FAIR ISAAC CORP (FICO)
US3032501047 - Common Stock
FICO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. FICO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FICO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, FICO could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
FICO had positive earnings in the past year.
FICO had a positive operating cash flow in the past year.
FICO had positive earnings in each of the past 5 years.
In the past 5 years FICO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 28.25%, FICO belongs to the top of the industry, outperforming 98.54% of the companies in the same industry.
FICO's Return On Invested Capital of 38.92% is amongst the best of the industry. FICO outperforms 99.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FICO is significantly above the industry average of 10.37%.
The 3 year average ROIC (37.35%) for FICO is below the current ROIC(38.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.25% | ||
| ROE | N/A | ||
| ROIC | 38.92% |
ROA(3y)26.06%
ROA(5y)21.26%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)37.35%
ROIC(5y)31.11%
1.3 Margins
Looking at the Profit Margin, with a value of 29.98%, FICO belongs to the top of the industry, outperforming 95.26% of the companies in the same industry.
In the last couple of years the Profit Margin of FICO has grown nicely.
With an excellent Operating Margin value of 42.94%, FICO belongs to the best of the industry, outperforming 99.27% of the companies in the same industry.
FICO's Operating Margin has improved in the last couple of years.
FICO has a better Gross Margin (79.74%) than 81.39% of its industry peers.
FICO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.94% | ||
| PM (TTM) | 29.98% | ||
| GM | 79.74% |
OM growth 3Y17.14%
OM growth 5Y19.28%
PM growth 3Y15.82%
PM growth 5Y17.53%
GM growth 3Y3.29%
GM growth 5Y2.95%
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.
The number of shares outstanding for FICO has been reduced compared to 5 years ago.
Compared to 1 year ago, FICO has an improved debt to assets ratio.
2.2 Solvency
FICO has an Altman-Z score of 12.75. This indicates that FICO is financially healthy and has little risk of bankruptcy at the moment.
FICO's Altman-Z score of 12.75 is amongst the best of the industry. FICO outperforms 90.88% of its industry peers.
The Debt to FCF ratio of FICO is 4.37, which is a neutral value as it means it would take FICO, 4.37 years of fcf income to pay off all of its debts.
FICO has a better Debt to FCF ratio (4.37) than 62.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 12.75 |
ROIC/WACC3.91
WACC9.96%
2.3 Liquidity
A Current Ratio of 2.04 indicates that FICO has no problem at all paying its short term obligations.
FICO has a Current ratio of 2.04. This is comparable to the rest of the industry: FICO outperforms 59.85% of its industry peers.
FICO has a Quick Ratio of 2.04. This indicates that FICO is financially healthy and has no problem in meeting its short term obligations.
FICO has a Quick ratio of 2.04. This is in the better half of the industry: FICO outperforms 60.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.71% over the past year.
FICO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.86% yearly.
Looking at the last year, FICO shows a quite strong growth in Revenue. The Revenue has grown by 12.75% in the last year.
Measured over the past years, FICO shows a quite strong growth in Revenue. The Revenue has been growing by 8.64% on average per year.
EPS 1Y (TTM)20.71%
EPS 3Y26.36%
EPS 5Y25.86%
EPS growth Q2Q28.45%
Revenue 1Y (TTM)12.75%
Revenue growth 3Y5.35%
Revenue growth 5Y8.64%
Revenue growth Q2Q14.08%
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 21.94% on average per year.
FICO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.26% yearly.
EPS Next Y23.06%
EPS Next 2Y23%
EPS Next 3Y20.94%
EPS Next 5Y21.94%
Revenue Next Year11.73%
Revenue Next 2Y12.79%
Revenue Next 3Y12.15%
Revenue Next 5Y13.26%
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 55.18, FICO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, FICO is valued a bit cheaper than the industry average as 62.77% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of FICO to the average of the S&P500 Index (27.73), we can say FICO is valued expensively.
The Price/Forward Earnings ratio is 40.01, which means the current valuation is very expensive for FICO.
Based on the Price/Forward Earnings ratio, FICO is valued a bit cheaper than 62.04% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.41. FICO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.18 | ||
| Fwd PE | 40.01 |
4.2 Price Multiples
FICO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FICO is cheaper than 70.44% of the companies in the same industry.
FICO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.1 | ||
| EV/EBITDA | 44.75 |
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.
FICO's earnings are expected to grow with 20.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.39
PEG (5Y)2.13
EPS Next 2Y23%
EPS Next 3Y20.94%
5. Dividend
5.1 Amount
FICO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FAIR ISAAC CORP
NYSE:FICO (5/3/2024, 7:04:00 PM)
After market: 1193.01 0 (0%)1193.01
+27.66 (+2.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap29.48B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.18 | ||
| Fwd PE | 40.01 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.39
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.25% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.94% | ||
| PM (TTM) | 29.98% | ||
| GM | 79.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)20.71%
EPS 3Y26.36%
EPS 5Y
EPS growth Q2Q
EPS Next Y23.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.75%
Revenue growth 3Y5.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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