FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FICO - US3032501047 - Common Stock
1798.53 USD
+26.66 (+1.5%)
1798.53 USD
0 (0%)
FICO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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.
FICO had a positive operating cash flow in the past year.
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
The Return On Assets of FICO (34.90%) is better than 98.57% of its industry peers.
FICO has a better Return On Invested Capital (73.98%) than 100.00% 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 10.97%.
The 3 year average ROIC (53.64%) for FICO is below the current ROIC(73.98%), indicating increased profibility in the last year.
| 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.
Looking at the Operating Margin, with a value of 47.00%, FICO belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
In the last couple of years the Operating Margin of FICO has grown nicely.
Looking at the Gross Margin, with a value of 82.23%, FICO belongs to the top of the industry, outperforming 87.86% of the companies in the same industry.
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.
Compared to 1 year ago, FICO has less shares outstanding
Compared to 5 years ago, FICO has less shares outstanding
Compared to 1 year ago, FICO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 13.12 indicates that FICO is not in any danger for bankruptcy at the moment.
FICO's Altman-Z score of 13.12 is amongst the best of the industry. FICO outperforms 90.36% of its industry peers.
FICO has a debt to FCF ratio of 4.14. This is a neutral value as FICO would need 4.14 years to pay back of all of its debts.
FICO has a better Debt to FCF ratio (4.14) than 61.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 13.12 |
ROIC/WACC6.86
WACC10.78%
2.3 Liquidity
FICO has a Current Ratio of 0.83. This is a bad value and indicates that FICO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.83, FICO is not doing good in the industry: 82.50% of the companies in the same industry are doing better.
A Quick Ratio of 0.83 indicates that FICO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.83, FICO is doing worse than 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.99% over the past year.
The Earnings Per Share has been growing by 25.08% 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 15.91% in the last year.
Measured over the past years, FICO shows a quite strong growth in Revenue. The Revenue has been growing by 8.99% on average per year.
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
The Earnings Per Share is expected to grow by 22.50% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.69% on average over the next years. This is quite good.
EPS Next Y38.72%
EPS Next 2Y33.23%
EPS Next 3Y28.66%
EPS Next 5Y22.5%
Revenue Next Year22.49%
Revenue Next 2Y19.99%
Revenue Next 3Y17.66%
Revenue Next 5Y14.69%
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
With a Price/Earnings ratio of 60.13, FICO can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as FICO.
The average S&P500 Price/Earnings ratio is at 26.49. FICO is valued rather expensively when compared to this.
FICO is valuated quite expensively with a Price/Forward Earnings ratio of 43.35.
The rest of the industry has a similar Price/Forward Earnings ratio as FICO.
FICO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.13 | ||
| Fwd PE | 43.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FICO is valued a bit cheaper than 62.86% 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 | 57.67 | ||
| EV/EBITDA | 47.93 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 28.66% in the coming years.
PEG (NY)1.55
PEG (5Y)2.4
EPS Next 2Y33.23%
EPS Next 3Y28.66%
5. Dividend
5.1 Amount
FICO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1798.53
+26.66 (+1.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.13%
Inst Owner Change2.33%
Ins Owners2.4%
Ins Owner Change0.59%
Market Cap42.64B
Revenue(TTM)1.99B
Net Income(TTM)651.95M
Analysts77.86
Price Target2061.14 (14.6%)
Short Float %4.64%
Short Ratio3.68
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)0.85%
PT rev (3m)7.96%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-0.23%
EPS NY rev (1m)5.99%
EPS NY rev (3m)14.36%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)3.28%
Revenue NY rev (3m)7.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.13 | ||
| Fwd PE | 43.35 | ||
| P/S | 21.42 | ||
| P/FCF | 57.67 | ||
| P/OCF | 54.75 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 47.93 |
EPS(TTM)29.91
EY1.66%
EPS(NY)41.49
Fwd EY2.31%
FCF(TTM)31.19
FCFY1.73%
OCF(TTM)32.85
OCFY1.83%
SpS83.97
BVpS-73.63
TBVpS-106.67
PEG (NY)1.55
PEG (5Y)2.4
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 | 13.12 |
F-Score7
WACC10.78%
ROIC/WACC6.86
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 Y38.72%
EPS Next 2Y33.23%
EPS Next 3Y28.66%
EPS Next 5Y22.5%
Revenue 1Y (TTM)15.91%
Revenue growth 3Y13.07%
Revenue growth 5Y8.99%
Sales Q2Q%13.65%
Revenue Next Year22.49%
Revenue Next 2Y19.99%
Revenue Next 3Y17.66%
Revenue Next 5Y14.69%
EBIT growth 1Y27.55%
EBIT growth 3Y19.94%
EBIT growth 5Y22.37%
EBIT Next Year32.76%
EBIT Next 3Y24.44%
EBIT Next 5Y19.58%
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 38.72% 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%.