Wide-moat Fineos’ margins are improving, as evidenced by positive free cash flow generation in the March quarter of 2024. This follows three consecutive quarters of negative free cash flow since June 2023.
Fineos has low penetration in a sleepy industry that’s ripe for disruption. Operating metrics are solid and trending positively.
As a vendor to large insurers, Fineos could lose its relevance if it does not innovate and improve. Operating margins can be constrained from high investment needs.
|
Metric
|
FCL
|
ACN
|
GWRE
|
|---|---|---|---|
Price/Earnings (Normalized) | — | 25.01 | 98.93 |
Price/Book Value | 2.30 | 7.44 | 7.26 |
Price/Sales | 2.96 | 2.95 | 9.79 |
Price/Cash Flow | — | 17.75 | 85.98 |
|
Metric
|
FCL
|
ACN
|
GWRE
|
|---|---|---|---|
Quick Ratio | 1.55 | 1.13 | 3.25 |
Current Ratio | 1.75 | 1.26 | 3.45 |
Interest Coverage | — | 168.58 | −14.93 |
|
Metric
|
FCL
|
ACN
|
GWRE
|
|---|---|---|---|
Return on Assets (Normalized) | — | 17.18% | 4.82% |
Return on Equity (Normalized) | — | 36.65% | 7.83% |
Return on Invested Capital (Normalized) | — | 28.45% | 4.51% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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