FACTSET RESEARCH SYSTEMS INC (FDS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FDS - US3030751057 - Common Stock
268.66 USD
-17.67 (-6.17%)
271.856 USD
+3.2 (+1.19%)
Taking everything into account, FDS scores 7 out of 10 in our fundamental rating. FDS was compared to 237 industry peers in the Capital Markets industry. FDS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FDS is not valued too expensively and it also shows a decent growth rate. With these ratings, FDS could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year FDS was profitable.
- FDS had a positive operating cash flow in the past year.
- FDS had positive earnings in each of the past 5 years.
- Each year in the past 5 years FDS had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of FDS (14.21%) is better than 93.67% of its industry peers.
- FDS has a Return On Equity of 27.66%. This is amongst the best in the industry. FDS outperforms 93.25% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 16.45%, FDS belongs to the top of the industry, outperforming 91.14% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for FDS is significantly above the industry average of 7.27%.
- The last Return On Invested Capital (16.45%) for FDS is above the 3 year average (16.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.21% | ||
| ROE | 27.66% | ||
| ROIC | 16.45% |
ROA(3y)12.98%
ROA(5y)13.36%
ROE(3y)28.1%
ROE(5y)30.68%
ROIC(3y)16.37%
ROIC(5y)16.42%
1.3 Margins
- FDS has a better Profit Margin (25.40%) than 64.98% of its industry peers.
- FDS's Profit Margin has been stable in the last couple of years.
- FDS has a better Operating Margin (31.73%) than 60.76% of its industry peers.
- FDS's Operating Margin has improved in the last couple of years.
- FDS has a Gross Margin of 52.26%. This is comparable to the rest of the industry: FDS outperforms 59.07% of its industry peers.
- FDS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.73% | ||
| PM (TTM) | 25.4% | ||
| GM | 52.26% |
OM growth 3Y3.26%
OM growth 5Y1.84%
PM growth 3Y6.11%
PM growth 5Y0.6%
GM growth 3Y-0.03%
GM growth 5Y-0.28%
2. Health
2.1 Basic Checks
- Compared to 1 year ago, FDS has less shares outstanding
- FDS has less shares outstanding than it did 5 years ago.
- FDS has a better debt/assets ratio than last year.
2.2 Solvency
- FDS has an Altman-Z score of 5.16. This indicates that FDS is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.16, FDS belongs to the best of the industry, outperforming 85.23% of the companies in the same industry.
- The Debt to FCF ratio of FDS is 2.11, which is a good value as it means it would take FDS, 2.11 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of FDS (2.11) is better than 85.23% of its industry peers.
- FDS has a Debt/Equity ratio of 0.63. This is a neutral value indicating FDS is somewhat dependend on debt financing.
- FDS has a Debt to Equity ratio of 0.63. This is in the better half of the industry: FDS outperforms 62.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 2.11 | ||
| Altman-Z | 5.16 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 1.54 indicates that FDS should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.54, FDS is doing good in the industry, outperforming 69.62% of the companies in the same industry.
- FDS has a Quick Ratio of 1.54. This is a normal value and indicates that FDS is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of FDS (1.54) is better than 69.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 2.46% over the past year.
- The Earnings Per Share has been growing by 9.32% on average over the past years. This is quite good.
- Looking at the last year, FDS shows a small growth in Revenue. The Revenue has grown by 5.88% in the last year.
- Measured over the past years, FDS shows a quite strong growth in Revenue. The Revenue has been growing by 9.22% on average per year.
EPS 1Y (TTM)2.46%
EPS 3Y8.16%
EPS 5Y9.32%
EPS Q2Q%3.2%
Revenue 1Y (TTM)5.88%
Revenue growth 3Y7.98%
Revenue growth 5Y9.22%
Sales Q2Q%6.85%
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 9.08% yearly.
- Based on estimates for the next years, FDS will show a small growth in Revenue. The Revenue will grow by 5.26% on average per year.
EPS Next Y4.29%
EPS Next 2Y6.45%
EPS Next 3Y7.49%
EPS Next 5Y9.08%
Revenue Next Year5.68%
Revenue Next 2Y5.49%
Revenue Next 3Y5.53%
Revenue Next 5Y5.26%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- FDS is valuated correctly with a Price/Earnings ratio of 15.70.
- FDS's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of FDS to the average of the S&P500 Index (28.87), we can say FDS is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 13.97, the valuation of FDS can be described as correct.
- FDS's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. FDS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 13.97 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FDS is valued cheaper than 84.81% of the companies in the same industry.
- 67.51% of the companies in the same industry are more expensive than FDS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.53 | ||
| EV/EBITDA | 12.97 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FDS does not grow enough to justify the current Price/Earnings ratio.
- FDS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.66
PEG (5Y)1.69
EPS Next 2Y6.45%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
- FDS has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
- FDS's Dividend Yield is comparable with the industry average which is at 5.87.
- FDS's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
- On average, the dividend of FDS grows each year by 7.85%, which is quite nice.
- FDS has paid a dividend for at least 10 years, which is a reliable track record.
- FDS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.85%
Div Incr Years25
Div Non Decr Years25
5.3 Sustainability
- 27.04% of the earnings are spent on dividend by FDS. This is a low number and sustainable payout ratio.
- FDS's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP27.04%
EPS Next 2Y6.45%
EPS Next 3Y7.49%
FACTSET RESEARCH SYSTEMS INC / FDS FAQ
What is the ChartMill fundamental rating of FACTSET RESEARCH SYSTEMS INC (FDS) stock?
ChartMill assigns a fundamental rating of 7 / 10 to FDS.
Can you provide the valuation status for FACTSET RESEARCH SYSTEMS INC?
ChartMill assigns a valuation rating of 5 / 10 to FACTSET RESEARCH SYSTEMS INC (FDS). This can be considered as Fairly Valued.
What is the profitability of FDS stock?
FACTSET RESEARCH SYSTEMS INC (FDS) has a profitability rating of 8 / 10.
Can you provide the financial health for FDS stock?
The financial health rating of FACTSET RESEARCH SYSTEMS INC (FDS) is 7 / 10.
Can you provide the dividend sustainability for FDS stock?
The dividend rating of FACTSET RESEARCH SYSTEMS INC (FDS) is 6 / 10 and the dividend payout ratio is 27.04%.