FAIR ISAAC CORP (FICO)
US3032501047 - Common Stock
We assign a fundamental rating of 7 out of 10 to FICO. FICO was compared to 277 industry peers in the Software industry. FICO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FICO shows excellent growth, but is valued quite expensive already. These ratings would make FICO suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year FICO was profitable.
In the past year FICO had a positive cash flow from operations.
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
With an excellent Return On Assets value of 28.25%, FICO belongs to the best of the industry, outperforming 98.55% of the companies in the same industry.
FICO's Return On Invested Capital of 38.92% is amongst the best of the industry. FICO outperforms 99.28% of its industry peers.
FICO had an Average Return On Invested Capital over the past 3 years of 37.35%. This is significantly above the industry average of 10.18%.
The 3 year average ROIC (37.35%) for FICO is below the current ROIC(38.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.25% | ||
| ROE | N/A | ||
| ROIC | 38.92% |
ROA(3y)26.06%
ROA(5y)21.26%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)37.35%
ROIC(5y)31.11%
1.3 Margins
FICO's Profit Margin of 29.98% is amongst the best of the industry. FICO outperforms 94.93% of its industry peers.
In the last couple of years the Profit Margin of FICO has grown nicely.
Looking at the Operating Margin, with a value of 42.94%, FICO belongs to the top of the industry, outperforming 99.28% of the companies in the same industry.
In the last couple of years the Operating Margin of FICO has grown nicely.
FICO has a better Gross Margin (79.74%) than 80.43% of its industry peers.
In the last couple of years the Gross Margin of FICO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.94% | ||
| PM (TTM) | 29.98% | ||
| GM | 79.74% |
OM growth 3Y17.14%
OM growth 5Y19.28%
PM growth 3Y15.82%
PM growth 5Y17.53%
GM growth 3Y3.29%
GM growth 5Y2.95%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FICO is creating value.
The number of shares outstanding for FICO has been reduced compared to 1 year ago.
Compared to 5 years ago, FICO has less shares outstanding
The debt/assets ratio for FICO has been reduced compared to a year ago.
2.2 Solvency
FICO has an Altman-Z score of 14.08. This indicates that FICO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FICO (14.08) is better than 92.75% of its industry peers.
The Debt to FCF ratio of FICO is 4.37, which is a neutral value as it means it would take FICO, 4.37 years of fcf income to pay off all of its debts.
FICO has a better Debt to FCF ratio (4.37) than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 14.08 |
ROIC/WACC3.98
WACC9.77%
2.3 Liquidity
A Current Ratio of 2.04 indicates that FICO has no problem at all paying its short term obligations.
FICO's Current ratio of 2.04 is in line compared to the rest of the industry. FICO outperforms 59.06% of its industry peers.
FICO has a Quick Ratio of 2.04. This indicates that FICO is financially healthy and has no problem in meeting its short term obligations.
FICO has a Quick ratio (2.04) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
FICO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.71%, which is quite impressive.
The Earnings Per Share has been growing by 25.86% on average over the past years. This is a very strong growth
Looking at the last year, FICO shows a quite strong growth in Revenue. The Revenue has grown by 12.75% in the last year.
Measured over the past years, FICO shows a quite strong growth in Revenue. The Revenue has been growing by 8.64% on average per year.
EPS 1Y (TTM)20.71%
EPS 3Y26.36%
EPS 5Y25.86%
EPS growth Q2Q28.45%
Revenue 1Y (TTM)12.75%
Revenue growth 3Y5.35%
Revenue growth 5Y8.64%
Revenue growth Q2Q14.08%
3.2 Future
Based on estimates for the next years, FICO will show a very strong growth in Earnings Per Share. The EPS will grow by 21.94% on average per year.
FICO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.26% yearly.
EPS Next Y23.06%
EPS Next 2Y23%
EPS Next 3Y20.94%
EPS Next 5Y21.94%
Revenue Next Year11.73%
Revenue Next 2Y12.79%
Revenue Next 3Y12.15%
Revenue Next 5Y13.26%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
FICO is valuated quite expensively with a Price/Earnings ratio of 65.28.
FICO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.60. FICO is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 47.33 indicates a quite expensive valuation of FICO.
FICO's Price/Forward Earnings is on the same level as the industry average.
FICO is valuated expensively when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.28 | ||
| Fwd PE | 47.33 |
4.2 Price Multiples
FICO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FICO is cheaper than 68.12% 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 | 74.65 | ||
| EV/EBITDA | 52.44 |
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 20.94% in the coming years.
PEG (NY)2.83
PEG (5Y)2.52
EPS Next 2Y23%
EPS Next 3Y20.94%
5. Dividend
5.1 Amount
No dividends for FICO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FAIR ISAAC CORP
NYSE:FICO (5/17/2024, 7:04:00 PM)
After market: 1411.35 0 (0%)1411.35
+6.92 (+0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
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Inst Owners
Inst Owner Change
Ins Owners
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Market Cap34.87B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.28 | ||
| Fwd PE | 47.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.83
PEG (5Y)2.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.25% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.94% | ||
| PM (TTM) | 29.98% | ||
| GM | 79.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.94
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 | 2.04 | ||
| Quick Ratio | 2.04 | ||
| 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)
Growth
EPS 1Y (TTM)20.71%
EPS 3Y26.36%
EPS 5Y
EPS growth Q2Q
EPS Next Y23.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.75%
Revenue growth 3Y5.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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