Fair Isaac Corporation (FICO) – Strong quarter, but expensive valuation

Fair Isaac Corporation (FICO) (Q2FY23)

Introduction

Fair Isaac Corporation develops analytic, software, and data decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Scores and Software.

The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services. This segment also offers FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases.

The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to predictive credit and other scores that can be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. Fair Isaac Corporation markets its products and services primarily through its direct sales organization and indirect channels, as well as online.

Highlights

FICO is committed to cutting-edge technology, offering analytics and AI capability to enable smarter business decisions at scale. The company is assisting clients in maximizing the customer experience by forecasting, analyzing, and optimizing customer interactions in real time in order to make better customer decisions across the enterprise.

Stock performance

The stock movement in the past three months, rising over 15.34%. The strength in this move came after FICO announced Q2FY23, even in these uncertain economic times the company showed strength in most businesses led by rising profitability.

Fair Isaac Corporation stock price increased by 94.73% in the past 1-year. The stock has a 52-week high of $815.64 and its 52-week low is $389.84.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages : 35

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