FAIR ISAAC CORP (FICO)
US3032501047 - Common Stock
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. While FICO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FICO is valued quite expensive, but it does show an excellent growth. These ratings would make FICO suitable 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.
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
The Return On Assets of FICO (29.85%) is better than 98.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 43.17%, FICO belongs to the top of the industry, outperforming 99.28% of the companies in the same industry.
FICO had an Average Return On Invested Capital over the past 3 years of 41.13%. This is significantly above the industry average of 12.22%.
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 has a better Profit Margin (29.86%) than 94.62% 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 42.71%, FICO belongs to the best of the industry, outperforming 98.21% of the companies in the same industry.
FICO's Operating Margin has improved in the last couple of years.
FICO has a Gross Margin of 79.73%. This is in the better half of the industry: FICO outperforms 78.14% of its industry peers.
FICO's Gross Margin has improved in the last couple of years.
| 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
FICO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, FICO has less shares outstanding
The number of shares outstanding for FICO has been reduced compared to 5 years ago.
FICO has a worse debt/assets ratio than last year.
2.2 Solvency
FICO has an Altman-Z score of 17.15. This indicates that FICO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 17.15, FICO belongs to the best of the industry, outperforming 91.04% 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.
The Debt to FCF ratio of FICO (3.65) is better than 60.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 17.15 |
ROIC/WACC3.65
WACC11.83%
2.3 Liquidity
A Current Ratio of 1.62 indicates that FICO should not have too much problems paying its short term obligations.
The Current ratio of FICO (1.62) 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 49.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.45% over the past year.
Measured over the past years, FICO shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.85% on average per year.
FICO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.48%.
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 23.28% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.84% on average over the next years. This is quite good.
EPS Next Y28.05%
EPS Next 2Y26.62%
EPS Next 3Y25.39%
EPS Next 5Y23.28%
Revenue Next Year17.23%
Revenue Next 2Y16.47%
Revenue Next 3Y15.72%
Revenue Next 5Y14.84%
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 88.08, the valuation of FICO can be described as expensive.
FICO's Price/Earnings ratio is in line with the industry average.
FICO is valuated expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 68.79 indicates a quite expensive valuation of FICO.
The rest of the industry has a similar Price/Forward Earnings ratio as FICO.
FICO is valuated expensively when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.08 | ||
| Fwd PE | 68.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FICO is valued a bit cheaper than 63.08% 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 | 83.82 | ||
| EV/EBITDA | 70.89 |
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 25.39% in the coming years.
PEG (NY)3.14
PEG (5Y)3.41
EPS Next 2Y26.62%
EPS Next 3Y25.39%
5. Dividend
5.1 Amount
FICO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FAIR ISAAC CORP
NYSE:FICO (12/20/2024, 8:11:18 PM)
After market: 2356.69 +265.71 (+12.71%)2090.98
+46.09 (+2.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners92.02%
Inst Owner Change-0.37%
Ins Owners2.2%
Ins Owner Change1.44%
Market Cap50.92B
Analysts74.78
Price Target2193.86 (4.92%)
Short Float %2.58%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)11.13%
PT rev (3m)26.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.08 | ||
| Fwd PE | 68.79 | ||
| P/S | 29.64 | ||
| P/FCF | 83.82 | ||
| P/OCF | 80.44 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 70.89 |
EPS(TTM)23.74
EY1.14%
EPS(NY)30.4
Fwd EY1.45%
FCF(TTM)24.95
FCFY1.19%
OCF(TTM)25.99
OCFY1.24%
SpS70.53
BVpS-39.54
TBVpS-71.68
PEG (NY)3.14
PEG (5Y)3.41
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 | 17.15 |
F-Score8
WACC11.83%
ROIC/WACC3.65
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 Y28.05%
EPS Next 2Y26.62%
EPS Next 3Y25.39%
EPS Next 5Y23.28%
Revenue 1Y (TTM)13.48%
Revenue growth 3Y9.27%
Revenue growth 5Y8.16%
Sales Q2Q%16.44%
Revenue Next Year17.23%
Revenue Next 2Y16.47%
Revenue Next 3Y15.72%
Revenue Next 5Y14.84%
EBIT growth 1Y14.47%
EBIT growth 3Y21.08%
EBIT growth 5Y23.68%
EBIT Next Year30.96%
EBIT Next 3Y19.18%
EBIT Next 5Y5.82%
FCF growth 1Y32.46%
FCF growth 3Y13.43%
FCF growth 5Y20.77%
OCF growth 1Y34.98%
OCF growth 3Y14.31%
OCF growth 5Y19.44%