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

0.9%

FICO

-0.7%

US Software

-0.6%

US Market


1 Year Return

36.8%

FICO

14.0%

US Software

0.6%

US Market

FICO outperformed the Software industry which returned 14% over the past year.

FICO outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

FICOIndustryMarket
7 Day0.9%-0.7%-0.6%
30 Day-11.4%-2.0%2.2%
90 Day2.5%-1.7%1.1%
1 Year36.8%36.8%15.6%14.0%2.9%0.6%
3 Year143.1%143.0%119.9%111.2%44.6%35.2%
5 Year462.2%461.1%168.7%149.0%61.9%44.2%

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 based on future cash flows and its price relative to the stock market?

48.66x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Fair Isaac's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Fair Isaac's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Fair Isaac is overvalued based on earnings compared to the US Software industry average.

Fair Isaac is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Fair Isaac is poor value based on expected growth next year.


Price Based on Value of Assets

Fair Isaac is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

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

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Fair Isaac's revenue is expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).

Fair Isaac's earnings are expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).

Fair Isaac's revenue growth is expected to exceed the United States of America market average.

Fair Isaac's earnings growth is positive but not above the United States of America market average.

Fair Isaac's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Fair Isaac will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Fair Isaac's year on year earnings growth rate has been positive over the past 5 years.

Fair Isaac's 1-year earnings growth exceeds its 5-year average (39.1% vs 13.6%)

Fair Isaac's earnings growth has exceeded the US Software industry average in the past year (39.1% vs 23%).


Return on Equity

Whilst Fair Isaac made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Fair Isaac used its assets more efficiently than the US Software industry average last year based on Return on Assets.


Return on Capital Employed

Fair Isaac has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Fair Isaac's financial position?


Financial Position Analysis

Fair Isaac's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Fair Isaac's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Fair Isaac's level of debt (306.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (110.7% vs 306.6% today).

Debt is well covered by operating cash flow (27.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).


Balance Sheet

Low level of unsold assets.

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 and Payments Analysis

Unable to evaluate Fair Isaac's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Fair Isaac's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Fair Isaac has not reported any payouts.

Unable to verify if Fair Isaac's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Fair Isaac has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Fair Isaac's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

7.4yrs

Average management tenure


CEO

Will Lansing (61yo)

7.7yrs

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

Will's remuneration is higher than average for companies of similar size in United States of America.

Will's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.4yrs

Average Tenure

54.5yo

Average Age

The average tenure for the Fair Isaac management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.3yrs

Average Tenure

59yo

Average Age

The tenure for the Fair Isaac board of directors is about average.


Insider Trading

Fair Isaac individual 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
Role
Member of the Board of Directors
Director
Shares5,230
Max PriceUS$191.84

Ownership Breakdown


Management Team

  • Will Lansing (61yo)

    President

    • Tenure: 7.7yrs
    • Compensation: US$12.25m
  • Jim Wehmann (54yo)

    Executive Vice President of Scores

    • Tenure: 7.4yrs
    • Compensation: US$3.68m
  • Rich Deal (52yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 18.7yrs
    • 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: 4.8yrs
    • Compensation: US$3.69m
  • Stuart Wells (63yo)

    • Tenure: 0.08yrs
    • Compensation: US$3.68m
  • Steve Weber

    VP of Investor Relations & Treasurer

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

    VP & Chief Accounting Officer

    • Tenure: 7.8yrs
  • Claus Moldt

    Executive VP

    • Tenure: 0.08yrs
  • Michael McLaughlin (55yo)

    Executive VP & CFO

    • Tenure: 0.08yrs

Board Members

  • Joanna Rees (57yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: US$311.39k
  • Marc McMorris (51yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$351.30k
  • Braden Kelly (48yo)

    Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: US$487.32k
  • Jim Kirsner (75yo)

    Director

    • Tenure: 12.6yrs
    • Compensation: US$352.32k
  • Will Lansing (61yo)

    President

    • Tenure: 7.7yrs
    • Compensation: US$12.25m
  • Skip Battle (75yo)

    Director

    • Tenure: 23.1yrs
    • Compensation: US$352.32k
  • David Rey (68yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: US$325.98k
  • Eva Manolis (55yo)

    Director

    • Tenure: 1.4yrs
    • 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$9.023b
  • 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 Analysis2019/09/21 23:34
End of Day Share Price2019/09/20 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.