FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
NYSE:FICO - New York Stock Exchange, Inc. - US3032501047 - Common Stock - Currency: USD
Taking everything into account, FICO scores 7 out of 10 in our fundamental rating. FICO was compared to 282 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 valued quite expensive, but it does show an excellent growth. This makes FICO very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year FICO was profitable.
FICO had a positive operating cash flow in the past year.
In the past 5 years FICO has always been profitable.
Each year in the past 5 years FICO had a positive operating cash flow.
1.2 Ratios
FICO has a better Return On Assets (31.44%) than 97.87% of its industry peers.
The Return On Invested Capital of FICO (42.86%) is better than 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 12.26%.
The last Return On Invested Capital (42.86%) for FICO is above the 3 year average (41.13%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 31.36%, FICO belongs to the best of the industry, outperforming 95.04% of the companies in the same industry.
In the last couple of years the Profit Margin of FICO has grown nicely.
FICO has a Operating Margin of 44.15%. This is amongst the best in the industry. FICO outperforms 98.58% of its industry peers.
In the last couple of years the Operating Margin of FICO has grown nicely.
FICO has a better Gross Margin (80.83%) than 82.98% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FICO is creating value.
Compared to 1 year ago, FICO has less shares outstanding
Compared to 5 years ago, FICO has less shares outstanding
Compared to 1 year ago, FICO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 15.02 indicates that FICO is not in any danger for bankruptcy at the moment.
FICO has a better Altman-Z score (15.02) than 91.13% of its industry peers.
FICO has a debt to FCF ratio of 3.73. This is a good value and a sign of high solvency as FICO would need 3.73 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.73, FICO is in the better half of the industry, outperforming 61.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 15.02 |
ROIC/WACC4.91
WACC8.72%
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 better Current ratio (2.11) than 63.48% of its industry peers.
A Quick Ratio of 2.11 indicates that FICO has no problem at all paying its short term obligations.
The Quick ratio of FICO (2.11) is better than 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
FICO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.06%, which is quite impressive.
FICO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.85% yearly.
FICO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.72%.
Measured over the past years, FICO shows a quite strong growth in Revenue. The Revenue has been growing by 8.16% on average per year.
EPS 1Y (TTM)22.06%
EPS 3Y21.92%
EPS 5Y25.85%
EPS Q2Q%27.2%
Revenue 1Y (TTM)14.72%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%14.97%
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 24.40% on average per year.
The Revenue is expected to grow by 15.58% on average over the next years. This is quite good.
EPS Next Y25.76%
EPS Next 2Y25.18%
EPS Next 3Y25.7%
EPS Next 5Y24.4%
Revenue Next Year15.68%
Revenue Next 2Y15.73%
Revenue Next 3Y16.16%
Revenue Next 5Y15.58%
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
With a Price/Earnings ratio of 70.31, FICO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of FICO is on the same level as its industry peers.
When comparing the Price/Earnings ratio of FICO to the average of the S&P500 Index (27.45), we can say FICO is valued expensively.
The Price/Forward Earnings ratio is 49.88, which means the current valuation is very expensive for 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 21.90, FICO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.31 | ||
| Fwd PE | 49.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FICO is valued a bit cheaper than 62.41% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FICO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.67 | ||
| EV/EBITDA | 57.1 |
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 25.70% in the coming years.
PEG (NY)2.73
PEG (5Y)2.72
EPS Next 2Y25.18%
EPS Next 3Y25.7%
5. Dividend
5.1 Amount
No dividends for FICO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1855.38
+12.6 (+0.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners90.04%
Inst Owner Change0.41%
Ins Owners2.54%
Ins Owner Change-0.29%
Market Cap45.16B
Analysts78.4
Price Target2274.87 (22.61%)
Short Float %3.66%
Short Ratio3.16
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)2.97%
PT rev (3m)6.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.88%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.31 | ||
| Fwd PE | 49.88 | ||
| P/S | 24.54 | ||
| P/FCF | 66.67 | ||
| P/OCF | 63.72 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 57.1 |
EPS(TTM)26.39
EY1.42%
EPS(NY)37.2
Fwd EY2%
FCF(TTM)27.83
FCFY1.5%
OCF(TTM)29.12
OCFY1.57%
SpS75.61
BVpS-46.18
TBVpS-78.2
PEG (NY)2.73
PEG (5Y)2.72
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 | 15.02 |
F-Score8
WACC8.72%
ROIC/WACC4.91
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)22.06%
EPS 3Y21.92%
EPS 5Y25.85%
EPS Q2Q%27.2%
EPS Next Y25.76%
EPS Next 2Y25.18%
EPS Next 3Y25.7%
EPS Next 5Y24.4%
Revenue 1Y (TTM)14.72%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%14.97%
Revenue Next Year15.68%
Revenue Next 2Y15.73%
Revenue Next 3Y16.16%
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%