Fair Isaac Current Valuation vs. Return On Equity
| FICO Stock | USD 1,353 13.46 0.98% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.53 | 0.72 |
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| Net Profit Margin | 0.27 | 0.26 |
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| Operating Profit Margin | 0.4 | 0.38 |
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| Pretax Profit Margin | 0.35 | 0.33 |
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| Return On Assets | 0.26 | 0.25 |
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For Fair Isaac profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fair Isaac to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fair Isaac utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fair Isaac's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fair Isaac over time as well as its relative position and ranking within its peers.
Fair |
Fair Isaac's Revenue Breakdown by Earning Segment
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Is Fair Isaac's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Fair Isaac. If investors know Fair will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Fair Isaac listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.29 | Earnings Share 19.08 | Revenue Per Share 64.581 | Quarterly Revenue Growth 0.141 | Return On Assets 0.2687 |
The market value of Fair Isaac is measured differently than its book value, which is the value of Fair that is recorded on the company's balance sheet. Investors also form their own opinion of Fair Isaac's value that differs from its market value or its book value, called intrinsic value, which is Fair Isaac's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fair Isaac's market value can be influenced by many factors that don't directly affect Fair Isaac's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fair Isaac's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fair Isaac is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fair Isaac's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Fair Isaac Return On Equity vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Fair Isaac's current stock value. Our valuation model uses many indicators to compare Fair Isaac value to that of its competitors to determine the firm's financial worth. Fair Isaac is rated as one of the top companies in current valuation category among related companies. It is one of the top stocks in return on equity category among related companies . The ratio of Current Valuation to Return On Equity for Fair Isaac is about 99,330,368,826 . At this time, Fair Isaac's Return On Equity is very stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Fair Isaac by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Fair Isaac's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Fair Isaac's earnings, one of the primary drivers of an investment's value.Fair Isaac's Earnings Breakdown by Geography
Fair Current Valuation vs. Competition
Fair Isaac is rated as one of the top companies in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Information Technology industry is currently estimated at about 36.65 Billion. Fair Isaac totals roughly 35.38 Billion in current valuation claiming about 97% of equities under Information Technology industry.
Fair Return On Equity vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Fair Isaac |
| = | 35.38 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Fair Isaac |
| = | 0.36 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Fair Return On Equity Comparison
Fair Isaac is currently under evaluation in return on equity category among related companies.
Fair Isaac Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Fair Isaac, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fair Isaac will eventually generate negative long term returns. The profitability progress is the general direction of Fair Isaac's change in net profit over the period of time. It can combine multiple indicators of Fair Isaac, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -91.9 M | -87.3 M | |
| Operating Income | 739.3 M | 776.2 M | |
| Income Before Tax | 636.7 M | 668.5 M | |
| Total Other Income Expense Net | -78.5 M | -74.6 M | |
| Net Income | 493.8 M | 518.5 M | |
| Income Tax Expense | 142.9 M | 150 M | |
| Net Income Applicable To Common Shares | 493.8 M | 518.5 M | |
| Net Income From Continuing Ops | 493.8 M | 518.5 M | |
| Non Operating Income Net Other | -2.5 M | -2.3 M | |
| Interest Income | 45.7 M | 33.6 M | |
| Net Interest Income | -86 M | -81.7 M | |
| Change To Netincome | 101.6 M | 58.5 M | |
| Net Income Per Share | 15.47 | 16.24 | |
| Income Quality | 1.26 | 1.85 | |
| Net Income Per E B T | 0.70 | 0.54 |
Fair Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Fair Isaac. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Fair Isaac position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Fair Isaac's important profitability drivers and their relationship over time.
Use Fair Isaac in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fair Isaac position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fair Isaac will appreciate offsetting losses from the drop in the long position's value.Fair Isaac Pair Trading
Fair Isaac Pair Trading Analysis
The ability to find closely correlated positions to Fair Isaac could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fair Isaac when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fair Isaac - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Fair Isaac to buy it.
The correlation of Fair Isaac is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fair Isaac moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fair Isaac moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Fair Isaac can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Fair Isaac position
In addition to having Fair Isaac in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Healthcare Funds Thematic Idea Now
Healthcare Funds
Funds or Etfs investing in medical and healthcare goods or services as well as hospital management or maintenance organizations. The Healthcare Funds theme has 34 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Healthcare Funds Theme or any other thematic opportunities.
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Check out Investing Opportunities. To learn how to invest in Fair Stock, please use our How to Invest in Fair Isaac guide.Note that the Fair Isaac information on this page should be used as a complementary analysis to other Fair Isaac's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Complementary Tools for Fair Stock analysis
When running Fair Isaac's price analysis, check to measure Fair Isaac's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Fair Isaac is operating at the current time. Most of Fair Isaac's value examination focuses on studying past and present price action to predict the probability of Fair Isaac's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fair Isaac's price. Additionally, you may evaluate how the addition of Fair Isaac to your portfolios can decrease your overall portfolio volatility.
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To fully project Fair Isaac's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Fair Isaac at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Fair Isaac's income statement, its balance sheet, and the statement of cash flows.