FAIR ISAAC CORP (FICO)
US3032501047 - Common Stock
Taking everything into account, FICO scores 6 out of 10 in our fundamental rating. FICO was compared to 279 industry peers in the Software industry. While FICO has a great profitability rating, there are some minor concerns on its financial health. FICO is valued quite expensive, but it does show an excellent growth. 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.
FICO had a positive operating cash flow in the past year.
FICO had positive earnings in each of the past 5 years.
In the past 5 years FICO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FICO (29.85%) is better than 98.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 43.17%, FICO belongs to the top of the industry, outperforming 99.28% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FICO is significantly above the industry average of 11.54%.
The 3 year average ROIC (41.13%) for FICO is below the current ROIC(43.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.85% | ||
| ROE | N/A | ||
| ROIC | 43.17% |
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
Looking at the Profit Margin, with a value of 29.86%, FICO belongs to the top of the industry, outperforming 94.98% of the companies in the same industry.
FICO's Profit Margin has improved in the last couple of years.
FICO has a Operating Margin of 42.71%. This is amongst the best in the industry. FICO outperforms 98.92% of its industry peers.
FICO's Operating Margin has improved in the last couple of years.
The Gross Margin of FICO (79.73%) is better than 78.85% of its industry peers.
In the last couple of years the Gross Margin of FICO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.71% | ||
| PM (TTM) | 29.86% | ||
| GM | 79.73% |
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
FICO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
FICO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FICO has less shares outstanding
FICO has a worse debt/assets ratio than last year.
2.2 Solvency
FICO has an Altman-Z score of 18.50. This indicates that FICO is financially healthy and has little risk of bankruptcy at the moment.
FICO's Altman-Z score of 18.50 is amongst the best of the industry. FICO outperforms 91.40% of its industry peers.
FICO has a debt to FCF ratio of 3.65. This is a good value and a sign of high solvency as FICO would need 3.65 years to pay back of all of its debts.
FICO's Debt to FCF ratio of 3.65 is fine compared to the rest of the industry. FICO outperforms 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 18.5 |
ROIC/WACC3.65
WACC11.83%
2.3 Liquidity
FICO has a Current Ratio of 1.62. This is a normal value and indicates that FICO is financially healthy and should not expect problems in meeting its short term obligations.
FICO has a Current ratio (1.62) which is comparable to the rest of the industry.
A Quick Ratio of 1.62 indicates that FICO should not have too much problems paying its short term obligations.
The Quick ratio of FICO (1.62) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.45% 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
FICO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.48%.
The Revenue has been growing by 8.16% on average over the past years. This is quite good.
EPS 1Y (TTM)20.45%
EPS 3Y21.92%
EPS 5Y25.85%
EPS Q2Q%30.54%
Revenue 1Y (TTM)13.48%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%16.44%
3.2 Future
FICO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.62% yearly.
FICO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.21% yearly.
EPS Next Y28.51%
EPS Next 2Y26.42%
EPS Next 3Y24.88%
EPS Next 5Y21.62%
Revenue Next Year16.83%
Revenue Next 2Y14.57%
Revenue Next 3Y16.31%
Revenue Next 5Y12.21%
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
A Price/Earnings ratio of 98.48 indicates a quite expensive valuation of FICO.
FICO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.96, FICO is valued quite expensively.
The Price/Forward Earnings ratio is 76.63, which means the current valuation is very expensive for FICO.
FICO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.82. FICO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.48 | ||
| Fwd PE | 76.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FICO is valued a bit cheaper than 61.65% of the companies in the same industry.
FICO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 93.72 | ||
| EV/EBITDA | 78.93 |
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 24.88% in the coming years.
PEG (NY)3.45
PEG (5Y)3.81
EPS Next 2Y26.42%
EPS Next 3Y24.88%
5. Dividend
5.1 Amount
FICO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FAIR ISAAC CORP
NYSE:FICO (11/21/2024, 10:40:45 PM)
After market: 2337.83 0 (0%)2337.83
+28.23 (+1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
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Market Cap56.93B
Analysts
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| Industry Rank | Sector Rank | ||
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| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.48 | ||
| Fwd PE | 76.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
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PEG (NY)3.45
PEG (5Y)3.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.85% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.71% | ||
| PM (TTM) | 29.86% | ||
| GM | 79.73% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
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PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)20.45%
EPS 3Y21.92%
EPS 5Y
EPS Q2Q%
EPS Next Y28.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.48%
Revenue growth 3Y9.27%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
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