Fair Isaac Corporation (FICO) is a company famous for its FICO Score, which banks and financial institutions use to check a person’s creditworthiness. Let’s break down its financials in a way that’s easy to understand.
Market Value & Stock Performance – How Big is the Fair Isaac Corporation ?
- Market Cap: $41.29 billion → This is the total value of the company in the stock market. It tells us how big the company is.
- Enterprise Value (EV): $43.72 billion → This includes the company’s debt and cash, giving a clearer picture of its real worth. Since EV is more than market cap, it means FICO has some debt.
- Shares Outstanding: 24.42 million → The number of shares available in the market.
- Share Reduction: -1.30% in the last year → The company bought back some of its shares. This is usually good for investors because it increases the value of remaining shares.
Stock Growth:- The stock price has gone up by 32.06% in the last year, which means it has given good returns to investors.
Is the Fair Isaac Corporation Stock Expensive?
To know whether a stock is cheap or expensive, we look at its PE Ratio (Price-to-Earnings Ratio).
- Current PE Ratio: 78.49 → This means the Fair Isaac Corporation stock is trading at 78 times its past year’s earnings. A high PE usually means the stock is expensive.
- Forward PE Ratio: 56.00 → This means the stock is expected to get cheaper based on future earnings, but it’s still high.
- PEG Ratio: 1.74 → If this number is above 1, the stock might be overvalued. Since FICO’s PEG is 1.74, it is not very cheap.
⏩ Conclusion: The stock is expensive right now, but investors are willing to pay because they expect good growth in the future.
Is the Company Making Good Money ?
A good company should make a lot of profit from its business. Let’s see how Fair Isaac is doing:-
- Revenue (Total Income): $1.78 billion → This is the total money the company made in the last 12 months.
- Net Profit: $544.27 million → This is the actual profit left after all expenses.
- Earnings Per Share (EPS): $21.79 → If you owned 1 share, this is how much profit is assigned to you.
To check how profitable a company is, we look at its margins:-
- Gross Margin: 80.17% → For every $100 the company earns, $80.17 is left after production costs. This is very high!
- Operating Margin: 42.91% → After paying for salaries, rent, and other business costs, the company keeps 42.91% of revenue.
- Profit Margin: 30.66% → After all expenses, 30.66% of the revenue turns into profit.
⏩ Conclusion: Fair Isaac Corporation is a highly profitable company with strong margins, which is a great sign for investors.
Returns – How Efficient is the Company ?
Investors love companies that generate high returns on their money. Here’s how Fair Isaac performs:
- Return on Assets (ROA): 28.85% → For every $100 in assets, the Fair Isaac Corporation makes $28.85 in profit.
- Return on Invested Capital (ROIC): 37.09% → For every $100 invested, the company makes $37.09 in returns.
- Return on Capital Employed (ROCE): 55.39% → This shows how well the company uses its capital.
⏩ Conclusion: Fair Isaac is highly efficient, making good use of its money and assets to generate profits.
Financial Strength – Is There Any Risk ?
A company should have more cash than debt to be financially strong. Let’s check Fair Isaac’s position:
- Cash: $184.25 million → This is the total cash the Fair Isaac Corporation has.
- Debt: $2.44 billion → This is the total money the company owes.
- Net Cash Position: -$2.26 billion → Since debt is much higher than cash, the company has a negative cash position, meaning it owes more than it has.
⏩ Conclusion: Fair Isaac is profitable but carries a lot of debt, which is a risk. However, since it generates strong profits, it can manage this debt.
Stock Volatility & Investor Sentiment – How Risky is It ?
- Beta: 1.39 → A beta above 1 means the Fair Isaac Corporation stock is more volatile than the market. Fair Isaac’s stock moves up and down more than the average stock.
- Short Interest: 2.73% → This means some investors are betting against the stock, but the percentage is not too high.
⏩ Conclusion: This stock can be risky because of its high volatility, but overall, investor sentiment is positive.
Analyst Ratings & Future Expectations :-
- Average Price Target: $2,089.69 → Analysts believe the stock can go 23.59% higher from its current price.
- Consensus Rating: “Buy” → Most analysts recommend buying this stock.
⏩ Conclusion: Experts believe Fair Isaac Corporation’s stock price will continue to increase, making it an attractive investment.
Should You Buy Fair Isaac Corporation Stock ?
✅ Reasons to Buy:–
- Highly Profitable: Strong margins and earnings.
- High Returns on Capital: Efficient use of money and assets.
- Growing Stock Price: Increased by 32% in the last year.
- Positive Analyst Ratings: Expected 23.59% upside.
- Industry Leader: Dominates the credit scoring industry.
❌ Reasons to Avoid:–
- Expensive Valuation: High PE ratio (78.49).
- High Debt: More debt than cash (-$2.26 billion).
- Stock is Volatile: Beta of 1.39 means price fluctuations.
- Short Interest Exists: 2.73% of shares are shorted.
Buy or Wait ?
- If you want a profitable and fast-growing company, Fair Isaac is a good investment.
- If you are looking for a cheap stock or a low-risk investment, you might want to wait for a better price.
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