Why the quality investor may take a look at FAIR ISAAC CORP (NYSE:FICO).

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.

• FICO has achieved substantial revenue growth over the past 5 years, with a 8.16% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a robust ROIC excluding cash and goodwill at 144.0%, FICO showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• FICO maintains a healthy Debt/Free Cash Flow Ratio of 3.59, 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.
• With a robust Profit Quality (5-year) ratio of 122.0%, FICO highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• FICO has demonstrated consistent growth in EBIT over the past 5 years, with a strong 23.68%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• FICO has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental analysis of FICO

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Taking everything into account, FICO scores 6 out of 10 in our fundamental rating. FICO was compared to 279 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 shows excellent growth, but is valued quite expensive already. These ratings would make FICO suitable 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.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.