FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
NYSE:FICO - New York Stock Exchange, Inc. - US3032501047 - Common Stock - Currency: USD
Overall FICO gets a fundamental rating of 7 out of 10. We evaluated FICO against 284 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 expensively, but it does show have an excellent growth rating. These ratings would make FICO suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
FICO had positive earnings in the past year.
In the past year FICO had a positive cash flow from operations.
FICO had positive earnings in each of the past 5 years.
Each year in the past 5 years FICO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 31.44%, FICO belongs to the best of the industry, outperforming 97.89% of the companies in the same industry.
FICO has a Return On Invested Capital of 42.86%. This is amongst the best in the industry. FICO outperforms 98.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FICO is significantly above the industry average of 12.30%.
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
FICO's Profit Margin of 31.36% is amongst the best of the industry. FICO outperforms 95.07% of its industry peers.
FICO's Profit Margin has improved in the last couple of years.
FICO's Operating Margin of 44.15% is amongst the best of the industry. FICO outperforms 98.59% of its industry peers.
FICO's Operating Margin has improved in the last couple of years.
FICO's Gross Margin of 80.83% is amongst the best of the industry. FICO outperforms 83.10% of its industry peers.
In the last couple of years the Gross Margin of FICO has grown nicely.
| 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.
FICO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FICO has less shares outstanding
The debt/assets ratio for FICO is higher compared to a year ago.
2.2 Solvency
FICO has an Altman-Z score of 14.83. This indicates that FICO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 14.83, FICO belongs to the best of the industry, outperforming 91.55% of the companies in the same industry.
The Debt to FCF ratio of FICO is 3.73, which is a good value as it means it would take FICO, 3.73 years of fcf income to pay off all of its debts.
FICO has a better Debt to FCF ratio (3.73) than 62.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.73 | ||
| Altman-Z | 14.83 |
ROIC/WACC3.87
WACC11.08%
2.3 Liquidity
FICO has a Current Ratio of 2.11. This indicates that FICO is financially healthy and has no problem in meeting its short term obligations.
FICO has a better Current ratio (2.11) than 63.38% of its industry peers.
FICO has a Quick Ratio of 2.11. This indicates that FICO is financially healthy and has no problem in meeting its short term obligations.
FICO's Quick ratio of 2.11 is fine compared to the rest of the industry. FICO outperforms 64.08% 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.
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.
Looking at the last year, FICO shows a quite strong growth in Revenue. The Revenue has grown by 14.72% in the last year.
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
FICO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.55% yearly.
Based on estimates for the next years, FICO will show a quite strong growth in Revenue. The Revenue will grow by 14.01% on average per year.
EPS Next Y25.67%
EPS Next 2Y25.05%
EPS Next 3Y25.75%
EPS Next 5Y21.55%
Revenue Next Year15.68%
Revenue Next 2Y15.68%
Revenue Next 3Y16.2%
Revenue Next 5Y14.01%
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
The Price/Earnings ratio is 67.62, which means the current valuation is very expensive for FICO.
Compared to the rest of the industry, the Price/Earnings ratio of FICO is on the same level as its industry peers.
FICO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.60.
The Price/Forward Earnings ratio is 48.07, 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 22.39, FICO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.62 | ||
| Fwd PE | 48.07 |
4.2 Price Multiples
FICO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FICO is cheaper than 64.08% 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 | 64.12 | ||
| EV/EBITDA | 55.99 |
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.
FICO has an outstanding profitability rating, which may justify a higher PE ratio.
FICO's earnings are expected to grow with 25.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.63
PEG (5Y)2.62
EPS Next 2Y25.05%
EPS Next 3Y25.75%
5. Dividend
5.1 Amount
No dividends for FICO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1784.37
-20.63 (-1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners88.67%
Inst Owner Change0.41%
Ins Owners2.53%
Ins Owner Change6.27%
Market Cap43.43B
Analysts78.4
Price Target2271.75 (27.31%)
Short Float %2.88%
Short Ratio2.65
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)2.83%
PT rev (3m)6.57%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)-0.88%
EPS NY rev (1m)1.12%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.62 | ||
| Fwd PE | 48.07 | ||
| P/S | 23.6 | ||
| P/FCF | 64.12 | ||
| P/OCF | 61.28 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 55.99 |
EPS(TTM)26.39
EY1.48%
EPS(NY)37.12
Fwd EY2.08%
FCF(TTM)27.83
FCFY1.56%
OCF(TTM)29.12
OCFY1.63%
SpS75.61
BVpS-46.18
TBVpS-78.2
PEG (NY)2.63
PEG (5Y)2.62
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 | 14.83 |
F-Score8
WACC11.08%
ROIC/WACC3.87
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 Y25.67%
EPS Next 2Y25.05%
EPS Next 3Y25.75%
EPS Next 5Y21.55%
Revenue 1Y (TTM)14.72%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%14.97%
Revenue Next Year15.68%
Revenue Next 2Y15.68%
Revenue Next 3Y16.2%
Revenue Next 5Y14.01%
EBIT growth 1Y17.95%
EBIT growth 3Y21.08%
EBIT growth 5Y23.68%
EBIT Next Year28.77%
EBIT Next 3Y25.65%
EBIT Next 5Y20.74%
FCF growth 1Y56.44%
FCF growth 3Y13.43%
FCF growth 5Y20.77%
OCF growth 1Y59.55%
OCF growth 3Y14.31%
OCF growth 5Y19.44%