FAIR ISAAC CORP (FICO) Stock Fundamental Analysis
USA - NYSE:FICO - US3032501047 - Common Stock
1737.27 USD
-40.64 (-2.29%)
1732.99 USD
-4.28 (-0.25%)
We assign a fundamental rating of 5 out of 10 to FICO. FICO was compared to 281 industry peers in the Software industry. While FICO has a great profitability rating, there are quite some concerns on its financial health. FICO is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year FICO was profitable.
FICO had a positive operating cash flow in the past year.
Each year in the past 5 years FICO has 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 34.90%, FICO belongs to the best of the industry, outperforming 98.58% of the companies in the same industry.
The Return On Invested Capital of FICO (73.98%) is better than 99.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 34.9% | ||
| ROE | N/A | ||
| ROIC | 73.98% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
FICO has a better Profit Margin (32.75%) than 92.17% of its industry peers.
In the last couple of years the Profit Margin of FICO has grown nicely.
With an excellent Operating Margin value of 47.00%, FICO belongs to the best of the industry, outperforming 97.15% of the companies in the same industry.
In the last couple of years the Operating Margin of FICO has grown nicely.
The Gross Margin of FICO (82.23%) is better than 88.26% of its industry peers.
FICO's Gross Margin has improved in the last couple of years.
| 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.
There is no outstanding debt for FICO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
The Debt to FCF ratio of FICO is 4.13, which is a neutral value as it means it would take FICO, 4.13 years of fcf income to pay off all of its debts.
FICO has a Debt to FCF ratio of 4.13. This is in the better half of the industry: FICO outperforms 60.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | N/A |
ROIC/WACC6.78
WACC10.91%
2.3 Liquidity
A Current Ratio of 0.83 indicates that FICO may have some problems paying its short term obligations.
With a Current ratio value of 0.83, FICO is not doing good in the industry: 79.72% of the companies in the same industry are doing better.
FICO has a Quick 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.
The Quick ratio of FICO (0.83) is worse than 79.72% of its industry peers.
| 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.
FICO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.99% yearly.
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 24.98% 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 15.83% yearly.
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.
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
With a Price/Earnings ratio of 58.08, FICO can be considered very expensive at the moment.
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 25.91.
A Price/Forward Earnings ratio of 44.38 indicates a quite expensive valuation of FICO.
FICO's Price/Forward Earnings ratio is in line with the industry average.
FICO is valuated rather expensively when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.08 | ||
| Fwd PE | 44.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FICO is valued a bit cheaper than the industry average as 64.41% of the companies are valued more expensively.
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 | 56.39 | ||
| EV/EBITDA | 46.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 29.44% in the coming years.
PEG (NY)1.88
PEG (5Y)2.32
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 |
1737.27
-40.64 (-2.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners91.25%
Inst Owner Change-3.75%
Ins Owners2.35%
Ins Owner Change-0.46%
Market Cap41.69B
Revenue(TTM)1.99B
Net Income(TTM)651.95M
Analysts77.86
Price Target2043.76 (17.64%)
Short Float %4.09%
Short Ratio2.79
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)6.3%
PT rev (3m)4%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)-1.52%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.08 | ||
| Fwd PE | 44.38 | ||
| P/S | 20.94 | ||
| P/FCF | 56.39 | ||
| P/OCF | 53.54 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 46.93 |
EPS(TTM)29.91
EY1.72%
EPS(NY)39.15
Fwd EY2.25%
FCF(TTM)30.81
FCFY1.77%
OCF(TTM)32.45
OCFY1.87%
SpS82.95
BVpS-72.74
TBVpS-105.38
PEG (NY)1.88
PEG (5Y)2.32
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)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 | 4.13 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 263.56% | ||
| Cap/Sales | 1.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.92% | ||
| Profit Quality | 113.41% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | N/A |
F-Score7
WACC10.91%
ROIC/WACC6.78
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 5 / 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 8 / 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%.