in the same industry are more expensive than FICO, based on the Enterprise Value to EBITDA ratio.
FICO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.22 | ||
| EV/EBITDA | 46.8 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 27.16% in the coming years.
PEG (NY)1.54
PEG (5Y)2.34
EPS Next 2Y32.38%
EPS Next 3Y27.16%
5. Dividend
5.1 Amount
No dividends for FICO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
1753.19
+22.18 (+1.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.13%
Inst Owner Change2.33%
Ins Owners2.4%
Ins Owner Change0.86%
Market Cap41.57B
Revenue(TTM)1.99B
Net Income(TTM)651.95M
Analysts77.86
Price Target2064.81 (17.77%)
Short Float %4.48%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1.51%
PT rev (3m)7.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.23%
EPS NY rev (1m)5.53%
EPS NY rev (3m)13.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)3.08%
Revenue NY rev (3m)7.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.62 | ||
| Fwd PE | 42.44 | ||
| P/S | 20.88 | ||
| P/FCF | 56.22 | ||
| P/OCF | 53.37 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 46.8 |
EPS(TTM)29.91
EY1.71%
EPS(NY)41.31
Fwd EY2.36%
FCF(TTM)31.19
FCFY1.78%
OCF(TTM)32.85
OCFY1.87%
SpS83.97
BVpS-73.63
TBVpS-106.67
PEG (NY)1.54
PEG (5Y)2.34
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 | 12.94 |
F-Score7
WACC10.85%
ROIC/WACC6.82
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 Y38.13%
EPS Next 2Y32.38%
EPS Next 3Y27.16%
EPS Next 5Y22.5%
Revenue 1Y (TTM)15.91%
Revenue growth 3Y13.07%
Revenue growth 5Y8.99%
Sales Q2Q%13.65%
Revenue Next Year22.24%
Revenue Next 2Y19.56%
Revenue Next 3Y16.9%
Revenue Next 5Y14.69%
EBIT growth 1Y27.55%
EBIT growth 3Y19.94%
EBIT growth 5Y22.37%
EBIT Next Year32.76%
EBIT Next 3Y24.01%
EBIT Next 5Y19.58%
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 38.13% 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%.