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FAIR ISAAC CORP (NYSE:FICO) can be considered a quality stock. Here's why.

By Mill Chart

Last update: Nov 10, 2023

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 course 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.

Some of the quality metrics of NYSE:FICO highlighted

  • FAIR ISAAC CORP has shown strong performance in revenue growth over the past 5 years, with a 8.12% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • FAIR ISAAC CORP exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 197.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • FAIR ISAAC CORP maintains a healthy Debt/Free Cash Flow Ratio of 4.39, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • 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 has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

A complete fundamental analysis of NYSE:FICO

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.

Overall FICO gets a fundamental rating of 6 out of 10. We evaluated FICO against 280 industry peers in the Software industry. FICO has an excellent profitability rating, but there are some minor concerns on its financial health. FICO is growing strongly while it is still valued neutral. This is a good combination! With these ratings, FICO could be worth investigating further for growth investing!.

Our latest full fundamental report of FICO contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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