Should Quality Investors Include NYSE:FICO in Their Portfolio?

In this article we will dive into FAIR ISAAC CORP (NYSE:FICO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed FAIR ISAAC CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into FAIR ISAAC CORP's Quality Metrics.

• Over the past 5 years, FAIR ISAAC CORP has experienced impressive revenue growth, with 8.64% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a notable ROIC excluding cash and goodwill at 114.0%, 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.
• FAIR ISAAC CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.37, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• The Profit Quality (5-year) of FAIR ISAAC CORP stands at 123.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• With a robust 5-year EBIT growth of 29.58%, FAIR ISAAC CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, FAIR ISAAC CORP showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of NYSE:FICO

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall FICO gets a fundamental rating of 7 out of 10. We evaluated FICO against 276 industry peers in the Software industry. Both the health and profitability get an excellent rating, making FICO a very profitable company, without any liquidiy or solvency issues. FICO is valued quite expensive, but it does show an excellent growth. These ratings could make FICO a good candidate for growth and quality investing.

For an up to date full fundamental analysis you can check the fundamental report of FICO

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

Keep in mind

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.