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Fair Isaac: Reducing Our Fair Value Estimate as We Raise Our Cost of Capital Assumptions
We’ve recalibrated our cost of capital assumptions across our coverage universe.
Fair Isaac Corp FICO
Bulls Say, Bears Say
Bulls
FICO scores are an industry standard, and the firm has a long runway to increase prices given they are a small cost but are critical for lenders. Moreover, the use of mortgage performance-based fees offers another avenue for price realization.
Bears
Fair Isaac trades at a large premium to the credit bureaus and market overall, which could result in the stock seeing an outsize drop during a decline in sentiment.
News
-
Gen Z needs to build credit to start adulting - but half say they can't get it. Here's how to start.
-
Rate Joins Growing List of Lenders Leveraging FICO Score 10T to Enhance Mortgage Credit Decisioning
-
FICO Announces New Stock Repurchase Authorization, New Term Loan and Accelerated Share Repurchase Program
-
Vietnam Maritime Bank Achieves 200% Faster Loan Approvals with Intelligent Decisioning from FICO
-
FICO Score 10T Now Integrated Into Optimal Blue's Capital Markets Platform
-
FICO Invests in the Next Generation of Leaders Through First Tee
-
FICO Enhances FICO® Score Mortgage Simulator with New Automated Credit Planning Features
-
FICO Celebrates 70 Years of Innovation and Says “Hello, Future” to Applied Intelligence
Articles & Videos
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The Best Tech Stocks to Buy
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7 Undervalued Stocks That Crushed Q1 Earnings
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10 Wide-Moat Stocks Trading at Attractive Discounts to Their Fair Values
-
Tech Stocks Sank in Q1—but the Biggest Opportunities May Be Ahead
-
These Top Tech Stocks Can Stand Up to AI Risks
-
15 New 5-Star Stocks This Week
-
Weekly Market Update: Stocks Slide as Financials, Consumer Cyclicals Fall
-
AI Bear Case Continues to Weigh on Information Services Stocks
Trading Information
- Previous Close Price
- $1,186.24
- Day Range
- $1,119.61–1,194.00
- 52-Week Range
- $870.01–1,998.01
- Bid/Ask
- $1,116.21 / $1,160.00
- Shares Outstanding
- 23.19M
- Market Cap
- $26.13B
- Volume/Avg
- 328,639 / 366,548
Key Statistics
- Price/Earnings (Normalized)
- 32.63
- Price/Sales
- 12.60
- Dividend Yield (Trailing)
- 0.00%
- Dividend Yield (Forward)
- 0.00%
- Total Yield
- 6.62%
Company Profile
Founded in 1956, Fair Isaac Corporation is a leading applied analytics company. Fair Isaac is primarily known for its FICO credit scores, which is a widely used industry benchmark to determine the creditworthiness of an individual consumer. The firm’s US-centric credit scores business accounts for most of the firm’s revenue and profits and consists of business-to-business and business-to-consumer services. In addition to scores, Fair Isaac also sells software primarily to financial institutions for areas such as analytics, decision-making, customer workflows, and fraud.
- Sector
- Technology
- Industry
- Software - Application
- Stock Style Box
- Mid Growth
- Total Number of Employees
- 3,758
- Website
- https://www.fico.com
Competitors
Valuation
|
Metric
|
FICO
|
EXPN
|
EFX
|
|---|---|---|---|
Price/Earnings (Normalized) | 32.63 | 18.72 | 20.49 |
Price/Book Value | — | 5.49 | 4.30 |
Price/Sales | 12.60 | 3.75 | 3.21 |
Price/Cash Flow | 30.21 | 13.17 | 12.81 |
Price/Earnings
FICO
EXPN
EFX
Financial Strength
|
Metric
|
FICO
|
EXPN
|
EFX
|
|---|---|---|---|
Quick Ratio | 2.07 | 0.85 | 0.51 |
Current Ratio | 2.22 | 0.85 | 0.61 |
Interest Coverage | 7.20 | 9.44 | 5.39 |
Quick Ratio
FICO
EXPN
EFX
Profitability
|
Metric
|
FICO
|
EXPN
|
EFX
|
|---|---|---|---|
Return on Assets (Normalized) | 45.94% | 12.09% | 8.27% |
Return on Equity (Normalized) | — | 30.80% | 20.31% |
Return on Invested Capital (Normalized) | 69.71% | 16.63% | 11.45% |
Return on Assets
FICO
EXPN
EFX
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United States