$2,346.16
arrow_drop_up1.06%Is FICO a Buy or Sell based on AI Analysis?
Fundamental Analysis
Fair Isaac Corp (FICO) has a healthy market value of $32.34B with a strong revenue growth of 9.9%. The company boasts a high return on equity of 35.62% and a net margin of 28.37%, indicating efficient use of resources to generate profits. Additionally, FICO has a solid operating margin of 39.62%, showcasing strong operational efficiency. The company's free cash flow margin of 30.7% highlights its ability to generate cash after accounting for operating expenses and capital expenditures. Furthermore, FICO's current ratio of 1.3 suggests that it has enough current assets to cover its short-term liabilities, reflecting a healthy financial position. On the other hand, there are some areas of concern in FICO's fundamental analysis. The company has a negative equity of -$725.76M, indicating that its liabilities exceed its assets. Additionally, FICO has a high price to book ratio of 82.33, which may suggest that the stock is overvalued based on its book value. The price to sales ratio of 20.76 also indicates that the stock may be trading at a premium relative to its revenue. Moreover, the company's debt levels are relatively high, with debts of $1.99B and net debts of $1.83B. These factors may pose some risks and challenges for FICO in terms of financial stability and future growth prospects.
Positive Development
FICO's strong Q4 results and outperformance in the market indicate a robust financial performance. The company's strategic partnership with Cardinal Financial to offer a VA Mortgage-Backed Security decisioned on FICO's latest scoring model, FICO® Score 10 T, showcases its technology and analytics capabilities. FICO's upcoming presentations at investor conferences, including the Raymond James 45th Annual Institutional Investors Conference, highlight the company's confidence in its future growth and investor interest. FICO's high level of cash reserves and low debt-to-equity ratio indicate a strong financial position.
Negative Development
FICO's high PE ratio of 63.5314 may indicate high valuations, which could be a concern for potential investors. The company's long-term debt to total asset ratio of 1.135 and long-term debt to total capital ratio of 1.4634 indicate a higher level of debt, which could pose a financial risk if not managed properly. FICO's high net debt to total capital ratio of 1.4574 suggests that the company has a high level of debt relative to its capital, which could be a concern for investors.
Technical Analysis
Fair Isaac Corp (FICO) has a technical rating of "SELL" based on various indicators, including MACD, ADX, and ROC. The stock has a price of $1.3K with a delta price of $6.05 and a delta price percent of 0.47%. The company's technical indicators also show that it has one technical buy indicator (ATR), three technical hold indicators (MACD, ADX, and ROC), and four technical sell indicators (RSI, CCI, WILLR, and STOCHRSI). This information suggests that there may be some volatility in the stock's price in the near future, and investors should closely monitor the technical signals to make informed decisions. Additionally, Fair Isaac Corp's stock sector is Technology, and it has seen a 28.55% change in the sector over the past year. The company's stock market has also experienced a 52.77% change in the same period. This information provides valuable insight into the company's performance within the technology sector and the broader market. Investors may consider these sector and market changes when evaluating the company's stock performance in relation to industry trends and market conditions.
Conclusion and recommendation
Based on the data provided, Fair Isaac Corp (FICO) appears to be a stable and profitable company in the technology sector. With a market capitalization of $32.34B and a strong revenue growth of 9.9%, FICO has shown consistent financial performance. The company also boasts impressive margins, with a net margin of 28.37% and a return on equity of 35.62%. Additionally, FICO has a low debt-to-equity ratio and a healthy current ratio of 1.3, indicating a strong financial position. In conclusion, based on the data presented, I would recommend considering Fair Isaac Corp (FICO) as a potential investment opportunity. The company's solid financial performance, strong market position, and positive growth outlook make it a promising candidate for long-term investment. However, it is important to conduct further research and analysis to fully understand the risks and potential rewards associated with investing in FICO. Overall, FICO's impressive financial metrics and market scores suggest that it is a company worth considering for investors looking for a stable and profitable investment in the technology sector.