To The Moon

$Fair Isaac(FICO)$

Fair Isaac Corporation (FICO) has been performing well recently. In the fourth quarter of fiscal 2024, the company reported earnings of $6.54 per share, which was a 30.5% increase year over year. Revenues of $454 million increased by 16.4% compared to the same period last year.

The company also raised its guidance for fiscal year 2025, projecting a revenue growth of 15% and an earnings per share (EPS) increase of 20%. Analysts have maintained a Buy rating on the stock, with price targets ranging from $2,350 to $2,500.

Q3 with P/E108.63, P/FCF90.09, this stock is not cheap, can the Bull continue..

Company overview

FICO (Fair Isaac Corporation) is a leading analytics software company that helps businesses make better decisions to drive growth, profitability, and customer satisfaction. Here are some key points about FICO:

The company is best known for its FICO Score product, a standard measure of consumer credit risk in the United States. FICO also provides a wide range of analytics software and tools used across multiple industries to manage risk, fight fraud, build profitable customer relationships, optimize operations, and meet government regulations. FICO operates in two main segments: Scores and Software. The Scores segment provides business-to-business scoring solutions, while the Software segment offers pre-configured analytic and decision management solutions. FICO serves clients in over 90 countries, including more than half of the top 100 banks in the world, 600 personal and commercial line insurers, 400+ retailers, and 95 of the 100 largest financial institutions in the U.S. Revenue: For the fiscal year 2020, FICO reported a revenue of $1.29 billion

Earning overview

Here's an overview of FICO's recent earnings:

Fourth Quarter Fiscal 2024: FICO reported GAAP net income of $135.7 million ($5.44 per share) and non-GAAP net income of $163.2 million ($6.54 per share). This was an increase from the prior year period.

Third Quarter Fiscal 2024: FICO reported GAAP net income of $126.3 million ($5.05 per share) and non-GAAP net income of $156.4 million ($6.25 per share).

Revenue Growth: For the fourth quarter, FICO reported revenues of $453.8 million, up 16% from the prior year period. The company's Scores segment saw a 27% increase in revenue, while the Software segment saw a 5% increase.

Cash Flow: Net cash provided by operating activities for the fourth quarter was $226.5 million, up from $164.0 million in the prior year period.

FICO's strong performance and growth in both segments indicate a positive outlook for the company.

Fair Isaac Free Cash Flow History

For the twelve months ending June 30, 2024, FICO reported a free cash flow (FCF) of $551.04 million, which is a 25.35% increase from the same period last year. This strong free cash flow indicates that FICO is generating significant cash from its operations after accounting for capital expenditures.

Risk & Reward

FICO carries both risks and rewards for investors. Here are some key points:

Market Competition: FICO faces intense competition from other analytics software companies, which can impact its market share and profitability.

• Technological Changes: Rapid advancements in technology and data analytics require continuous innovation and investment to stay competitive.

• Regulatory Compliance: Changes in regulations related to data privacy and consumer protection can impact FICO's operations and financial performance.

• Economic Conditions: Economic downturns can reduce demand for FICO's products and services, affecting its revenue and profitability.

Market Leadership: FICO is a leading provider of analytics software, with a strong presence in the financial services industry and other sectors.

• Growth Potential: The company's revenue grew by 16% to $453.8 million in the fourth quarter of fiscal 2024, indicating strong growth potential.

• Innovation: FICO continues to innovate with new products and solutions, such as its Applied Analytics & ML platform, which enhances decision-making capabilities for its clients.

• Strong Financial Performance: FICO reported strong earnings and free cash flow, indicating a solid financial position.

Market Sentiment

• Analyst Ratings: Analysts have a positive outlook on FICO, with many rating the stock as a "Buy".

• Price Targets: Analysts have set price targets around $2,300 per share, indicating confidence in the company's growth potential.

• Financial Performance: FICO reported strong earnings for the fourth quarter of fiscal 2024, with adjusted profit of $163.2 million ($6.54 per share), beating Street expectations.

• Revenue Growth: The company's revenue grew by 16% to $453.8 million in the fourth quarter, driven by strong demand for its credit-scoring products.

• Market Position: FICO is a leading provider of analytics software, with a strong presence in the financial services industry and other sectors.

Overall, the positive sentiment is supported by FICO's strong financial performance, growth potential, and market leadership.

Business Future Promise

FICO's business future looks promising, driven by innovation and strategic initiatives. Here are some key points:

• Applied Intelligence: FICO is focusing on Applied Intelligence to power customer connections and decision-making. This involves leveraging artificial intelligence (AI) and machine learning to provide real-time, situation-relevant insights.

• FICO Platform: The company is enhancing its FICO Platform to revolutionize customer connections and redefine how businesses engage with their audience. The platform aims to deliver personalized experiences at scale, fostering collaboration and breaking down silos to build meaningful customer relationships.

• Customer Experience: FICO is committed to creating next-generation customer experiences by unlocking the potential of Applied Intelligence and creating a connected end-to-end customer experience.

• Strategic Vision: FICO's CEO, Will Lansing, emphasized the company's clarity of purpose—applying analytics to data for informed decisions—and its commitment to innovation and excellence.

• Economic Impact: A commissioned study by Forrester Consulting found that FICO Platform customers noted improved customer retention, significant cost savings by upgrading legacy infrastructure, and heightened employee efficiency. Companies could see savings and profits of over $50 million in three years.

Conclusion

The company is great but stock is too expensive to invest