FACTSET RESEARCH SYSTEMS INC (FDS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FDS - US3030751057 - Common Stock
286.68 USD
-2.11 (-0.73%)
286.68 USD
0 (0%)
Overall FDS gets a fundamental rating of 7 out of 10. We evaluated FDS against 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 has a correct valuation and a medium growth rate. This makes FDS very considerable 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.
- In the past 5 years FDS has always been profitable.
- In the past 5 years FDS always reported a positive cash flow from operatings.
1.2 Ratios
- FDS has a better Return On Assets (14.21%) than 93.70% of its industry peers.
- With an excellent Return On Equity value of 27.66%, FDS belongs to the best of the industry, outperforming 93.28% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 16.45%, FDS belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
- FDS had an Average Return On Invested Capital over the past 3 years of 16.37%. This 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 65.13% of its industry peers.
- FDS's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 31.73%, FDS is in the better half of the industry, outperforming 60.92% of the companies in the same industry.
- In the last couple of years the Operating Margin of FDS has grown nicely.
- The Gross Margin of FDS (52.26%) is comparable to the rest of the industry.
- 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
- The number of shares outstanding for FDS has been reduced 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
- 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.
- FDS has a better Altman-Z score (5.16) than 85.29% of its industry peers.
- FDS has a debt to FCF ratio of 2.11. This is a good value and a sign of high solvency as FDS would need 2.11 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 2.11, FDS belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
- A Debt/Equity ratio of 0.63 indicates that FDS is somewhat dependend on debt financing.
- The Debt to Equity ratio of FDS (0.63) is better than 62.18% 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.
- The Current ratio of FDS (1.54) is better than 69.75% of its industry peers.
- A Quick Ratio of 1.54 indicates that FDS should not have too much problems paying its short term obligations.
- FDS's Quick ratio of 1.54 is fine compared to the rest of the industry. FDS outperforms 69.75% 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.
- FDS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.32% yearly.
- The Revenue has been growing slightly by 5.88% in the past 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
- The Earnings Per Share is expected to grow by 9.08% on average over the next years. This is quite good.
- FDS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.26% yearly.
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
- With a Price/Earnings ratio of 16.76, FDS is valued correctly.
- The rest of the industry has a similar Price/Earnings ratio as FDS.
- FDS is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- FDS is valuated correctly with a Price/Forward Earnings ratio of 14.91.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FDS is on the same level as its industry peers.
- FDS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 14.91 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FDS is valued cheaper than 84.87% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, FDS is valued a bit cheaper than 68.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.57 | ||
| EV/EBITDA | 12.99 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of FDS may justify a higher PE ratio.
PEG (NY)3.9
PEG (5Y)1.8
EPS Next 2Y6.45%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.52%, FDS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 5.87, FDS has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, FDS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
- The dividend of FDS is nicely growing with an annual growth rate of 7.85%!
- 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)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%.