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

Fundamentals

Solid track record with limited growth.


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


Market Performance


7 Day Return

-2.4%

FICO

-3.1%

US Software

0.5%

US Market


1 Year Return

45.3%

FICO

19.9%

US Software

6.8%

US Market

Return vs Industry: FICO exceeded the US Software industry which returned 19.9% over the past year.

Return vs Market: FICO exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

FICOIndustryMarket
7 Day-2.4%-3.1%0.5%
30 Day-3.3%-3.1%-0.8%
90 Day-11.9%-6.6%-0.9%
1 Year45.3%45.3%21.6%19.9%9.2%6.8%
3 Year144.5%144.4%111.9%103.5%45.6%36.2%
5 Year431.4%430.3%163.3%144.3%63.2%45.4%

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?

47.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FICO ($301.86) is trading above our estimate of fair value ($101.42)

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 (47x) compared to the Software industry average (46.8x).

PE vs Market: FICO is poor value based on its PE Ratio (47x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: FICO is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: FICO is overvalued based on its PB Ratio (32.5x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

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

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FICO's forecast earnings growth (10.4% per year) is above the savings rate (2.7%).

Earnings vs Market: FICO's earnings (10.4% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: FICO's revenue (8.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: FICO's revenue (8.8% 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?

13.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FICO's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: FICO's earnings growth over the past year (39.1%) exceeds its 5-year average (13.6% per year).

Earnings vs Industry: FICO earnings growth over the past year (39.1%) exceeded the Software industry 19.1%.


Return on Equity

High ROE: Whilst FICO's Return on Equity (69.39%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: FICO has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: FICO has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Fair Isaac's financial position?


Financial Position Analysis

Short Term Liabilities: FICO's short term assets ($435.1M) do not cover its short term liabilities ($457.7M)

Long Term Liabilities: FICO's short term assets (435.1M) do not cover its long term liabilities (647.8M)


Debt to Equity History and Analysis

Debt Level: FICO's debt to equity ratio (306.6%) is considered high

Reducing Debt: FICO's debt to equity ratio has increased from 110.7% to 306.6% over the past 5 years.

Debt Coverage: FICO's debt is well covered by operating cash flow (27.3%).

Interest Coverage: FICO's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet

Inventory Level: FICO has a low level of unsold assets or inventory.

Debt Coverage by Assets: FICO's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Fair Isaac's salary, the management and board of directors tenure and is there insider trading?

7.5yrs

Average management tenure


CEO

Will Lansing (61yo)

7.8yrs

Tenure

US$12,247,481

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 ($USD12.25M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

7.5yrs

Average Tenure

54.5yo

Average Age

Experienced Management: FICO's management team is seasoned and experienced (7.5 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

57yo

Average Age

Experienced Board: FICO's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$4,299,65606 Sep 19
Mark Scadina
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares12,000
Max PriceUS$363.26
SellUS$3,475,37829 Aug 19
Wayne Huyard
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales
Shares10,000
Max PriceUS$347.75
SellUS$6,334,12627 Aug 19
Richard Deal
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Human Resources Officer
Shares18,057
Max PriceUS$354.19
SellUS$360,88120 Aug 19
Michael Leonard
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares1,038
Max PriceUS$347.67
SellUS$94312 Mar 19
Michael Pung
EntityIndividual
Shares3.7
Max PriceUS$255.00
SellUS$1,185,10314 Feb 19
Mark Scadina
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares4,941.75
Max PriceUS$239.85
SellUS$1,179,56312 Feb 19
Wayne Huyard
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales
Shares5,000
Max PriceUS$237.00
SellUS$1,147,38806 Feb 19
Wayne Huyard
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales
Shares5,000
Max PriceUS$229.48
BuyUS$996,68815 Nov 18
A. Battle
EntityIndividual
Shares5,230
Max PriceUS$191.84

Ownership Breakdown


Management Team

  • Will Lansing (61yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$12.25m
  • Jim Wehmann (54yo)

    Executive Vice President of Scores

    • Tenure: 7.5yrs
    • Compensation: US$3.68m
  • Rich Deal (52yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 18.8yrs
    • Compensation: US$998.48k
  • Mark Scadina (50yo)

    Executive VP

    • Tenure: 12.3yrs
    • Compensation: US$2.43m
  • Wayne Huyard (60yo)

    Executive Vice President of Sales

    • Tenure: 4.9yrs
    • Compensation: US$3.69m
  • Stuart Wells (63yo)

    • Tenure: 0.2yrs
    • Compensation: US$3.68m
  • Steve Weber

    VP of Investor Relations & Treasurer

    • Tenure: 0yrs
  • Michael Leonard (54yo)

    VP & Chief Accounting Officer

    • Tenure: 7.9yrs
  • Claus Moldt

    Executive VP

    • Tenure: 0.2yrs
  • Michael McLaughlin (55yo)

    Executive VP & CFO

    • Tenure: 0.2yrs

Board Members

  • Joanna Rees (57yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$311.39k
  • Marc McMorris (51yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$351.30k
  • Braden Kelly (48yo)

    Chairman of the Board

    • Tenure: 3.7yrs
    • Compensation: US$487.32k
  • Jim Kirsner (75yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$352.32k
  • Will Lansing (61yo)

    President

    • Tenure: 7.8yrs
    • Compensation: US$12.25m
  • David Rey (68yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$325.98k
  • Eva Manolis (55yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$467.18k

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$8.723b
  • Shares outstanding: 28.90m
  • 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

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, cr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:34
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.