FACTSET RESEARCH SYSTEMS INC (FDS) Stock Fundamental Analysis
NYSE:FDS - New York Stock Exchange, Inc. - US3030751057 - Common Stock - Currency: USD
Taking everything into account, FDS scores 6 out of 10 in our fundamental rating. FDS was compared to 225 industry peers in the Capital Markets industry. FDS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FDS is quite expensive at the moment. It does show a decent growth rate. These ratings would make FDS suitable for quality investing!
1. Profitability
1.1 Basic Checks
FDS had positive earnings in the past year.
FDS had a positive operating cash flow in the past year.
FDS had positive earnings in each of the past 5 years.
FDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FDS's Return On Assets of 13.30% is amongst the best of the industry. FDS outperforms 92.69% of its industry peers.
FDS has a Return On Equity of 27.04%. This is amongst the best in the industry. FDS outperforms 94.98% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.39%, FDS belongs to the top of the industry, outperforming 94.06% of the companies in the same industry.
FDS had an Average Return On Invested Capital over the past 3 years of 14.84%. This is significantly above the industry average of 6.76%.
The 3 year average ROIC (14.84%) for FDS is below the current ROIC(16.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.3% | ||
| ROE | 27.04% | ||
| ROIC | 16.39% |
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 24.16%, FDS is doing good in the industry, outperforming 61.19% of the companies in the same industry.
In the last couple of years the Profit Margin of FDS has remained more or less at the same level.
FDS has a Operating Margin (31.73%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FDS has remained more or less at the same level.
FDS has a better Gross Margin (54.29%) than 63.47% 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) | 24.16% | ||
| GM | 54.29% |
OM growth 3Y2.47%
OM growth 5Y0.98%
PM growth 3Y-0.98%
PM growth 5Y-0.16%
GM growth 3Y-6.57%
GM growth 5Y0.11%
2. Health
2.1 Basic Checks
The number of shares outstanding for FDS remains at a similar level compared to 1 year ago.
The number of shares outstanding for FDS has been reduced compared to 5 years ago.
Compared to 1 year ago, FDS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.05 indicates that FDS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.05, FDS belongs to the top of the industry, outperforming 92.24% of the companies in the same industry.
The Debt to FCF ratio of FDS is 2.53, which is a good value as it means it would take FDS, 2.53 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.53, FDS belongs to the top of the industry, outperforming 82.65% of the companies in the same industry.
FDS has a Debt/Equity ratio of 0.65. This is a neutral value indicating FDS is somewhat dependend on debt financing.
FDS has a better Debt to Equity ratio (0.65) than 65.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 7.05 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
FDS has a Current Ratio of 1.39. This is a normal value and indicates that FDS is financially healthy and should not expect problems in meeting its short term obligations.
FDS's Current ratio of 1.39 is in line compared to the rest of the industry. FDS outperforms 58.90% of its industry peers.
FDS has a Quick Ratio of 1.39. This is a normal value and indicates that FDS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.39, FDS is in line with its industry, outperforming 58.90% of the companies in the same industry.
FDS does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
FDS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.07%, which is quite good.
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.
FDS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.02%.
Measured over the past years, FDS shows a quite strong growth in Revenue. The Revenue has been growing by 8.95% on average per year.
EPS 1Y (TTM)14.07%
EPS 3Y14.53%
EPS 5Y10.47%
EPS Q2Q%6.07%
Revenue 1Y (TTM)5.02%
Revenue growth 3Y11.45%
Revenue growth 5Y8.95%
Sales Q2Q%4.88%
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 8.68% yearly.
Based on estimates for the next years, FDS will show a small growth in Revenue. The Revenue will grow by 5.61% on average per year.
EPS Next Y5.62%
EPS Next 2Y6.65%
EPS Next 3Y7.65%
EPS Next 5Y8.68%
Revenue Next Year5.2%
Revenue Next 2Y5.46%
Revenue Next 3Y5.59%
Revenue Next 5Y5.61%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.65, FDS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, FDS is valued a bit more expensive than 69.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of FDS to the average of the S&P500 Index (29.63), we can say FDS is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 24.68, the valuation of FDS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, FDS is valued a bit more expensive than 66.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. FDS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.65 | ||
| Fwd PE | 24.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FDS is valued a bit cheaper than the industry average as 71.69% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as FDS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.73 | ||
| EV/EBITDA | 22.18 |
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)4.92
PEG (5Y)2.64
EPS Next 2Y6.65%
EPS Next 3Y7.65%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, FDS is not a good candidate for dividend investing.
FDS's Dividend Yield is slightly below the industry average, which is at 10.00.
Compared to an average S&P500 Dividend Yield of 2.29, FDS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
The dividend of FDS is nicely growing with an annual growth rate of 8.63%!
FDS has been paying a dividend for at least 10 years, so it has 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)8.63%
Div Incr Years25
Div Non Decr Years25
5.3 Sustainability
FDS pays out 28.38% of its income as dividend. This is a sustainable payout ratio.
The dividend of FDS is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP28.38%
EPS Next 2Y6.65%
EPS Next 3Y7.65%
461.78
-4.35 (-0.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners95.85%
Inst Owner Change0.09%
Ins Owners0.19%
Ins Owner Change0.58%
Market Cap17.56B
Analysts52.86
Price Target483.4 (4.68%)
Short Float %4.1%
Short Ratio5.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend3.97
Dividend Growth(5Y)8.63%
DP28.38%
Div Incr Years25
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.86%
Min EPS beat(2)1.45%
Max EPS beat(2)2.27%
EPS beat(4)4
Avg EPS beat(4)5.54%
Min EPS beat(4)1.45%
Max EPS beat(4)10.85%
EPS beat(8)6
Avg EPS beat(8)1.28%
EPS beat(12)9
Avg EPS beat(12)3.37%
EPS beat(16)10
Avg EPS beat(16)2.5%
Revenue beat(2)1
Avg Revenue beat(2)0.71%
Min Revenue beat(2)-0.37%
Max Revenue beat(2)1.79%
Revenue beat(4)1
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-1.15%
Max Revenue beat(4)1.79%
Revenue beat(8)1
Avg Revenue beat(8)-0.48%
Revenue beat(12)4
Avg Revenue beat(12)-0.24%
Revenue beat(16)6
Avg Revenue beat(16)-0.2%
PT rev (1m)-0.85%
PT rev (3m)3.35%
EPS NQ rev (1m)-2.27%
EPS NQ rev (3m)-4.81%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.65 | ||
| Fwd PE | 24.68 | ||
| P/S | 7.88 | ||
| P/FCF | 32.73 | ||
| P/OCF | 27.81 | ||
| P/B | 8.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.18 |
EPS(TTM)16.7
EY3.62%
EPS(NY)18.71
Fwd EY4.05%
FCF(TTM)14.11
FCFY3.05%
OCF(TTM)16.61
OCFY3.6%
SpS58.62
BVpS52.37
TBVpS-25.53
PEG (NY)4.92
PEG (5Y)2.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.3% | ||
| ROE | 27.04% | ||
| ROCE | 20.15% | ||
| ROIC | 16.39% | ||
| ROICexc | 18.25% | ||
| ROICexgc | 304.14% | ||
| OM | 31.73% | ||
| PM (TTM) | 24.16% | ||
| GM | 54.29% | ||
| FCFM | 24.06% |
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 3Y-6.57%
GM growth 5Y0.11%
F-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 2.53 | ||
| Debt/EBITDA | 1.54 | ||
| Cap/Depr | 71.05% | ||
| Cap/Sales | 4.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.07% | ||
| Profit Quality | 99.61% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 7.05 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)61.71%
Cap/Depr(5y)83%
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)14.07%
EPS 3Y14.53%
EPS 5Y10.47%
EPS Q2Q%6.07%
EPS Next Y5.62%
EPS Next 2Y6.65%
EPS Next 3Y7.65%
EPS Next 5Y8.68%
Revenue 1Y (TTM)5.02%
Revenue growth 3Y11.45%
Revenue growth 5Y8.95%
Sales Q2Q%4.88%
Revenue Next Year5.2%
Revenue Next 2Y5.46%
Revenue Next 3Y5.59%
Revenue Next 5Y5.61%
EBIT growth 1Y5.14%
EBIT growth 3Y14.2%
EBIT growth 5Y10.02%
EBIT Next Year13.5%
EBIT Next 3Y9.06%
EBIT Next 5YN/A
FCF growth 1Y4.89%
FCF growth 3Y7.56%
FCF growth 5Y10.82%
OCF growth 1Y10.41%
OCF growth 3Y8.05%
OCF growth 5Y10.39%