Added to YB: 2025-02-03
Pitch date: 2025-01-31
FICO [neutral]
Fair Isaac Corporation
-26.18%
current return
Author Info
FluentInQuality invests in high-quality businesses that generate steady and sustainable cashflows, proven track records, and the potential to act as a true compounding machines over the long run. Sign up for the newsletter.
Company Info
Fair Isaac Corporation provides analytics software in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Market Cap
$36.3B
Pitch Price
$1.8K
Price Target
N/A
Dividend
N/A
EV/EBITDA
38.50
P/E
56.46
EV/Sales
19.03
Sector
Software
Category
growth
Fair Isaac Corporation: Can Investors Bank on FICO’s Score?
FICO (overvalued): Near-monopoly in credit scoring with 90% US lender use. Strong financials: 42.7% op margin, 79.7% gross margin, 41% ROIC. 8.2% 5yr rev CAGR, 24.5% 2yr fwd EPS CAGR. Risks: high goodwill, increasing debt. DCF shows overvaluation at current price. Excellent business, but too expensive.
Read full article (22 min)