FACTSET RESEARCH SYSTEMS INC (FDS) Stock Fundamental Analysis
NYSE:FDS - New York Stock Exchange, Inc. - US3030751057 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FDS. FDS was compared to 233 industry peers in the Capital Markets industry. While FDS has a great profitability rating, there are some minor concerns on its financial health. FDS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FDS was profitable.
In the past year FDS had a positive cash flow from operations.
FDS had positive earnings in each of the past 5 years.
In the past 5 years FDS always reported a positive cash flow from operatings.
1.2 Ratios
FDS has a Return On Assets of 12.28%. This is amongst the best in the industry. FDS outperforms 92.73% of its industry peers.
The Return On Equity of FDS (24.73%) is better than 92.73% of its industry peers.
FDS has a better Return On Invested Capital (14.95%) than 89.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FDS is significantly above the industry average of 7.84%.
The last Return On Invested Capital (14.95%) for FDS is above the 3 year average (14.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.28% | ||
| ROE | 24.73% | ||
| ROIC | 14.95% |
ROA(3y)11.65%
ROA(5y)14.16%
ROE(3y)28.93%
ROE(5y)33.54%
ROIC(3y)14.84%
ROIC(5y)16.9%
1.3 Margins
With a decent Profit Margin value of 23.30%, FDS is doing good in the industry, outperforming 64.10% of the companies in the same industry.
FDS's Profit Margin has been stable in the last couple of years.
FDS has a Operating Margin (30.71%) which is comparable to the rest of the industry.
FDS's Operating Margin has been stable in the last couple of years.
The Gross Margin of FDS (53.33%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of FDS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.71% | ||
| PM (TTM) | 23.3% | ||
| GM | 53.33% |
OM growth 3Y2.47%
OM growth 5Y0.98%
PM growth 3Y-0.98%
PM growth 5Y-0.16%
GM growth 3Y2.24%
GM growth 5Y0.11%
2. Health
2.1 Basic Checks
Compared to 1 year ago, FDS has about the same amount of shares outstanding.
The number of shares outstanding for FDS has been reduced compared to 5 years ago.
The debt/assets ratio for FDS has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of FDS is 2.48, which is a good value as it means it would take FDS, 2.48 years of fcf income to pay off all of its debts.
FDS has a better Debt to FCF ratio (2.48) than 81.62% of its industry peers.
FDS has a Debt/Equity ratio of 0.66. This is a neutral value indicating FDS is somewhat dependend on debt financing.
FDS has a Debt to Equity ratio of 0.66. This is in the better half of the industry: FDS outperforms 64.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.48 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.47 indicates that FDS should not have too much problems paying its short term obligations.
FDS has a Current ratio of 1.47. This is comparable to the rest of the industry: FDS outperforms 59.40% of its industry peers.
A Quick Ratio of 1.47 indicates that FDS should not have too much problems paying its short term obligations.
The Quick ratio of FDS (1.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.52% over the past year.
Measured over the past years, FDS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.47% on average per year.
Looking at the last year, FDS shows a small growth in Revenue. The Revenue has grown by 5.07% in the last year.
FDS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.95% yearly.
EPS 1Y (TTM)6.52%
EPS 3Y14.53%
EPS 5Y10.47%
EPS Q2Q%-2.29%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y11.45%
Revenue growth 5Y8.95%
Sales Q2Q%5.94%
3.2 Future
FDS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.16% yearly.
The Revenue is expected to grow by 5.66% on average over the next years.
EPS Next Y4.72%
EPS Next 2Y6.26%
EPS Next 3Y6.76%
EPS Next 5Y8.16%
Revenue Next Year5.83%
Revenue Next 2Y5.82%
Revenue Next 3Y5.71%
Revenue Next 5Y5.66%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.78 indicates a quite expensive valuation of FDS.
Compared to the rest of the industry, the Price/Earnings ratio of FDS indicates a slightly more expensive valuation: FDS is more expensive than 65.81% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. FDS is around the same levels.
FDS is valuated rather expensively with a Price/Forward Earnings ratio of 24.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FDS indicates a slightly more expensive valuation: FDS is more expensive than 62.39% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FDS to the average of the S&P500 Index (21.76), we can say FDS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.78 | ||
| Fwd PE | 24.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FDS is valued a bit cheaper than 72.65% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as FDS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.26 | ||
| EV/EBITDA | 20.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FDS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.68
PEG (5Y)2.56
EPS Next 2Y6.26%
EPS Next 3Y6.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, FDS is not a good candidate for dividend investing.
FDS's Dividend Yield is slightly below the industry average, which is at 8.12.
Compared to an average S&P500 Dividend Yield of 2.35, FDS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
On average, the dividend of FDS grows each year by 8.63%, which is quite nice.
FDS has paid a dividend for at least 10 years, which is a reliable track record.
FDS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.63%
Div Incr Years25
Div Non Decr Years25
5.3 Sustainability
29.59% of the earnings are spent on dividend by FDS. This is a low number and sustainable payout ratio.
The dividend of FDS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.59%
EPS Next 2Y6.26%
EPS Next 3Y6.76%
446.21
-3.77 (-0.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners95.35%
Inst Owner Change-0.02%
Ins Owners0.22%
Ins Owner Change0.25%
Market Cap16.87B
Analysts52.86
Price Target450.06 (0.86%)
Short Float %3.6%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend3.97
Dividend Growth(5Y)8.63%
DP29.59%
Div Incr Years25
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.14%
Min EPS beat(2)-1.55%
Max EPS beat(2)1.83%
EPS beat(4)3
Avg EPS beat(4)1%
Min EPS beat(4)-1.55%
Max EPS beat(4)2.27%
EPS beat(8)5
Avg EPS beat(8)0.55%
EPS beat(12)8
Avg EPS beat(12)1.39%
EPS beat(16)11
Avg EPS beat(16)2.74%
Revenue beat(2)0
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)-0.13%
Revenue beat(4)1
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-0.98%
Max Revenue beat(4)1.79%
Revenue beat(8)1
Avg Revenue beat(8)-0.42%
Revenue beat(12)2
Avg Revenue beat(12)-0.46%
Revenue beat(16)6
Avg Revenue beat(16)-0.18%
PT rev (1m)-0.24%
PT rev (3m)-1.29%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)0.17%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.78 | ||
| Fwd PE | 24.02 | ||
| P/S | 7.38 | ||
| P/FCF | 29.26 | ||
| P/OCF | 24.91 | ||
| P/B | 7.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.32 |
EPS(TTM)16.66
EY3.73%
EPS(NY)18.58
Fwd EY4.16%
FCF(TTM)15.25
FCFY3.42%
OCF(TTM)17.91
OCFY4.01%
SpS60.49
BVpS57
TBVpS-27.87
PEG (NY)5.68
PEG (5Y)2.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.28% | ||
| ROE | 24.73% | ||
| ROCE | 18.39% | ||
| ROIC | 14.95% | ||
| ROICexc | 16.53% | ||
| ROICexgc | 231.49% | ||
| OM | 30.71% | ||
| PM (TTM) | 23.3% | ||
| GM | 53.33% | ||
| FCFM | 25.21% |
ROA(3y)11.65%
ROA(5y)14.16%
ROE(3y)28.93%
ROE(5y)33.54%
ROIC(3y)14.84%
ROIC(5y)16.9%
ROICexc(3y)17.3%
ROICexc(5y)22.8%
ROICexgc(3y)672.42%
ROICexgc(5y)448.23%
ROCE(3y)18.25%
ROCE(5y)20.78%
ROICexcg growth 3Y123.88%
ROICexcg growth 5Y43.1%
ROICexc growth 3Y-15.06%
ROICexc growth 5Y-11.86%
OM growth 3Y2.47%
OM growth 5Y0.98%
PM growth 3Y-0.98%
PM growth 5Y-0.16%
GM growth 3Y2.24%
GM growth 5Y0.11%
F-Score6
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 2.48 | ||
| Debt/EBITDA | 1.62 | ||
| Cap/Depr | 56.09% | ||
| Cap/Sales | 4.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.78% | ||
| Profit Quality | 108.18% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | N/A |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)46.21%
Cap/Depr(5y)54.56%
Cap/Sales(3y)3.19%
Cap/Sales(5y)3.73%
Profit Quality(3y)120.69%
Profit Quality(5y)120.1%
High Growth Momentum
Growth
EPS 1Y (TTM)6.52%
EPS 3Y14.53%
EPS 5Y10.47%
EPS Q2Q%-2.29%
EPS Next Y4.72%
EPS Next 2Y6.26%
EPS Next 3Y6.76%
EPS Next 5Y8.16%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y11.45%
Revenue growth 5Y8.95%
Sales Q2Q%5.94%
Revenue Next Year5.83%
Revenue Next 2Y5.82%
Revenue Next 3Y5.71%
Revenue Next 5Y5.66%
EBIT growth 1Y-1.81%
EBIT growth 3Y14.2%
EBIT growth 5Y10.02%
EBIT Next Year13.16%
EBIT Next 3Y8.72%
EBIT Next 5Y7.5%
FCF growth 1Y2.11%
FCF growth 3Y7.56%
FCF growth 5Y10.82%
OCF growth 1Y5.62%
OCF growth 3Y8.05%
OCF growth 5Y10.39%