FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
USA - NYSE:FICO - US3032501047 - Common Stock
1674.8 USD
+45.6 (+2.8%)
1674.8 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FICO. FICO was compared to 284 industry peers in the Software industry. FICO has an excellent profitability rating, but there are some minor concerns on its financial health. FICO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
FICO had positive earnings in the past year.
FICO had a positive operating cash flow in the past year.
FICO had positive earnings in 4 of the past 5 years.
Of the past 5 years FICO 4 years had a positive operating cash flow.
1.2 Ratios
FICO has a better Return On Assets (33.98%) than 98.24% of its industry peers.
With an excellent Return On Invested Capital value of 63.82%, FICO belongs to the best of the industry, outperforming 99.65% 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 3 year average ROIC (41.13%) for FICO is below the current ROIC(63.82%), indicating increased profibility in the last year.
| 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
FICO's Profit Margin of 32.80% is amongst the best of the industry. FICO outperforms 91.90% of its industry peers.
FICO's Profit Margin has improved in the last couple of years.
The Operating Margin of FICO (45.87%) is better than 96.83% 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 87.68% 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.
FICO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 13.07 indicates that FICO is not in any danger for bankruptcy at the moment.
FICO's Altman-Z score of 13.07 is amongst the best of the industry. FICO outperforms 89.79% of its industry peers.
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.
The Debt to FCF ratio of FICO (3.72) is better than 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 13.07 |
ROIC/WACC5.8
WACC11.01%
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.
Looking at the Current ratio, with a value of 0.92, FICO is doing worse than 75.00% of the companies in the same industry.
A Quick Ratio of 0.92 indicates that FICO may have some problems paying its short term obligations.
FICO has a worse Quick ratio (0.92) than 74.30% 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 25.99% over the past year.
Measured over the past years, FICO shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.08% on average per year.
EPS 1Y (TTM)25.99%
EPS 3Y20.14%
EPS 5Y25.08%
EPS Q2Q%18.35%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.65%
3.2 Future
FICO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.98% yearly.
The Revenue is expected to grow by 15.83% on average over the next years. This is quite good.
EPS Next Y30.89%
EPS Next 2Y28.76%
EPS Next 3Y29.44%
EPS Next 5Y24.98%
Revenue Next Year18.59%
Revenue Next 2Y17.48%
Revenue Next 3Y18.84%
Revenue Next 5Y15.83%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 55.99, FICO can be considered very expensive at the moment.
FICO's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.67. FICO is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 42.78, FICO can be considered very expensive at the moment.
FICO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, FICO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.99 | ||
| Fwd PE | 42.78 |
4.2 Price Multiples
65.14% of the companies in the same industry are more expensive than FICO, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as FICO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.74 | ||
| EV/EBITDA | 46.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FICO has an outstanding profitability rating, which may justify a higher PE ratio.
FICO's earnings are expected to grow with 29.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.81
PEG (5Y)2.23
EPS Next 2Y28.76%
EPS Next 3Y29.44%
5. Dividend
5.1 Amount
FICO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1674.8
+45.6 (+2.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.25%
Inst Owner Change-1.96%
Ins Owners2.35%
Ins Owner Change-0.46%
Market Cap40.20B
Revenue(TTM)N/A
Net Income(TTM)632.62M
Analysts77.86
Price Target2043.76 (22.03%)
Short Float %4.09%
Short Ratio2.79
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)6.46%
PT rev (3m)-5.79%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)-4.22%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.99 | ||
| Fwd PE | 42.78 | ||
| P/S | 20.84 | ||
| P/FCF | 53.74 | ||
| P/OCF | 51.43 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 46.34 |
EPS(TTM)29.91
EY1.79%
EPS(NY)39.15
Fwd EY2.34%
FCF(TTM)31.16
FCFY1.86%
OCF(TTM)32.57
OCFY1.94%
SpS80.37
BVpS-58.23
TBVpS-90.95
PEG (NY)1.81
PEG (5Y)2.23
Graham NumberN/A
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%
ROICexgc growth 3Y-54.87%
ROICexgc 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 | 13.07 |
F-Score7
WACC11.01%
ROIC/WACC5.8
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)25.99%
EPS 3Y20.14%
EPS 5Y25.08%
EPS Q2Q%18.35%
EPS Next Y30.89%
EPS Next 2Y28.76%
EPS Next 3Y29.44%
EPS Next 5Y24.98%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.65%
Revenue Next Year18.59%
Revenue Next 2Y17.48%
Revenue Next 3Y18.84%
Revenue Next 5Y15.83%
EBIT growth 1Y26.02%
EBIT growth 3Y21.08%
EBIT growth 5Y23.68%
EBIT Next Year36.55%
EBIT Next 3Y25.36%
EBIT Next 5Y24.36%
FCF growth 1Y70.13%
FCF growth 3Y13.43%
FCF growth 5Y20.77%
OCF growth 1Y73.81%
OCF growth 3Y14.31%
OCF growth 5Y19.44%
FAIR ISAAC CORP / FICO FAQ
What is the ChartMill fundamental rating of FAIR ISAAC CORP (FICO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to FICO.
What is the valuation status for FICO stock?
ChartMill assigns a valuation rating of 3 / 10 to FAIR ISAAC CORP (FICO). This can be considered as Overvalued.
Can you provide the profitability details for FAIR ISAAC CORP?
FAIR ISAAC CORP (FICO) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for FICO stock?
The Earnings per Share (EPS) of FAIR ISAAC CORP (FICO) is expected to grow by 30.89% in the next year.
Can you provide the dividend sustainability for FICO stock?
The dividend rating of FAIR ISAAC CORP (FICO) is 0 / 10 and the dividend payout ratio is 0%.