FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FICO - US3032501047 - Common Stock
1748.25 USD
-39.95 (-2.23%)
1748.25 USD
0 (0%)
Taking everything into account, FICO scores 6 out of 10 in our fundamental rating. FICO was compared to 280 industry peers in the Software industry. FICO has an excellent profitability rating, but there are some minor concerns on its financial health. FICO shows excellent growth, but is valued quite expensive already.
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.
FICO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 34.90%, FICO belongs to the top of the industry, outperforming 98.57% of the companies in the same industry.
FICO has a better Return On Invested Capital (73.98%) than 99.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FICO is significantly above the industry average of 11.97%.
The last Return On Invested Capital (73.98%) for FICO is above the 3 year average (53.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.9% | ||
| ROE | N/A | ||
| ROIC | 73.98% |
ROA(3y)30.67%
ROA(5y)28.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)53.64%
ROIC(5y)46.65%
1.3 Margins
FICO has a Profit Margin of 32.75%. This is amongst the best in the industry. FICO outperforms 92.14% of its industry peers.
FICO's Profit Margin has improved in the last couple of years.
FICO has a better Operating Margin (47.00%) than 97.14% of its industry peers.
In the last couple of years the Operating Margin of FICO has grown nicely.
FICO has a Gross Margin of 82.23%. This is amongst the best in the industry. FICO outperforms 87.86% of its industry peers.
In the last couple of years the Gross Margin of FICO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47% | ||
| PM (TTM) | 32.75% | ||
| GM | 82.23% |
OM growth 3Y6.07%
OM growth 5Y12.28%
PM growth 3Y6.48%
PM growth 5Y12.39%
GM growth 3Y1.75%
GM growth 5Y2.67%
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.
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 13.00. This indicates that FICO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FICO (13.00) is better than 90.71% of its industry peers.
The Debt to FCF ratio of FICO is 4.14, which is a neutral value as it means it would take FICO, 4.14 years of fcf income to pay off all of its debts.
FICO's Debt to FCF ratio of 4.14 is fine compared to the rest of the industry. FICO outperforms 60.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 13 |
ROIC/WACC6.81
WACC10.86%
2.3 Liquidity
A Current Ratio of 0.83 indicates that FICO may have some problems paying its short term obligations.
FICO has a Current ratio of 0.83. This is amonst the worse of the industry: FICO underperforms 81.79% of its industry peers.
A Quick Ratio of 0.83 indicates that FICO may have some problems paying its short term obligations.
With a Quick ratio value of 0.83, FICO is not doing good in the industry: 81.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
FICO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.99%, which is quite impressive.
FICO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.08% yearly.
The Revenue has grown by 15.91% in the past year. This is quite good.
The Revenue has been growing by 8.99% on average over the past years. This is quite good.
EPS 1Y (TTM)25.99%
EPS 3Y20.14%
EPS 5Y25.08%
EPS Q2Q%18.35%
Revenue 1Y (TTM)15.91%
Revenue growth 3Y13.07%
Revenue growth 5Y8.99%
Sales Q2Q%13.65%
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 24.98% on average per year.
Based on estimates for the next years, FICO will show a quite strong growth in Revenue. The Revenue will grow by 15.83% on average per year.
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.
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 58.45, the valuation of FICO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as FICO.
Compared to an average S&P500 Price/Earnings ratio of 25.65, FICO is valued quite expensively.
A Price/Forward Earnings ratio of 44.66 indicates a quite expensive valuation of FICO.
FICO's Price/Forward Earnings ratio is in line with the industry average.
FICO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 34.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.45 | ||
| Fwd PE | 44.66 |
4.2 Price Multiples
FICO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FICO is cheaper than 63.21% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FICO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.75 | ||
| EV/EBITDA | 47.21 |
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.
FICO's earnings are expected to grow with 29.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.89
PEG (5Y)2.33
EPS Next 2Y28.76%
EPS Next 3Y29.44%
5. Dividend
5.1 Amount
No dividends for FICO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1748.25
-39.95 (-2.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.25%
Inst Owner Change2.48%
Ins Owners2.35%
Ins Owner Change-0.58%
Market Cap41.96B
Revenue(TTM)1.99B
Net Income(TTM)651.95M
Analysts77.86
Price Target2034.12 (16.35%)
Short Float %4.44%
Short Ratio3.31
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)6.24%
Min EPS beat(2)3.35%
Max EPS beat(2)9.13%
EPS beat(4)3
Avg EPS beat(4)2.24%
Min EPS beat(4)-6.46%
Max EPS beat(4)9.13%
EPS beat(8)5
Avg EPS beat(8)0.38%
EPS beat(12)6
Avg EPS beat(12)-0.32%
EPS beat(16)10
Avg EPS beat(16)2.61%
Revenue beat(2)1
Avg Revenue beat(2)0.29%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)2.08%
Revenue beat(4)1
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-4.62%
Max Revenue beat(4)2.08%
Revenue beat(8)1
Avg Revenue beat(8)-1.57%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)3
Avg Revenue beat(16)-0.91%
PT rev (1m)5.8%
PT rev (3m)5.28%
EPS NQ rev (1m)0.85%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)7.9%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.45 | ||
| Fwd PE | 44.66 | ||
| P/S | 21.08 | ||
| P/FCF | 56.75 | ||
| P/OCF | 53.87 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 47.21 |
EPS(TTM)29.91
EY1.71%
EPS(NY)39.15
Fwd EY2.24%
FCF(TTM)30.81
FCFY1.76%
OCF(TTM)32.45
OCFY1.86%
SpS82.95
BVpS-72.74
TBVpS-105.38
PEG (NY)1.89
PEG (5Y)2.33
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.9% | ||
| ROE | N/A | ||
| ROCE | 91.84% | ||
| ROIC | 73.98% | ||
| ROICexc | 85.19% | ||
| ROICexgc | 743.07% | ||
| OM | 47% | ||
| PM (TTM) | 32.75% | ||
| GM | 82.23% | ||
| FCFM | 37.14% |
ROA(3y)30.67%
ROA(5y)28.58%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)53.64%
ROIC(5y)46.65%
ROICexc(3y)61.06%
ROICexc(5y)53.77%
ROICexgc(3y)354.45%
ROICexgc(5y)571.57%
ROCE(3y)66.59%
ROCE(5y)57.92%
ROICexgc growth 3Y53.89%
ROICexgc growth 5Y41.9%
ROICexc growth 3Y23.98%
ROICexc growth 5Y26.25%
OM growth 3Y6.07%
OM growth 5Y12.28%
PM growth 3Y6.48%
PM growth 5Y12.39%
GM growth 3Y1.75%
GM growth 5Y2.67%
F-Score7
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.14 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 263.56% | ||
| Cap/Sales | 1.98% | ||
| Interest Coverage | 9.04 | ||
| Cash Conversion | 81.92% | ||
| Profit Quality | 113.41% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 13 |
F-Score7
WACC10.86%
ROIC/WACC6.81
Cap/Depr(3y)173.05%
Cap/Depr(5y)115.64%
Cap/Sales(3y)1.38%
Cap/Sales(5y)1.03%
Profit Quality(3y)112.89%
Profit Quality(5y)115.92%
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)15.91%
Revenue growth 3Y13.07%
Revenue growth 5Y8.99%
Sales Q2Q%13.65%
Revenue Next Year18.59%
Revenue Next 2Y17.48%
Revenue Next 3Y18.84%
Revenue Next 5Y15.83%
EBIT growth 1Y27.55%
EBIT growth 3Y19.94%
EBIT growth 5Y22.37%
EBIT Next Year20.02%
EBIT Next 3Y25.54%
EBIT Next 5Y21.93%
FCF growth 1Y21.73%
FCF growth 3Y13.67%
FCF growth 5Y16.61%
OCF growth 1Y23.04%
OCF growth 3Y15.2%
OCF growth 5Y16.37%
FAIR ISAAC CORP / FICO FAQ
What is the ChartMill fundamental rating of FAIR ISAAC CORP (FICO) stock?
ChartMill assigns a fundamental rating of 6 / 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 9 / 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%.