Fair Isaac Corp (FICO)
Information Technology · Application Software · US stock · S&P 500 component
$823.27
▲ +28.06 (3.53%)
Fair valueUndervalued
$984 +19.5% to fair value
$492fair band $837–$1,192$1,476
Day's range
$802.96 – $828.95
52-week range
$586.05 – $1,858.91
Red flags⚠ Negative equity⚠ Negative equity⚠ Negative equity⚠ Negative equity⚠ Negative equity
About Fair Isaac Corp
Fair Isaac provides analytics software and credit scoring. Its FICO Score is widely used by lenders to judge the credit risk of consumers, and the company also sells decision management software to banks, insurers and other businesses. Revenue comes from fees charged for scores, which are paid by credit bureaus and lenders, and from software licenses and subscriptions.
Over the last twelve months Fair Isaac Corp reported revenue of $2.4 billion. Over three years revenue has grown by 13.1% a year. The operating margin is 51.7%. Return on invested capital is 76%. Net debt to EBITDA is 4.3 times. It does not pay a dividend. The X-Ray Score is 71 out of 100. Return on invested capital describes how much profit the business earns relative to the money put into it.
Price chart
52-wk range $586.05 – $1,858.91Volume 414,933Daily, split-adjusted
Vitals
Market cap$18.7B
52-week range$586.05 – $1,858.91
Volume (last day)414,933
P/E (TTM)24.0
EBIT / EV yield5.1%
Free-cash-flow yield5.3%
Dividend yieldNo dividend
Revenue (TTM)$2.4B
Net income (TTM)$815M
Operating margin51.7%
Return on capital76.5%
Debt incl. leases$5.6B
Cash & securities$248M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$984middle half of models $855 – $1,189
Undervalued
+19.5% to fair value
Average of the 12 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $823
Undervalued < $837Fair $837 – $1,192Overvalued > $1,192
P/E multiple
$970
P/S multiple
$1,072
EV/EBITDA multiple
$1,057
EV/EBIT multiple
$1,301
EV/revenue multiple
$935
10-year DCF, EBITDA exit
$1,203
5-year DCF, EBITDA exit
$1,253
10-year DCF, revenue exit
$1,158
5-year DCF, revenue exit
$1,184
10-year DCF, growth exit
$612
5-year DCF, growth exit
$538
Earnings power value
$522
Growth the price implies
15.7%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business at a low price
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
82/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield5.1%
Free-cash-flow yield5.3%
Fair value vs price1.2×
Growth
Fair
65/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)13.1%
EPS growth (3y)23.2%
Growth consistency100%
Profitability
Strong
84/100
Earns high returns on the capital it uses.
See the numbers →
Return on invested capital76.5%
Operating margin51.7%
Gross profitability100.0%
Financial health
Weak
47/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA4.3×
Interest cover6.6×
Dividends
None
–/100
Pays no dividend.
See the numbers →
Quarterly results: last 6 quarters
+15.0%
Mar '25
+19.8%
Jun '25
+13.6%
Sep '25
+16.4%
Dec '25
+38.7%
Mar '26
+25.7%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $674M, diluted EPS $10.45.
Compare with peers
ADBE Adobe Inc.77 INTU Intuit Inc.71 ADSK Autodesk, Inc.67 PLTR Palantir Technologies...63Other Application Software companies by X-Ray Score.
SWOT analysis: Fair Isaac Corp
Strengthsinside the company
- Return on invested capital is 76.5%, against a median of 19.7% for industry peers.
- Operating margin of 51.7% is well above the 26.2% median of industry peers, a sign of pricing power or lower costs.
- Revenue has grown 13.1% a year over three years (median 12.3% for industry peers).
- Earnings per share have compounded at 23.2% a year over three years.
Weaknessesinside the company
- Net debt is 4.3x EBITDA, above the 3x level that lenders usually watch.
Opportunitiesvaluation and setting
- Trades at 22.9x earnings, 38% below the 37.1x median of industry peers.
- The price is 20% below our fair value estimate, with the gap larger than the margin we allow for error.
- Our Market Compass rates the backdrop for Information Technology as favourable.
Threatsvaluation and setting
- Heavy debt makes profits sensitive to interest rates and refinancing conditions.
- Our checks raised: Negative equity; Negative equity.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare FICO with peers and sector
Medians of 13 Application Software peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): PLTR 63, ORCL 56, CRM 52, ADBE 77, INTU 71, DDOG 50.
| Metric | FICO | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 71 | 57 | 50 |
| Valuation | 81 | 60 | 50 |
| Growth | 65 | 63 | 54 |
| Profitability | 84 | 61 | 49 |
| Financial health | 47 | 50 | 50 |
| Dividends | – | 72 | 50 |
Sector leaders: highest X-Ray Score in Information Technology
FICO ranks #5 of 75 in Information Technology and #3 of 14 in Application Software by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for FICO
Each factor is rated by where FICO stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 11 Good · 5 Average · 4 Bad of 20
Growth: 1 · 2 · 0
Profitability: 4 · 0 · 0
Financial strength: 1 · 0 · 3
Valuation: 3 · 1 · 0
Cash flow: 2 · 2 · 0
Efficiency: 0 · 0 · 1
| Factor | FICO | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +13.1% | Average beats 66% | +9.7% | – | – |
| Revenue growth, last year | +15.9% | Average beats 59% | +13.7% | +9.9% | ▲ Better |
| EPS growth, 3 years a year | +23.2% | Good beats 75% | +5.9% | – | – |
| Profitability | |||||
| Gross margin | 85.1% | Good beats 95% | 57.8% | 79.4% | ≈ In line |
| Operating margin | 51.7% | Good beats 94% | 20.3% | 42.5% | ▲ Better |
| Net margin | 34.1% | Good beats 86% | 17.8% | 29.8% | ▲ Better |
| Return on invested capital | 76.5% | Good beats 90% | 19.4% | – | – |
| Financial strength | |||||
| Net debt / EBITDA | 4.3x | Bad beats 4% | 0.8x | 2.8x | ▼ Worse |
| Interest cover | 6.6x | Bad beats 13% | 23.0x | 6.9x | ≈ In line |
| Current ratio | 1.18 | Bad beats 33% | 1.57 | 1.46 | ▼ Worse |
| Piotroski F-score | 7 / 9 | Good beats 68% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 22.9x | Good beats 67% | 33.6x | 51.3x | ▲ Better |
| Price / sales | 7.8x | Average beats 43% | 6.9x | 14.6x | ▲ Better |
| EV / EBITDA | 19.2x | Good beats 68% | 24.7x | 36.1x | ▲ Better |
| Free cash flow yield | 5.3% | Good beats 77% | 3.4% | 2.1% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 41.6% | Good beats 90% | 22.3% | 36.3% | ▲ Better |
| Cash from operations / net income | 1.23 | Average beats 34% | 1.39 | 1.19 | ≈ In line |
| Free cash flow growth, 3 years a year | +15.2% | Average beats 48% | +15.4% | – | – |
| Accruals (lower is better) | −9.2% | Good beats 79% | −4.4% | – | – |
| Efficiency | |||||
| Days sales outstanding | 90 days | Bad beats 10% | 63 days | 91 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 11 Good · ● 2 Average · ● 3 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldGood
Risk models
Altman Z''Good
Piotroski F-ScoreGood
Growth
EPS growth (3y)Good
Free-cash-flow growth (3y)Average
Revenue growth (3y)Average
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDABad
Interest coverBad
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 70/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $1.3B | $1.4B | $1.5B | $1.7B | $2.0B |
| Operating income | $505M | $542M | $643M | $734M | $925M |
| Net income | $392M | $374M | $429M | $513M | $652M |
| Operating cash flow | $424M | $509M | $469M | $633M | $779M |
| Operating margin | 38.4% | 39.4% | 42.5% | 42.7% | 46.5% |
| Free cash flow | $416M | $503M | $465M | $624M | $770M |
| Diluted EPS | $13.40 | $14.18 | $16.93 | $20.45 | $26.54 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bearish
5 bullish · 2 neutral · 9 bearish
Weekly
Strongly bearish
0 bullish · 1 neutral · 11 bearish
Monthly
Strongly bearish
0 bullish · 1 neutral · 7 bearish
Moving averages (daily)
| SMA 10 | 759.1 | Bullish |
| EMA 10 | 773.0 | Bullish |
| SMA 20 | 730.1 | Bullish |
| EMA 20 | 781.5 | Bullish |
| SMA 50 | 918.1 | Bearish |
| EMA 50 | 882.6 | Bearish |
| SMA 100 | 1,051.3 | Bearish |
| EMA 100 | 996.0 | Bearish |
| SMA 200 | 1,149.9 | Bearish |
| EMA 200 | 1,145.5 | Bearish |
Oscillators (daily)
| RSI (14) | 52.66 | Neutral |
| MACD (12, 26) | -30.50 | Bearish |
| Momentum (12) | 18.38 | Bullish |
| Stochastic %K (14) | 96.84 | Bearish |
| Williams %R (14) | -3.16 | Bearish |
| CCI (20) | 99.20 | Neutral |
Pivot points (classic, last session)
S3 781.8 | S2 792.4 | S1 807.8 | Pivot 818.4 | R1 833.8 | R2 844.4 | R3 859.8 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
ETFs that hold FICO
| ETF | Share of the fund |
|---|---|
| AKRE Akre Focus | 5.96% |
| MOAT VanEck Morningstar Wide Moat | 2.14% |
| RSPT Invesco S&P 500 Equal Weight Technolog... | 1.26% |
| IGV iShares Expanded Tech-Software Sector | 1.05% |
| CGGR Capital Group Growth | 0.80% |
| XSW SPDR S&P Software & Services | 0.72% |
| IWP iShares Russell Mid-Cap Growth | 0.61% |
| VOT Vanguard Mid-Cap Growth | 0.58% |
The eight funds with the largest weight in FICO among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
FICO stock splits
FICO has split its stock 4 times since 1995. The latest was a 3-for-2 split on 11 Mar 2004.
Full FICO stock split history →FICO SEC filings
8-KSEC EDGAR
Exit or restructuring costs
8-KSEC EDGAR
Results of operations
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Entered a material agreement; Other events
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Entered a material agreement
8-KSEC EDGAR
Other events
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.