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 6 out of 10 in our fundamental rating. FICO was compared to 283 industry peers in the Software industry. While FICO has a great profitability rating, there are some minor concerns on its financial health. FICO is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make FICO a good candidate 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.
In the past 5 years FICO always reported a positive cash flow from operatings.
1.2 Ratios
FICO has a better Return On Assets (33.98%) than 98.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 63.82%, FICO belongs to the top of the industry, outperforming 99.29% 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 12.14%.
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 92.93% of its industry peers.
FICO's Profit Margin has improved in the last couple of years.
FICO has a better Operating Margin (45.87%) than 97.17% of its industry peers.
FICO's Operating Margin has improved in the last couple of years.
FICO has a Gross Margin of 81.75%. This is amongst the best in the industry. FICO outperforms 86.93% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FICO is creating value.
Compared to 1 year ago, FICO has less shares outstanding
The number of shares outstanding for FICO has been reduced compared to 5 years ago.
FICO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.78 indicates that FICO is not in any danger for bankruptcy at the moment.
FICO has a Altman-Z score of 11.78. This is amongst the best in the industry. FICO outperforms 89.05% of its industry peers.
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.
FICO's Debt to FCF ratio of 3.72 is fine compared to the rest of the industry. FICO outperforms 61.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 11.78 |
ROIC/WACC5.61
WACC11.37%
2.3 Liquidity
A Current Ratio of 0.92 indicates that FICO may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.92, FICO is doing worse than 75.97% of the companies in the same industry.
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's Quick ratio of 0.92 is on the low side compared to the rest of the industry. FICO is outperformed by 75.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.27% over the past year.
FICO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.85% yearly.
The Revenue has grown by 16.66% in the past year. This is quite good.
FICO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.16% yearly.
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 24.40% 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 Y25.92%
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
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 46.51, FICO can be considered very expensive at the moment.
FICO's Price/Earnings ratio is in line with the industry average.
FICO is valuated expensively when we compare the Price/Earnings ratio to 27.11, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 35.95, the valuation of FICO can be described as expensive.
FICO's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FICO to the average of the S&P500 Index (35.78), we can say FICO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.51 | ||
| Fwd PE | 35.95 |
4.2 Price Multiples
66.78% 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 a bit cheaper when compared to the industry. FICO is cheaper than 62.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.46 | ||
| EV/EBITDA | 38.56 |
4.3 Compensation for Growth
FICO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FICO has an outstanding profitability rating, which may justify a higher PE ratio.
FICO's earnings are expected to grow with 25.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.79
PEG (5Y)1.8
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 |
1335.29
+16.59 (+1.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners89.67%
Inst Owner Change-2.26%
Ins Owners2.53%
Ins Owner Change-0.37%
Market Cap32.50B
Analysts78.46
Price Target1965.12 (47.17%)
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)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)-13.62%
PT rev (3m)-11.05%
EPS NQ rev (1m)-6.06%
EPS NQ rev (3m)-7.09%
EPS NY rev (1m)0%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)-2.96%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.51 | ||
| Fwd PE | 35.95 | ||
| P/S | 16.85 | ||
| P/FCF | 43.46 | ||
| P/OCF | 41.58 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 38.56 |
EPS(TTM)28.71
EY2.15%
EPS(NY)37.14
Fwd EY2.78%
FCF(TTM)30.73
FCFY2.3%
OCF(TTM)32.11
OCFY2.4%
SpS79.25
BVpS-57.41
TBVpS-89.68
PEG (NY)1.79
PEG (5Y)1.8
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%
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-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 | 11.78 |
F-Score7
WACC11.37%
ROIC/WACC5.61
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)16.66%
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 1Y26.02%
EBIT growth 3Y21.08%
EBIT growth 5Y23.68%
EBIT Next Year29.35%
EBIT Next 3Y23%
EBIT Next 5Y23.99%
FCF growth 1Y70.13%
FCF growth 3Y13.43%
FCF growth 5Y20.77%
OCF growth 1Y73.81%
OCF growth 3Y14.31%
OCF growth 5Y19.44%