Fair Isaac
Market Cap
US$14.3b
Last Updated
2021/01/22 23:15 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
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
| FICO | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.7% | 3.3% | 1.4% |
| 30 Day | -3.5% | -1.9% | 4.9% |
| 90 Day | 13.9% | 7.3% | 14.6% |
| 1 Year | 21.2%21.2% | 44.4%43.5% | 25.4%22.6% |
| 3 Year | 191.7%191.7% | 130.6%123.2% | 46.8%37.0% |
| 5 Year | 419.6%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
1 week ago | Simply Wall St
Is Fair Isaac (NYSE:FICO) Using Too Much Debt?3 weeks ago | Simply Wall St
Is Now An Opportune Moment To Examine Fair Isaac Corporation (NYSE:FICO)?1 month ago | Simply Wall St
Does Fair Isaac (NYSE:FICO) Deserve A Spot On Your Watchlist?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.
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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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 9yrs | US$11.35m | 1.22% $ 173.8m | |
| Executive VP & CFO | 1.42yrs | US$5.46m | 0.010% $ 1.4m | |
| Executive VP & CTO | 1.42yrs | US$6.78m | 0.027% $ 3.9m | |
| Executive Vice President of Scores | 8.75yrs | US$3.94m | 0.28% $ 39.5m | |
| VP & Chief Accounting Officer | 9.17yrs | no data | 0.026% $ 3.8m | |
| VP of Investor Relations & Treasurer | no data | no data | no data | |
| Executive VP | 13.58yrs | US$2.43m | 0.38% $ 55.0m | |
| Executive Vice President of Sales & Marketing | 0.25yr | no data | 0.0054% $ 769.2k | |
| Executive VP & Chief Human Resources Officer | 20yrs | US$998.48k | 0.18% $ 26.0m | |
| Senior VP of Scores & Analytics and Head of FICO Labs | 13.25yrs | no data | no data | |
| Managing Director of China Operations | 9yrs | no data | no data | |
| Head of French Operations | 8.5yrs | no data | no data |
9.0yrs
Average Tenure
55yo
Average Age
Experienced Management: FICO's management team is seasoned and experienced (9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 9yrs | US$11.35m | 1.22% $ 173.8m | |
| Independent Director | 5.92yrs | US$326.48k | 0.031% $ 4.4m | |
| Independent Director | 5.25yrs | US$288.98k | 0% $ 0 | |
| Independent Chairman of the Board | 4.92yrs | US$445.76k | 0.029% $ 4.1m | |
| Independent Director | 13.92yrs | US$368.26k | 0.086% $ 12.2m | |
| Independent Director | 24.42yrs | US$412.61k | 0.18% $ 25.8m | |
| Independent Director | 0.83yr | no data | no data | |
| Independent Director | 2.75yrs | no data | 0% $ 0 | |
| Independent Director | 9.25yrs | US$309.67k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FICO | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jul 1987 |
| FRI | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 1987 |
| 0TIQ | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jul 1987 |
| FICO1 * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jul 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/22 23:15 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/09/30 |
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.