FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
USA - NYSE:FICO - US3032501047 - Common Stock
1667 USD
+51.64 (+3.2%)
1667 USD
0 (0%)
FICO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 285 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 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.
FICO had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 33.98%, FICO belongs to the top of the industry, outperforming 97.90% of the companies in the same industry.
The Return On Invested Capital of FICO (63.82%) is better than 99.65% 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 11.88%.
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 has a Profit Margin of 32.80%. This is amongst the best in the industry. FICO outperforms 91.96% of its industry peers.
FICO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 45.87%, FICO belongs to the best of the industry, outperforming 97.20% of the companies in the same industry.
FICO's Operating Margin has improved in the last couple of years.
The Gross Margin of FICO (81.75%) is better than 87.41% 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.
FICO has less shares outstanding than it did 1 year ago.
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 13.24 indicates that FICO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 13.24, FICO belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
The Debt to FCF ratio of FICO is 3.72, which is a good value as it means it would take FICO, 3.72 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.72, FICO is doing good in the industry, outperforming 62.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 13.24 |
ROIC/WACC5.82
WACC10.96%
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 75.17% 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's Quick ratio of 0.92 is on the low side compared to the rest of the industry. FICO is outperformed by 74.48% 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.
Measured over the past years, FICO shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.85% on average per year.
The Revenue has grown by 16.66% in the past year. This is quite good.
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)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
The Earnings Per Share is expected to grow by 24.45% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 15.62% on average over the next years. This is quite good.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 58.06, the valuation of FICO can be described as expensive.
FICO's Price/Earnings ratio is in line with the industry average.
FICO is valuated expensively when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 42.45, 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's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.06 | ||
| Fwd PE | 42.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FICO is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
FICO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.49 | ||
| EV/EBITDA | 47.35 |
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.
A more expensive valuation may be justified as FICO's earnings are expected to grow with 28.13% in the coming years.
PEG (NY)2.15
PEG (5Y)2.25
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 |
1667
+51.64 (+3.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.25%
Inst Owner Change-0.7%
Ins Owners2.35%
Ins Owner Change-0.46%
Market Cap40.01B
Revenue(TTM)1.93B
Net Income(TTM)632.62M
Analysts79.23
Price Target1922.57 (15.33%)
Short Float %4.4%
Short Ratio3
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)0.15%
PT rev (3m)-11.38%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)-7.19%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)-2.58%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.06 | ||
| Fwd PE | 42.45 | ||
| P/S | 20.74 | ||
| P/FCF | 53.49 | ||
| P/OCF | 51.19 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 47.35 |
EPS(TTM)28.71
EY1.72%
EPS(NY)39.27
Fwd EY2.36%
FCF(TTM)31.16
FCFY1.87%
OCF(TTM)32.57
OCFY1.95%
SpS80.37
BVpS-58.23
TBVpS-90.95
PEG (NY)2.15
PEG (5Y)2.25
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 | 13.24 |
F-Score7
WACC10.96%
ROIC/WACC5.82
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%.