Fair Isaac Corporation Fundamental Analysis (NYSE: FICO)
Fair Isaac Corporation (NYSE: FICO) shows moderate financial fundamentals with a PE ratio of 19.92, profit margin of 32.94%, and ROE of -28.11%. The company generates $2.6B 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 56.4/100 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
ExcellentFICO trades at attractive valuation levels.
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 19.92 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FICO's PEG of 0.56 indicates potential undervaluation.
Price to Book
The market values Fair Isaac Corporation at -4.03 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.42 times EBITDA. This is generally considered low.
How Well Does FICO Make Money?
Net Profit Margin
For every $100 in sales, Fair Isaac Corporation keeps $32.94 as profit after all expenses.
Operating Margin
Core operations generate 49.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-28.11 in profit for every $100 of shareholder equity.
ROA
Fair Isaac Corporation generates $40.24 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 $1.08B, reflecting robust business health.
Free Cash Flow
Fair Isaac Corporation generates strong free cash flow of $1.07B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $49.47 in free cash annually.
FCF Yield
FICO converts 6.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
-4.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.28
vs 25 benchmark
ROA
Return on assets percentage
0.40
vs 25 benchmark
ROCE
Return on capital employed
1.10
vs 25 benchmark
How FICO Stacks Against Its Sector Peers
| Metric | FICO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.92 | 32.70 | Better (Cheaper) |
| ROE | -28.11% | 758.00% | Weak |
| Net Margin | 32.94% | -4312.00% (disorted) | Strong |
| Debt/Equity | -1.36 | 0.96 | Strong (Low Leverage) |
| Current Ratio | 0.99 | 12.15 | Weak Liquidity |
| ROA | 40.24% | 1067467.00% | 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