FAIR ISAAC CORP (FICO)
US3032501047 - Common Stock
Taking everything into account, FICO scores 6 out of 10 in our fundamental rating. FICO was compared to 276 industry peers in the Software industry. While FICO has a great profitability rating, there are some minor concerns on its financial health. FICO is growing strongly while it is still valued neutral. This is a good combination! These ratings would make FICO suitable 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.
FICO had positive earnings in each of the past 5 years.
FICO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 28.41%, FICO belongs to the top of the industry, outperforming 98.91% of the companies in the same industry.
FICO has a Return On Invested Capital of 44.18%. This is amongst the best in the industry. FICO outperforms 99.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FICO is significantly above the industry average of 10.12%.
The 3 year average ROIC (37.35%) for FICO is below the current ROIC(44.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.41% | ||
| ROE | N/A | ||
| ROIC | 44.18% |
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
FICO has a better Profit Margin (29.20%) than 95.26% of its industry peers.
FICO's Profit Margin has improved in the last couple of years.
FICO has a Operating Margin of 42.16%. This is amongst the best in the industry. FICO outperforms 99.27% of its industry peers.
FICO's Operating Margin has improved in the last couple of years.
FICO has a better Gross Margin (79.50%) than 81.39% of its industry peers.
FICO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.16% | ||
| PM (TTM) | 29.2% | ||
| GM | 79.5% |
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.
Compared to 1 year ago, FICO has less shares outstanding
FICO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FICO has been reduced compared to a year ago.
2.2 Solvency
FICO has an Altman-Z score of 13.15. This indicates that FICO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.15, FICO belongs to the top of the industry, outperforming 92.70% of the companies in the same industry.
The Debt to FCF ratio of FICO is 3.96, which is a good value as it means it would take FICO, 3.96 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.96, FICO is in the better half of the industry, outperforming 63.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.96 | ||
| Altman-Z | 13.15 |
ROIC/WACC4.49
WACC9.84%
2.3 Liquidity
FICO has a Current Ratio of 1.31. This is a normal value and indicates that FICO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FICO (1.31) is worse than 62.04% of its industry peers.
FICO has a Quick Ratio of 1.31. This is a normal value and indicates that FICO is financially healthy and should not expect problems in meeting its short term obligations.
FICO has a Quick ratio of 1.31. This is in the lower half of the industry: FICO underperforms 60.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
FICO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.76%, which is quite good.
The Earnings Per Share has been growing by 25.86% on average over the past years. This is a very strong growth
Looking at the last year, FICO shows a quite strong growth in Revenue. The Revenue has grown by 10.79% 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)13.76%
EPS 3Y26.36%
EPS 5Y25.86%
EPS growth Q2Q12.91%
Revenue 1Y (TTM)10.79%
Revenue growth 3Y5.35%
Revenue growth 5Y8.64%
Revenue growth Q2Q10.78%
3.2 Future
FICO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.08% yearly.
The Revenue is expected to grow by 10.75% on average over the next years. This is quite good.
EPS Next Y23.06%
EPS Next 2Y23%
EPS Next 3Y20.94%
EPS Next 5Y19.08%
Revenue Next Year11.73%
Revenue Next 2Y12.79%
Revenue Next 3Y12.15%
Revenue Next 5Y10.75%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 58.65, FICO can be considered very expensive at the moment.
FICO's Price/Earnings ratio is a bit cheaper when compared to the industry. FICO is cheaper than 62.41% of the companies in the same industry.
When comparing the Price/Earnings ratio of FICO to the average of the S&P500 Index (25.20), we can say FICO is valued expensively.
FICO is valuated quite expensively with a Price/Forward Earnings ratio of 39.84.
63.14% of the companies in the same industry are more expensive than FICO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, FICO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.65 | ||
| Fwd PE | 39.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FICO is valued a bit cheaper than the industry average as 70.80% of the companies are valued more expensively.
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 | 59.61 | ||
| EV/EBITDA | 46.97 |
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)2.54
PEG (5Y)2.27
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 (4/23/2024, 7:04:00 PM)
After market: 1188.19 0 (0%)1188.19
+37.53 (+3.26%)
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 Cap29.53B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.65 | ||
| Fwd PE | 39.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
FCFY
OCF(TTM)
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SpS
BVpS
TBVpS
PEG (NY)2.54
PEG (5Y)2.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.41% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.16% | ||
| PM (TTM) | 29.2% | ||
| GM | 79.5% | ||
| 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 Turnover0.97
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 | 1.31 | ||
| Quick Ratio | 1.31 | ||
| 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)13.76%
EPS 3Y26.36%
EPS 5Y
EPS growth Q2Q
EPS Next Y23.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.79%
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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