Fair Isaac Corporation
Fair Isaac Corporation Fundamental Analysis
Fair Isaac Corporation (FICO) shows moderate financial fundamentals with a PE ratio of 48.47, profit margin of 31.89%, and ROE of -43.31%. The company generates $2.1B in annual revenue with strong year-over-year growth of 15.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FICO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentFICO demonstrates superior asset utilization.
Valuation Score
WeakFICO trades at a premium to fair value.
Growth Score
ExcellentFICO delivers strong and consistent growth momentum.
Financial Health Score
ModerateFICO shows balanced financial health with some risks.
Profitability Score
ModerateFICO maintains healthy but balanced margins.
Key Financial Metrics
Is FICO Expensive or Cheap?
P/E Ratio
FICO trades at 48.47 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FICO's PEG of 31.05 indicates potential overvaluation.
Price to Book
The market values Fair Isaac Corporation at -17.63 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 28.64 times EBITDA. This signals the market has high growth expectations.
How Well Does FICO Make Money?
Net Profit Margin
For every $100 in sales, Fair Isaac Corporation keeps $31.89 as profit after all expenses.
Operating Margin
Core operations generate 47.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-43.31 in profit for every $100 of shareholder equity.
ROA
Fair Isaac Corporation generates $35.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fair Isaac Corporation generates strong operating cash flow of $758.86M, reflecting robust business health.
Free Cash Flow
Fair Isaac Corporation generates strong free cash flow of $735.06M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $30.99 in free cash annually.
FCF Yield
FICO converts 2.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
48.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
31.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
-17.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
15.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.43
vs 25 benchmark
ROA
Return on assets percentage
0.35
vs 25 benchmark
ROCE
Return on capital employed
0.89
vs 25 benchmark
How FICO Stacks Against Its Sector Peers
| Metric | FICO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 48.47 | 35.19 | Worse (Expensive) |
| ROE | -43.31% | 1155.00% | Weak |
| Net Margin | 31.89% | -127067.00% (disorted) | Strong |
| Debt/Equity | -1.79 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 0.93 | 4.71 | Weak Liquidity |
| ROA | 35.48% | -314918.00% (disorted) | Strong |
FICO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fair Isaac Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
84.42%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
230.70%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
155.93%
Industry Style: Growth, Innovation, High Beta
High Growth