NYSE:FICO

Stock Analysis Report

Executive Summary

Fair Isaac Corporation develops analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.1%

FICO

8.6%

US Software

9.4%

US Market


1 Year Return

7.9%

FICO

13.2%

US Software

-6.8%

US Market

Return vs Industry: FICO underperformed the US Software industry which returned 12.1% over the past year.

Return vs Market: FICO exceeded the US Market which returned -8.1% over the past year.


Shareholder returns

FICOIndustryMarket
7 Day14.1%8.6%9.4%
30 Day-4.3%1.9%-3.9%
90 Day-25.5%-4.7%-16.5%
1 Year7.9%7.9%14.4%13.2%-4.8%-6.8%
3 Year138.9%138.9%116.0%106.8%23.4%15.2%
5 Year227.0%226.5%180.5%160.6%41.3%25.7%

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?

42.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FICO ($300.69) is trading above our estimate of fair value ($261.7)

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


Price To Earnings Ratio

PE vs Industry: FICO is good value based on its PE Ratio (42.1x) compared to the Software industry average (43x).

PE vs Market: FICO is poor value based on its PE Ratio (42.1x) compared to the US market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: FICO is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: FICO is overvalued based on its PB Ratio (36.4x) compared to the US Software industry average (4.5x).


Next Steps

Future Growth

How is Fair Isaac forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FICO's forecast earnings growth (12.2% per year) is above the savings rate (1.7%).

Earnings vs Market: FICO's earnings (12.2% per year) are forecast to grow slower than the US market (13.3% per year).

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

Revenue vs Market: FICO's revenue (4.7% per year) is forecast to grow slower than the US market (6.9% per year).

High Growth Revenue: FICO's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FICO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Fair Isaac performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FICO has high quality earnings.

Growing Profit Margin: FICO's current net profit margins (17.3%) are higher than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: FICO's earnings have grown by 15.8% per year over the past 5 years.

Accelerating Growth: FICO's earnings growth over the past year (55%) exceeds its 5-year average (15.8% per year).

Earnings vs Industry: FICO earnings growth over the past year (55%) exceeded the Software industry 18.4%.


Return on Equity

High ROE: Whilst FICO's Return on Equity (85.92%) 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 ($461.0M) exceed its short term liabilities ($442.0M).

Long Term Liabilities: FICO's short term assets ($461.0M) do not cover its long term liabilities ($862.0M).


Debt to Equity History and Analysis

Debt Level: FICO's debt to equity ratio (381.1%) is considered high.

Reducing Debt: FICO's debt to equity ratio has increased from 150.8% to 381.1% over the past 5 years.

Debt Coverage: FICO's debt is well covered by operating cash flow (29.6%).

Interest Coverage: FICO's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Fair Isaac's 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 payouts.

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

8.3yrs

Average management tenure


CEO

Will Lansing (61yo)

8.25s

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 also serves as its President. Mr. Lansing serves as an Advisor at ...


CEO Compensation Analysis

Compensation vs Market: Will's total compensation ($USD11.35M) is above average for companies of similar size in the US market ($USD7.40M).

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


Leadership Team

NamePositionTenureCompensationOwnership
William Lansing
President8.25yrsUS$11.35m1.08% $94.4m
Michael McLaughlin
Executive VP & CFO0.67yrUS$5.46mno data
Claus Moldt
Executive VP & Chief Technology Officer0.67yrUS$6.78m0.018% $1.5m
Wayne Huyard
Executive Vice President of Sales5.42yrsUS$3.95m0.11% $10.1m
James Wehmann
Executive Vice President of Scores8yrsUS$3.94m0.32% $28.0m
Michael Leonard
VP & Chief Accounting Officer8.42yrsno data0.025% $2.2m
Steven Weber
VP of Investor Relations & Treasurerno datano datano data
Mark Scadina
Executive VP12.83yrsUS$2.43m0.37% $32.4m
Richard Deal
Executive VP & Chief Human Resources Officer19.25yrsUS$998.48k0.20% $17.7m
Andrew Jennings
Senior VP of Scores & Analytics and Head of FICO Labs12.5yrsno datano data

8.3yrs

Average Tenure

54yo

Average Age

Experienced Management: FICO's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Lansing
President8.25yrsUS$11.35m1.08% $94.4m
Joanna Rees
Independent Director5.17yrsUS$326.48k0.030% $2.7m
Marc McMorris
Independent Director4.5yrsUS$288.98k0.0017% $152.7k
Braden Kelly
Chairman of the Board4.17yrsUS$445.76k0.029% $2.5m
James Kirsner
Independent Director13.17yrsUS$368.26k0.086% $7.5m
A. Battle
Independent Director23.67yrsUS$412.61k0.18% $15.8m
Fabiola Arredondo
Independent Director0.083yrno datano data
Eva Manolis
Independent Director2yrsno datano data
David Rey
Independent Director8.5yrsUS$309.67kno data

5.2yrs

Average Tenure

57yo

Average Age

Experienced Board: FICO's board of directors are considered experienced (5.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FICO insiders have sold more shares than they have bought 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$8.777b
  • Shares outstanding: 29.15m
  • 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
FRIBRSE (Berne Stock Exchange)YesCommon StockCHCHFJul 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. The company offers analytical solutions, credit scoring, and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, healthcare organizations, and public agencies. It operates through three segments: Applications, Scores, and Decision Management Software. The Applications segment offers pre-configured decision management applications designed for various business problems or processes, such as marketing, account origination, customer management, fraud, collection, and insurance claims management, as well as associated professional services. The Scores segment provides business-to-business scoring solutions and services, including myFICO solutions for consumers that give clients access to analytics to be integrated into their transaction streams and decision-making processes, as well as associated professional services. The Decision Management Software segment offers analytic and decision management software tools, as well as associated professional services. The company offers a portfolio of applications, tools, and services in the cloud to clients through its FICO Analytic Cloud, FICO Decision Management Suite, and FICO Decision Management Platform. Fair Isaac Corporation markets its products and services primarily through its direct sales organization; indirect channels; subsidiary sales organizations; and resellers and independent distributors, as well as online. It operates in the United States, the United Kingdom, and internationally. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in San Jose, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 04:54
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.