Why FAIR ISAAC CORP (NYSE:FICO) Deserves Consideration as a Quality Investment.

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.

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

• FAIR ISAAC CORP has demonstrated significant revenue growth over the past 5 years, with a 8.64% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a notable ROIC excluding cash and goodwill at 125.0%, 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 3.85, 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 123.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• FAIR ISAAC CORP has consistently achieved strong EBIT growth over the past 5 years, with a 29.58% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• 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 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 6 out of 10. We evaluated FICO against 285 industry peers in the Software industry. FICO has an excellent profitability rating, but there are some minor concerns on its financial health. FICO is valued quite expensive, but it does show an excellent growth. These ratings would make FICO suitable for growth investing!

Check the latest full fundamental report of FICO for a complete fundamental analysis.

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.