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 7 out of 10 in our fundamental rating. FICO was compared to 284 industry peers in the Software industry. While FICO has a great profitability rating, there are some minor concerns on its financial health. FICO is not overvalued while it is showing excellent growth. This is an interesting combination. This makes FICO very considerable for growth 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.
In the past 5 years FICO has always been profitable.
FICO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 29.85%, FICO belongs to the best of the industry, outperforming 98.56% of the companies in the same industry.
FICO has a Return On Invested Capital of 43.17%. This is amongst the best in the industry. FICO outperforms 99.28% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FICO is significantly above the industry average of 12.12%.
The last Return On Invested Capital (43.17%) for FICO is above the 3 year average (41.13%), which is a sign of increasing profitability.
| 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
FICO's Profit Margin of 29.86% is amongst the best of the industry. FICO outperforms 93.86% of its industry peers.
FICO's Profit Margin has improved in the last couple of years.
The Operating Margin of FICO (42.71%) is better than 98.19% of its industry peers.
In the last couple of years the Operating Margin of FICO has grown nicely.
FICO's Gross Margin of 79.73% is fine compared to the rest of the industry. FICO outperforms 78.34% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FICO 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
An Altman-Z score of 15.72 indicates that FICO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 15.72, FICO belongs to the top of the industry, outperforming 91.34% of the companies in the same industry.
The Debt to FCF ratio of FICO is 3.65, which is a good value as it means it would take FICO, 3.65 years of fcf income to pay off all of its debts.
FICO has a Debt to FCF ratio of 3.65. This is in the better half of the industry: FICO outperforms 60.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 15.72 |
ROIC/WACC3.97
WACC10.87%
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.
With a Quick ratio value of 1.62, FICO perfoms like the industry average, outperforming 48.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
FICO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.45%, which is quite impressive.
FICO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.85% yearly.
Looking at the last year, FICO shows a quite strong growth in Revenue. The Revenue has grown by 13.48% in the last year.
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)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
The Earnings Per Share is expected to grow by 22.74% on average over the next years. This is a very strong growth
FICO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.51% yearly.
EPS Next Y26.69%
EPS Next 2Y25.27%
EPS Next 3Y25.15%
EPS Next 5Y22.74%
Revenue Next Year14.08%
Revenue Next 2Y16.15%
Revenue Next 3Y15.99%
Revenue Next 5Y14.51%
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
FICO is valuated quite expensively with a Price/Earnings ratio of 77.00.
Compared to the rest of the industry, the Price/Earnings ratio of FICO is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.36, FICO is valued quite expensively.
With a Price/Forward Earnings ratio of 60.78, 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 92.49, FICO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77 | ||
| Fwd PE | 60.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FICO is valued a bit cheaper than 65.70% of the companies in the same industry.
FICO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.28 | ||
| EV/EBITDA | 62.32 |
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.
The excellent profitability rating of FICO may justify a higher PE ratio.
A more expensive valuation may be justified as FICO's earnings are expected to grow with 25.15% in the coming years.
PEG (NY)2.88
PEG (5Y)2.98
EPS Next 2Y25.27%
EPS Next 3Y25.15%
5. Dividend
5.1 Amount
FICO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FAIR ISAAC CORP
NYSE:FICO (2/3/2025, 8:04:00 PM)
After market: 1830.77 +2.81 (+0.15%)1827.96
-45.6 (-2.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners92.02%
Inst Owner Change-3.69%
Ins Owners2.2%
Ins Owner Change1.52%
Market Cap44.51B
Analysts74.17
Price Target2227.47 (21.86%)
Short Float %2.62%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)-1.31%
Min EPS beat(2)-3%
Max EPS beat(2)0.38%
EPS beat(4)2
Avg EPS beat(4)-1.47%
Min EPS beat(4)-6.85%
Max EPS beat(4)3.61%
EPS beat(8)3
Avg EPS beat(8)-1.6%
EPS beat(12)7
Avg EPS beat(12)2.73%
EPS beat(16)11
Avg EPS beat(16)6.86%
Revenue beat(2)0
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)-0.67%
Revenue beat(4)0
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-4.18%
Max Revenue beat(4)-0.11%
Revenue beat(8)1
Avg Revenue beat(8)-0.97%
Revenue beat(12)2
Avg Revenue beat(12)-0.7%
Revenue beat(16)4
Avg Revenue beat(16)-1.04%
PT rev (1m)0.06%
PT rev (3m)12.83%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)-1.81%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)-2.69%
Revenue NY rev (3m)-1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 77 | ||
| Fwd PE | 60.78 | ||
| P/S | 25.92 | ||
| P/FCF | 73.28 | ||
| P/OCF | 70.32 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 62.32 |
EPS(TTM)23.74
EY1.3%
EPS(NY)30.08
Fwd EY1.65%
FCF(TTM)24.95
FCFY1.36%
OCF(TTM)25.99
OCFY1.42%
SpS70.53
BVpS-39.54
TBVpS-71.68
PEG (NY)2.88
PEG (5Y)2.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.85% | ||
| ROE | N/A | ||
| ROCE | 54.85% | ||
| ROIC | 43.17% | ||
| ROICexc | 48.65% | ||
| ROICexgc | 142.88% | ||
| OM | 42.71% | ||
| PM (TTM) | 29.86% | ||
| GM | 79.73% | ||
| FCFM | 35.37% |
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
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.65 | ||
| Debt/EBITDA | 2.95 | ||
| Cap/Depr | 184.79% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 6.9 | ||
| Cash Conversion | 84.68% | ||
| Profit Quality | 118.45% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 15.72 |
F-Score8
WACC10.87%
ROIC/WACC3.97
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)20.45%
EPS 3Y21.92%
EPS 5Y25.85%
EPS Q2Q%30.54%
EPS Next Y26.69%
EPS Next 2Y25.27%
EPS Next 3Y25.15%
EPS Next 5Y22.74%
Revenue 1Y (TTM)13.48%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%16.44%
Revenue Next Year14.08%
Revenue Next 2Y16.15%
Revenue Next 3Y15.99%
Revenue Next 5Y14.51%
EBIT growth 1Y14.47%
EBIT growth 3Y21.08%
EBIT growth 5Y23.68%
EBIT Next Year30.15%
EBIT Next 3Y24.35%
EBIT Next 5Y22.04%
FCF growth 1Y32.46%
FCF growth 3Y13.43%
FCF growth 5Y20.77%
OCF growth 1Y34.98%
OCF growth 3Y14.31%
OCF growth 5Y19.44%