Fair Isaac Corporation Fundamental Analysis
Fair Isaac Corporation (FICO) shows weak financial fundamentals with a PE ratio of 37.95, profit margin of 33.67%, and ROE of -43.08%. The company generates $2.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.9/100 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
ModerateFICO shows balanced valuation metrics.
Growth Score
ModerateFICO shows steady but slowing expansion.
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 37.95 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FICO's PEG of 1.09 indicates fair valuation.
Price to Book
The market values Fair Isaac Corporation at -13.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 21.38 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 $33.67 as profit after all expenses.
Operating Margin
Core operations generate 50.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-43.08 in profit for every $100 of shareholder equity.
ROA
Fair Isaac Corporation generates $37.09 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 $890.55M, reflecting robust business health.
Free Cash Flow
Fair Isaac Corporation generates strong free cash flow of $876.17M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $37.78 in free cash annually.
FCF Yield
FICO converts 3.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
-13.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
12.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.43
vs 25 benchmark
ROA
Return on assets percentage
0.37
vs 25 benchmark
ROCE
Return on capital employed
0.69
vs 25 benchmark
How FICO Stacks Against Its Sector Peers
| Metric | FICO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.95 | 37.03 | Neutral |
| ROE | -43.08% | 970.00% | Weak |
| Net Margin | 33.67% | 5896794779.00% | Weak |
| Debt/Equity | -1.74 | 0.37 | Strong (Low Leverage) |
| Current Ratio | 2.22 | 4.94 | Strong Liquidity |
| ROA | 37.09% | -296015.00% (disorted) | Strong |
FICO outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, 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
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta