Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if FAIR ISAAC CORP (NYSE:FICO) is suited for quality investing. Investors should of couse do their own research, but we spotted FAIR ISAAC CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.
Why NYSE:FICO may be interesting for quality investors.
The 5-year revenue growth of FAIR ISAAC CORP has been remarkable, with 8.12% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
With a notable ROIC excluding cash and goodwill at 197.0%, FAIR ISAAC CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
With a favorable Debt/Free Cash Flow Ratio of 4.39, FAIR ISAAC CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
FAIR ISAAC CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 132.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
FAIR ISAAC CORP has demonstrated consistent growth in EBIT over the past 5 years, with a strong 24.45%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
FAIR ISAAC CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.
Fundamental Analysis Observations
ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.
We assign a fundamental rating of 6 out of 10 to FICO. FICO was compared to 282 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 is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, FICO could be worth investigating further for growth investing!.
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.