NYSE:FICO

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Executive Summary

Fair Isaac Corporation develops analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. More Details


Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Fair Isaac's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FICO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FICO's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.7%

FICO

3.3%

US Software

1.4%

US Market


1 Year Return

21.2%

FICO

43.5%

US Software

22.6%

US Market

Return vs Industry: FICO underperformed the US Software industry which returned 44.5% over the past year.

Return vs Market: FICO underperformed the US Market which returned 22.8% over the past year.


Shareholder returns

FICOIndustryMarket
7 Day2.7%3.3%1.4%
30 Day-3.5%-1.9%4.9%
90 Day13.9%7.3%14.6%
1 Year21.2%21.2%44.4%43.5%25.4%22.6%
3 Year191.7%191.7%130.6%123.2%46.8%37.0%
5 Year419.6%419.2%282.4%261.8%132.0%106.1%

Long-Term Price Volatility Vs. Market

How volatile is Fair Isaac's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fair Isaac undervalued compared to its fair value and its price relative to the market?

61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FICO ($491.32) is trading above our estimate of fair value ($153.82)

Significantly Below Fair Value: FICO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FICO is poor value based on its PE Ratio (60.4x) compared to the US Software industry average (56.6x).

PE vs Market: FICO is poor value based on its PE Ratio (60.4x) compared to the US market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: FICO is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: FICO is overvalued based on its PB Ratio (43.2x) compared to the US Software industry average (9.7x).


Next Steps

Future Growth

How is Fair Isaac forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FICO's forecast earnings growth (15.3% per year) is above the savings rate (2%).

Earnings vs Market: FICO's earnings (15.3% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: FICO's earnings are forecast to grow, but not significantly.

Revenue vs Market: FICO's revenue (6.5% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: FICO's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FICO's Return on Equity is forecast to be very high in 3 years time (47.6%).


Next Steps

Past Performance

How has Fair Isaac performed over the past 5 years?

18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FICO has high quality earnings.

Growing Profit Margin: FICO's current net profit margins (18.3%) are higher than last year (16.6%).


Past Earnings Growth Analysis

Earnings Trend: FICO's earnings have grown by 18.9% per year over the past 5 years.

Accelerating Growth: FICO's earnings growth over the past year (22.9%) exceeds its 5-year average (18.9% per year).

Earnings vs Industry: FICO earnings growth over the past year (22.9%) exceeded the Software industry 14.3%.


Return on Equity

High ROE: Whilst FICO's Return on Equity (71.41%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Fair Isaac's financial position?


Financial Position Analysis

Short Term Liabilities: FICO's short term assets ($534.1M) exceed its short term liabilities ($414.5M).

Long Term Liabilities: FICO's short term assets ($534.1M) do not cover its long term liabilities ($860.6M).


Debt to Equity History and Analysis

Debt Level: FICO's debt to equity ratio (252%) is considered high.

Reducing Debt: FICO's debt to equity ratio has increased from 139.3% to 252% over the past 5 years.

Debt Coverage: FICO's debt is well covered by operating cash flow (43.7%).

Interest Coverage: FICO's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Fair Isaac current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FICO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FICO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FICO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FICO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FICO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FICO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.0yrs

Average management tenure


CEO

Will Lansing (62 yo)

9yrs

Tenure

US$11,345,257

Compensation

Mr. William J. Lansing, also known as Will, J.D., has been the Chief Executive Officer of Fair Isaac Corporation since January 27, 2012 and serves as its President. Mr. Lansing serves as an Advisor at i-Ha...


CEO Compensation Analysis

Compensation vs Market: Will's total compensation ($USD11.35M) is about average for companies of similar size in the US market ($USD10.55M).

Compensation vs Earnings: Will's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Lansing
President9yrsUS$11.35m1.22%
$ 173.8m
Michael McLaughlin
Executive VP & CFO1.42yrsUS$5.46m0.010%
$ 1.4m
Claus Moldt
Executive VP & CTO1.42yrsUS$6.78m0.027%
$ 3.9m
James Wehmann
Executive Vice President of Scores8.75yrsUS$3.94m0.28%
$ 39.5m
Michael Leonard
VP & Chief Accounting Officer9.17yrsno data0.026%
$ 3.8m
Steven Weber
VP of Investor Relations & Treasurerno datano datano data
Mark Scadina
Executive VP13.58yrsUS$2.43m0.38%
$ 55.0m
Stephanie Covert
Executive Vice President of Sales & Marketing0.25yrno data0.0054%
$ 769.2k
Richard Deal
Executive VP & Chief Human Resources Officer20yrsUS$998.48k0.18%
$ 26.0m
Andrew Jennings
Senior VP of Scores & Analytics and Head of FICO Labs13.25yrsno datano data
John Chen
Managing Director of China Operations9yrsno datano data
Jean-Michel Schneider
Head of French Operations8.5yrsno datano data

9.0yrs

Average Tenure

55yo

Average Age

Experienced Management: FICO's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Lansing
President9yrsUS$11.35m1.22%
$ 173.8m
Joanna Rees- Gallanter
Independent Director5.92yrsUS$326.48k0.031%
$ 4.4m
Marc McMorris
Independent Director5.25yrsUS$288.98k0%
$ 0
Braden Kelly
Independent Chairman of the Board4.92yrsUS$445.76k0.029%
$ 4.1m
James Kirsner
Independent Director13.92yrsUS$368.26k0.086%
$ 12.2m
A. Battle
Independent Director24.42yrsUS$412.61k0.18%
$ 25.8m
Fabiola Arredondo
Independent Director0.83yrno datano data
Eva Manolis
Independent Director2.75yrsno data0%
$ 0
David Rey
Independent Director9.25yrsUS$309.67kno data

5.9yrs

Average Tenure

58yo

Average Age

Experienced Board: FICO's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FICO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fair Isaac Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fair Isaac Corporation
  • Ticker: FICO
  • Exchange: NYSE
  • Founded: 1956
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$14.297b
  • Shares outstanding: 29.10m
  • Website: https://www.fico.com

Number of Employees


Location

  • Fair Isaac Corporation
  • 181 Metro Drive
  • Suite 700
  • San Jose
  • California
  • 95110
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FICONYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1987
FRIDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1987
0TIQLSE (London Stock Exchange)YesCommon StockGBUSDJul 1987
FICO1 *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1987

Biography

Fair Isaac Corporation develops analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions in North America, Latin America, Europe, the...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 23:15
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.