FICO Fair Isaac Corporation - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
While FICO’s valuation appears stretched, it is less extreme versus the sector’s sky-high average P/E of 126, and its growth and margin superiority justify a premium to peers like FI and NXPI
- Forward P/E of 46.85 is more reasonable than current 65.8, suggesting earnings growth will de-risk valuation
- Trading below analyst target of $2016, offering 15.7% upside
- Current P/E of 65.8 is well above sector average of 126.42 but not extreme given quality
- Price/Sales of 20.7 and negative P/B raise concerns about balance sheet transparency and multiple sustainability
Despite a recent sequential dip in EPS, FICO’s long-term growth trajectory remains robust, supported by strong YoY trends and improving price action over the last month (+6.4%) after a deep 1Y drawdown
- 13.6% YoY revenue growth and 17.9% earnings growth indicate strong forward momentum
- Analyst target price implies confidence in sustained execution and market expansion
- Q/Q EPS decline of -9.7% raises near-term execution concerns
- Lack of free cash flow and operating cash flow data limits visibility into reinvestment capacity
FICO has delivered exceptional historical profitability and earnings quality over five years, evidenced by 268% 5Y return and consistent margin expansion, though recent quarters show increased volatility and share price weakness
- Long history of beating earnings estimates, particularly during 2020–2022 with double-digit surprises
- Profit margins and ROA have remained consistently high, demonstrating pricing power and operational discipline
- Two misses in the last four quarters, including a -4.8% miss in Feb 2025, suggest some volatility in delivery
- 1Y return of -25% underperforms both sector and broader market
FICO’s liquidity ratios are below industry norms and raise caution, though the software model may allow for lower working capital needs; peer comparisons are difficult due to missing capital structure data
- No debt or cash data reported, but negative P/B may reflect large intangibles rather than distress
- High ROA of 32.62% suggests efficient asset utilization despite liquidity constraints
- Current ratio of 0.83 and quick ratio of 0.78 indicate potential short-term liquidity pressure
- Absence of debt/equity and cash/debt figures limits full solvency assessment
FICO does not pay a dividend, which is common for high-growth software firms prioritizing reinvestment, but reduces total return potential in flat markets
- No dividend paid, limiting appeal to income-oriented investors
- Payout ratio of 0% indicates no current return of capital via dividends
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for FICO and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
FICO
Fair Isaac Corporation
Primary
|
+268.0% | +182.5% | -25.0% | -20.9% | +6.4% | +0.1% |
|
DDOG
Datadog, Inc.
Peer
|
+20.1% | +62.9% | -13.0% | -17.9% | -12.9% | -5.2% |
|
MCHP
Microchip Technology Incorporated
Peer
|
+7.8% | +7.9% | +37.1% | +1.5% | +16.7% | -0.7% |
|
PAYX
Paychex, Inc.
Peer
|
+38.6% | +0.9% | -20.7% | -26.9% | -11.2% | +0.1% |
|
ASX
ASE Technology Holding Co., Ltd.
Peer
|
+238.7% | +199.9% | +83.8% | +84.7% | +24.7% | -0.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Technology Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
FICO
Fair Isaac Corporation
|
BULLISH | $41.29B | 65.79 | -% | 32.7% | $1741.37 | |
|
DDOG
Datadog, Inc.
|
NEUTRAL | $41.74B | 383.94 | 3.5% | 3.3% | $119.02 | |
|
MCHP
Microchip Technology Incorporated
|
NEUTRAL | $40.37B | - | -2.9% | -4.4% | $74.7 | |
|
PAYX
Paychex, Inc.
|
NEUTRAL | $40.34B | 25.13 | 41.3% | 27.9% | $112.1 | |
|
ASX
ASE Technology Holding Co., Ltd.
|
NEUTRAL | $42.3B | 38.78 | 10.9% | 5.6% | $19.39 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-11-10 | LANSING WILLIAM J | Chief Executive Officer | Gift | 13,333 | - |
| 2025-11-10 | LANSING WILLIAM J | Chief Executive Officer | Sale | 2,400 | $4,158,921 |
| 2025-10-14 | LANSING WILLIAM J | Chief Executive Officer | Sale | 4,942 | $8,062,065 |
| 2025-10-14 | LANSING WILLIAM J | Chief Executive Officer | Sale | 1,069 | $1,764,031 |
| 2025-10-14 | LANSING WILLIAM J | Chief Executive Officer | Option Exercise | 6,011 | $1,112,336 |
| 2025-09-09 | LANSING WILLIAM J | Chief Executive Officer | Sale | 6,011 | $9,241,910 |
| 2025-09-09 | LANSING WILLIAM J | Chief Executive Officer | Option Exercise | 6,011 | $1,112,336 |
| 2025-08-28 | LANSING WILLIAM J | Chief Executive Officer | Sale | 6,010 | $9,026,047 |
| 2025-08-28 | LANSING WILLIAM J | Chief Executive Officer | Option Exercise | 6,010 | $1,112,150 |
| 2025-08-22 | STANSBURY HENRY TAYLOE | Director | Stock Award | 91 | - |
| 2025-07-08 | LANSING WILLIAM J | Chief Executive Officer | Sale | 3,811 | $5,967,995 |
| 2025-07-08 | LANSING WILLIAM J | Chief Executive Officer | Sale | 2,200 | $3,917,060 |
| 2025-07-08 | LANSING WILLIAM J | Chief Executive Officer | Option Exercise | 6,011 | $1,112,336 |
| 2025-07-03 | BEHL NIKHIL | Officer | Stock Award | 242 | - |
| 2025-06-10 | LANSING WILLIAM J | Chief Executive Officer | Sale | 6,010 | $10,624,574 |
Wall Street Analysts
Professional analyst ratings and price targets
Past News Coverage
Recent headlines mentioning FICO from our newsroom.