FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
USA - NYSE:FICO - US3032501047 - Common Stock
1570.36 USD
+18.53 (+1.19%)
We assign a fundamental rating of 6 out of 10 to FICO. FICO was compared to 280 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 is growing strongly while it is still valued neutral. This is a good combination! These ratings could make FICO a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
FICO had positive earnings in the past year.
In the past year FICO had a positive cash flow from operations.
In the past 5 years FICO has always been profitable.
FICO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FICO has a Return On Assets of 33.98%. This is amongst the best in the industry. FICO outperforms 97.86% of its industry peers.
With an excellent Return On Invested Capital value of 63.82%, FICO belongs to the best of the industry, outperforming 99.29% of the companies in the same industry.
FICO had an Average Return On Invested Capital over the past 3 years of 41.13%. This is significantly above the industry average of 11.85%.
The last Return On Invested Capital (63.82%) for FICO is above the 3 year average (41.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.98% | ||
| ROE | N/A | ||
| ROIC | 63.82% |
ROA(3y)27.67%
ROA(5y)24.55%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)41.13%
ROIC(5y)35.64%
1.3 Margins
With an excellent Profit Margin value of 32.80%, FICO belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
In the last couple of years the Profit Margin of FICO has grown nicely.
FICO has a better Operating Margin (45.87%) than 97.14% of its industry peers.
In the last couple of years the Operating Margin of FICO has grown nicely.
FICO's Gross Margin of 81.75% is amongst the best of the industry. FICO outperforms 87.14% of its industry peers.
In the last couple of years the Gross Margin of FICO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.87% | ||
| PM (TTM) | 32.8% | ||
| GM | 81.75% |
OM growth 3Y10.81%
OM growth 5Y14.35%
PM growth 3Y0.09%
PM growth 5Y12.51%
GM growth 3Y2.17%
GM growth 5Y2.36%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FICO is creating value.
The number of shares outstanding for FICO has been reduced compared to 1 year ago.
FICO has less shares outstanding than it did 5 years ago.
FICO has a worse debt/assets ratio than last year.
2.2 Solvency
FICO has an Altman-Z score of 12.73. This indicates that FICO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.73, FICO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
FICO has a debt to FCF ratio of 3.72. This is a good value and a sign of high solvency as FICO would need 3.72 years to pay back of all of its debts.
FICO's Debt to FCF ratio of 3.72 is fine compared to the rest of the industry. FICO outperforms 61.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 12.73 |
ROIC/WACC5.84
WACC10.93%
2.3 Liquidity
FICO has a Current Ratio of 0.92. This is a bad value and indicates that FICO is not financially healthy enough and could expect problems in meeting its short term obligations.
FICO has a Current ratio of 0.92. This is in the lower half of the industry: FICO underperforms 75.36% of its industry peers.
FICO has a Quick Ratio of 0.92. This is a bad value and indicates that FICO is not financially healthy enough and could expect problems in meeting its short term obligations.
FICO has a Quick ratio of 0.92. This is in the lower half of the industry: FICO underperforms 74.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.27% over the past year.
The Earnings Per Share has been growing by 25.85% on average over the past years. This is a very strong growth
The Revenue has grown by 16.66% in the past year. This is quite good.
The Revenue has been growing by 8.16% on average over the past years. This is quite good.
EPS 1Y (TTM)29.27%
EPS 3Y21.92%
EPS 5Y25.85%
EPS Q2Q%37.12%
Revenue 1Y (TTM)16.66%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%19.78%
3.2 Future
FICO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.92% yearly.
FICO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.61% yearly.
EPS Next Y26.82%
EPS Next 2Y23.62%
EPS Next 3Y23.61%
EPS Next 5Y22.92%
Revenue Next Year16.03%
Revenue Next 2Y14.97%
Revenue Next 3Y14.96%
Revenue Next 5Y14.61%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 54.70, FICO can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as FICO.
FICO is valuated expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 43.28 indicates a quite expensive valuation of FICO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FICO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of FICO to the average of the S&P500 Index (22.70), we can say FICO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.7 | ||
| Fwd PE | 43.28 |
4.2 Price Multiples
FICO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FICO is cheaper than 66.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FICO is valued a bit cheaper than the industry average as 62.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.39 | ||
| EV/EBITDA | 44.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FICO does not grow enough to justify the current Price/Earnings ratio.
FICO has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FICO's earnings are expected to grow with 23.61% in the coming years.
PEG (NY)2.04
PEG (5Y)2.12
EPS Next 2Y23.62%
EPS Next 3Y23.61%
5. Dividend
5.1 Amount
FICO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:FICO (9/18/2025, 10:07:14 AM)
1570.36
+18.53 (+1.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners89.67%
Inst Owner Change-4.97%
Ins Owners2.53%
Ins Owner Change-0.46%
Market Cap37.69B
Analysts78.46
Price Target1919.74 (22.25%)
Short Float %3.96%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.02%
Min EPS beat(2)2.91%
Max EPS beat(2)9.13%
EPS beat(4)3
Avg EPS beat(4)1.49%
Min EPS beat(4)-6.46%
Max EPS beat(4)9.13%
EPS beat(8)4
Avg EPS beat(8)-0.74%
EPS beat(12)6
Avg EPS beat(12)-0.2%
EPS beat(16)10
Avg EPS beat(16)3.83%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)2.08%
Revenue beat(4)1
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-4.62%
Max Revenue beat(4)2.08%
Revenue beat(8)1
Avg Revenue beat(8)-1.62%
Revenue beat(12)2
Avg Revenue beat(12)-1.09%
Revenue beat(16)3
Avg Revenue beat(16)-1.16%
PT rev (1m)-2.31%
PT rev (3m)-15.5%
EPS NQ rev (1m)-1.06%
EPS NQ rev (3m)-7.63%
EPS NY rev (1m)0.72%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.7 | ||
| Fwd PE | 43.28 | ||
| P/S | 19.54 | ||
| P/FCF | 50.39 | ||
| P/OCF | 48.22 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 44.28 |
EPS(TTM)28.71
EY1.83%
EPS(NY)36.28
Fwd EY2.31%
FCF(TTM)31.16
FCFY1.98%
OCF(TTM)32.57
OCFY2.07%
SpS80.37
BVpS-58.23
TBVpS-90.95
PEG (NY)2.04
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 33.98% | ||
| ROE | N/A | ||
| ROCE | 81.08% | ||
| ROIC | 63.82% | ||
| ROICexc | 77.19% | ||
| ROICexgc | 595.74% | ||
| OM | 45.87% | ||
| PM (TTM) | 32.8% | ||
| GM | 81.75% | ||
| FCFM | 38.77% |
ROA(3y)27.67%
ROA(5y)24.55%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)41.13%
ROIC(5y)35.64%
ROICexc(3y)46.48%
ROICexc(5y)41.08%
ROICexgc(3y)170.74%
ROICexgc(5y)438.55%
ROCE(3y)52.25%
ROCE(5y)45.27%
ROICexcg growth 3Y-54.87%
ROICexcg growth 5Y-33.18%
ROICexc growth 3Y6.74%
ROICexc growth 5Y15.31%
OM growth 3Y10.81%
OM growth 5Y14.35%
PM growth 3Y0.09%
PM growth 5Y12.51%
GM growth 3Y2.17%
GM growth 5Y2.36%
F-Score7
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.72 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 228.57% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 7.64 | ||
| Cash Conversion | 86.88% | ||
| Profit Quality | 118.22% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 12.73 |
F-Score7
WACC10.93%
ROIC/WACC5.84
Cap/Depr(3y)95.02%
Cap/Depr(5y)77.4%
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.98%
Profit Quality(3y)120%
Profit Quality(5y)122.25%
High Growth Momentum
Growth
EPS 1Y (TTM)29.27%
EPS 3Y21.92%
EPS 5Y25.85%
EPS Q2Q%37.12%
EPS Next Y26.82%
EPS Next 2Y23.62%
EPS Next 3Y23.61%
EPS Next 5Y22.92%
Revenue 1Y (TTM)16.66%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%19.78%
Revenue Next Year16.03%
Revenue Next 2Y14.97%
Revenue Next 3Y14.96%
Revenue Next 5Y14.61%
EBIT growth 1Y26.02%
EBIT growth 3Y21.08%
EBIT growth 5Y23.68%
EBIT Next Year29.35%
EBIT Next 3Y23%
EBIT Next 5Y21.3%
FCF growth 1Y70.13%
FCF growth 3Y13.43%
FCF growth 5Y20.77%
OCF growth 1Y73.81%
OCF growth 3Y14.31%
OCF growth 5Y19.44%