FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
NYSE:FICO - New York Stock Exchange, Inc. - US3032501047 - Common Stock - Currency: USD
Taking everything into account, FICO scores 6 out of 10 in our fundamental rating. FICO was compared to 283 industry peers in the Software industry. FICO scores excellent on profitability, but there are some minor concerns on its financial health. FICO is valued quite expensive, but it does show an excellent growth. These ratings would make FICO suitable 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.
Each year in the past 5 years FICO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 31.89%, FICO belongs to the best of the industry, outperforming 97.88% of the companies in the same industry.
With an excellent Return On Invested Capital value of 43.60%, FICO belongs to the best of the industry, outperforming 98.94% 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 11.25%.
The last Return On Invested Capital (43.60%) for FICO is above the 3 year average (41.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.89% | ||
| ROE | N/A | ||
| ROIC | 43.6% |
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 30.66%, FICO belongs to the top of the industry, outperforming 93.29% 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 42.91%. This is amongst the best in the industry. FICO outperforms 98.23% of its industry peers.
FICO's Operating Margin has improved in the last couple of years.
FICO has a Gross Margin of 80.17%. This is amongst the best in the industry. FICO outperforms 81.27% of its industry peers.
FICO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.91% | ||
| PM (TTM) | 30.66% | ||
| GM | 80.17% |
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.
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 15.86. This indicates that FICO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 15.86, FICO belongs to the best of the industry, outperforming 92.58% of the companies in the same industry.
The Debt to FCF ratio of FICO is 3.59, which is a good value as it means it would take FICO, 3.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.59, FICO is in the better half of the industry, outperforming 61.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.59 | ||
| Altman-Z | 15.86 |
ROIC/WACC4.03
WACC10.83%
2.3 Liquidity
FICO has a Current Ratio of 1.80. 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 (1.80) which is comparable to the rest of the industry.
A Quick Ratio of 1.80 indicates that FICO should not have too much problems paying its short term obligations.
FICO has a Quick ratio of 1.80. This is comparable to the rest of the industry: FICO outperforms 56.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.01% 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 25.85% on average per year.
The Revenue has grown by 14.49% in the past year. This is quite good.
FICO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.16% yearly.
EPS 1Y (TTM)22.01%
EPS 3Y21.92%
EPS 5Y25.85%
EPS Q2Q%20.37%
Revenue 1Y (TTM)14.49%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%15.16%
3.2 Future
FICO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.73% yearly.
Based on estimates for the next years, FICO will show a quite strong growth in Revenue. The Revenue will grow by 14.29% on average per year.
EPS Next Y24.16%
EPS Next 2Y24.58%
EPS Next 3Y25.43%
EPS Next 5Y22.73%
Revenue Next Year15.86%
Revenue Next 2Y15.73%
Revenue Next 3Y16.2%
Revenue Next 5Y14.29%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 77.21, the valuation of FICO can be described as expensive.
FICO's Price/Earnings is on the same level as the industry average.
FICO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.29.
With a Price/Forward Earnings ratio of 51.80, FICO can be considered very expensive at the moment.
FICO's Price/Forward Earnings ratio is in line with the industry average.
FICO is valuated expensively when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.21 | ||
| Fwd PE | 51.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FICO is valued a bit cheaper than 62.54% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as FICO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.21 | ||
| EV/EBITDA | 62.92 |
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.
A more expensive valuation may be justified as FICO's earnings are expected to grow with 25.43% in the coming years.
PEG (NY)3.2
PEG (5Y)2.99
EPS Next 2Y24.58%
EPS Next 3Y25.43%
5. Dividend
5.1 Amount
No dividends for FICO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1908.69
+8.91 (+0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners88.67%
Inst Owner Change0%
Ins Owners2.53%
Ins Owner Change2.96%
Market Cap46.61B
Analysts75.83
Price Target2124.8 (11.32%)
Short Float %2.61%
Short Ratio2.8
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)1
Avg EPS beat(2)-3.04%
Min EPS beat(2)-6.46%
Max EPS beat(2)0.38%
EPS beat(4)2
Avg EPS beat(4)-1.37%
Min EPS beat(4)-6.46%
Max EPS beat(4)3.61%
EPS beat(8)3
Avg EPS beat(8)-2.4%
EPS beat(12)6
Avg EPS beat(12)1.54%
EPS beat(16)10
Avg EPS beat(16)5.3%
Revenue beat(2)0
Avg Revenue beat(2)-2.64%
Min Revenue beat(2)-4.62%
Max Revenue beat(2)-0.67%
Revenue beat(4)0
Avg Revenue beat(4)-1.71%
Min Revenue beat(4)-4.62%
Max Revenue beat(4)-0.11%
Revenue beat(8)1
Avg Revenue beat(8)-1.32%
Revenue beat(12)2
Avg Revenue beat(12)-0.78%
Revenue beat(16)4
Avg Revenue beat(16)-1.07%
PT rev (1m)-0.32%
PT rev (3m)-4.55%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-3.03%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77.21 | ||
| Fwd PE | 51.8 | ||
| P/S | 26.25 | ||
| P/FCF | 69.21 | ||
| P/OCF | 66.13 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 62.92 |
EPS(TTM)24.72
EY1.3%
EPS(NY)36.84
Fwd EY1.93%
FCF(TTM)27.58
FCFY1.44%
OCF(TTM)28.86
OCFY1.51%
SpS72.7
BVpS-46.61
TBVpS-78.37
PEG (NY)3.2
PEG (5Y)2.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.89% | ||
| ROE | N/A | ||
| ROCE | 55.39% | ||
| ROIC | 43.6% | ||
| ROICexc | 50.35% | ||
| ROICexgc | 144.33% | ||
| OM | 42.91% | ||
| PM (TTM) | 30.66% | ||
| GM | 80.17% | ||
| FCFM | 37.93% |
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-Score8
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.59 | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 215.72% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 6.81 | ||
| Cash Conversion | 90.79% | ||
| Profit Quality | 123.74% | ||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z | 15.86 |
F-Score8
WACC10.83%
ROIC/WACC4.03
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)22.01%
EPS 3Y21.92%
EPS 5Y25.85%
EPS Q2Q%20.37%
EPS Next Y24.16%
EPS Next 2Y24.58%
EPS Next 3Y25.43%
EPS Next 5Y22.73%
Revenue 1Y (TTM)14.49%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%15.16%
Revenue Next Year15.86%
Revenue Next 2Y15.73%
Revenue Next 3Y16.2%
Revenue Next 5Y14.29%
EBIT growth 1Y16.51%
EBIT growth 3Y21.08%
EBIT growth 5Y23.68%
EBIT Next Year27.74%
EBIT Next 3Y25.8%
EBIT Next 5Y21.29%
FCF growth 1Y45.32%
FCF growth 3Y13.43%
FCF growth 5Y20.77%
OCF growth 1Y47.76%
OCF growth 3Y14.31%
OCF growth 5Y19.44%