Fair Isaac Corporation Fundamental Analysis (NYSE: FICO)
Fair Isaac Corporation Fundamental Analysis (NYSE: FICO)
Fair Isaac Corporation (NYSE: FICO) shows moderate financial fundamentals with a PE ratio of 30.07, profit margin of 34.05%, and ROE of -33.43%. The company generates $2.3B 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 52.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FICO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentFICO demonstrates superior asset utilization.
Valuation Score
ModerateFICO shows balanced valuation metrics.
Growth Score
ExcellentFICO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentFICO maintains a strong and stable balance sheet.
Profitability Score
ModerateFICO maintains healthy but balanced margins.
Key Financial Metrics
Is FICO Expensive or Cheap?
P/E Ratio
FICO trades at 30.07 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FICO's PEG of 0.88 indicates potential undervaluation.
Price to Book
The market values Fair Isaac Corporation at -5.79 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.61 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 $34.05 as profit after all expenses.
Operating Margin
Core operations generate 51.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-33.43 in profit for every $100 of shareholder equity.
ROA
Fair Isaac Corporation generates $40.00 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 $954.17M, reflecting robust business health.
Free Cash Flow
Fair Isaac Corporation generates strong free cash flow of $948.91M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $43.94 in free cash annually.
FCF Yield
FICO converts 4.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
-5.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.33
vs 25 benchmark
ROA
Return on assets percentage
0.40
vs 25 benchmark
ROCE
Return on capital employed
0.96
vs 25 benchmark
How FICO Stacks Against Its Sector Peers
| Metric | FICO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.07 | 36.60 | Better (Cheaper) |
| ROE | -33.43% | 654.00% | Weak |
| Net Margin | 34.05% | -129691.00% (disorted) | Strong |
| Debt/Equity | -1.37 | 0.27 | Strong (Low Leverage) |
| Current Ratio | 1.18 | 5.91 | Neutral |
| ROA | 40.00% | 235.00% | Weak |
FICO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
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