Education
About Us
Working with TipRanks
Follow Us
Factset Research (FDS)
NYSE:FDS
Top Page
Factset Research
(NYSE:FDS)
74Outperform
Positive Factors
Financial Performance
FDS delivered EPS above Street expectations, indicating strong financial performance.
Growth Strategy
FDS showcased numerous GenAI-enabled products across firm types that are expected to fuel growth going forward.
Revenue Generation
Revenue exceeded expectations, suggesting effective revenue generation strategies.
Negative Factors
Contract Loss
Pressure in the quarter also included a seven-figure contract cancellation.
Growth Concerns
Organic ASV growth of 4.1% was below expectations, indicating a slowdown in growth.
Market Outlook
The price target was lowered to $390 from $409, reflecting a cautious outlook.
Factset Research (FDS) vs. S&P 500 (SPY)
Market Cap
$16.49B
Dividend Yield0.96%
Average Volume (3M)312.62K
Price to Earnings (P/E)30.9
Beta (1Y)0.65
Revenue Growth4.66%
EPS Growth11.15%
CountryUS
Employees12,598
SectorFinancial
Sector Strength88
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)14.07
Shares Outstanding37,947,056
10 Day Avg. Volume219,219
30 Day Avg. Volume312,624
Financial Highlights & Ratios
PEG Ratio2.77
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.16
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit16.08
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$441.67Price Target Upside1.64% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering11
Factset Research Business Overview & Revenue Model
Company DescriptionFactSet Research Systems Inc., a financial data and analytics company, provides integrated financial information and analytical applications to the investment community in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company delivers insight and information through the workflow solutions of research, analytics and trading, content and technology solutions, and wealth. It serves portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial services entities. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.
How the Company Makes MoneyFactSet makes money through a subscription-based revenue model where clients pay for access to its suite of financial data and software solutions. The company's key revenue streams include selling licenses for its analytics and research platforms, providing enterprise solutions such as data feeds and APIs, and offering consulting services to optimize the use of its products. FactSet also generates revenue through strategic partnerships and collaborations with other data providers and financial institutions, enhancing its product offerings. The company's focus on innovation and integration of new data sources contributes significantly to its earnings by attracting and retaining clients in the competitive financial services industry.
Factset Research Key Performance Indicators (KPIs)
Any
Annual Subscription Value
Indicates the total revenue generated from subscriptions over a year, highlighting the company's ability to secure recurring revenue and customer loyalty.
Indicates the total revenue generated from subscriptions over a year, highlighting the company's ability to secure recurring revenue and customer loyalty.
Data provided by:
Main Street Data
Main Street DataFactset Research Financial Statement Overview
Summary
FactSet Research displays a strong financial position with consistent revenue growth, high profitability margins, and effective cash flow management. The balance sheet is solid, with an adequate equity cushion and manageable leverage. The company is well-positioned for continued growth, despite minor fluctuations in free cash flow growth.Income Statement
Factset Research has demonstrated strong and consistent revenue growth with a Revenue Growth Rate of 7.41% from 2024 to TTM (Trailing-Twelve-Months). The Gross Profit Margin is robust at 54.16%, and the Net Profit Margin stands at 24.06% for the TTM, indicating solid profitability. EBIT and EBITDA margins also reflect strong operational efficiency at 31.34% and 37.48%, respectively. Overall, the income statement reflects a healthy and growing profitability profile.85
Very Positive
Balance Sheet
The company's balance sheet shows a healthy equity position with an Equity Ratio of 48.48%. The Debt-to-Equity Ratio at 0.81 indicates a manageable level of leverage. Return on Equity (ROE) is impressive at 26.37%, showcasing effective use of equity for generating profits. However, the total debt level may pose moderate risk if not managed carefully.78
Positive
Cash Flow
Factset's cash flow statement is characterized by strong free cash flow generation, with a Free Cash Flow Growth Rate of -8.11% from 2024 to TTM, which reflects a minor decline, but the Free Cash Flow to Net Income Ratio is healthy at 1.04, indicating strong cash generation relative to net income. Operating Cash Flow to Net Income Ratio is robust at 1.22, showing efficient conversion of profits into cash.82
Very Positive
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.20B | 2.09B | 1.84B | 1.59B | 1.49B | Gross Profit |
| 1.19B | 1.11B | 972.79M | 805.04M | 798.66M | EBIT |
| 701.30M | 630.21M | 475.48M | 474.04M | 439.66M | EBITDA |
| 831.16M | 801.66M | 610.36M | 581.08M | 540.38M | Net Income Common Stockholders |
| 537.13M | 468.17M | 396.92M | 399.59M | 372.94M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 492.60M | 457.65M | 536.49M | 717.85M | 605.18M | Total Assets |
| 4.06B | 3.95B | 4.01B | 2.22B | 2.08B | Total Debt |
| 1.57B | 1.84B | 2.22B | 866.25M | 875.68M | Net Debt |
| 1.15B | 1.41B | 1.72B | 184.38M | 290.07M | Total Liabilities |
| 2.14B | 2.33B | 2.68B | 1.21B | 1.19B | Stockholders Equity |
| 1.91B | 1.62B | 1.33B | 1.02B | 898.17M |
| Cash Flow | Free Cash Flow | |||
| 614.66M | 584.79M | 487.12M | 493.90M | 428.20M | Operating Cash Flow |
| 700.34M | 645.57M | 538.28M | 555.23M | 505.84M | Investing Cash Flow |
| -144.32M | -95.39M | -2.03B | -135.99M | -73.63M | Financing Cash Flow |
| -560.85M | -632.02M | 1.34B | -322.71M | -218.07M |
Factset Research Technical Analysis
Neutral
434.56
Price Trends
436.39
Negative
453.33
Negative
449.07
Negative
Market Momentum
-1.75
Negative
52.69
Neutral
81.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FDS, the sentiment is Neutral. The current price of 434.56 is above the 20-day moving average (MA) of 423.82, below the 50-day MA of 436.39, and below the 200-day MA of 449.07, indicating a neutral trend. The MACD of -1.75 indicates Negative momentum. The RSI at 52.69 is Neutral, neither overbought nor oversold. The STOCH value of 81.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FDS.
Factset Research Risk Analysis
Factset Research disclosed 30 risk factors in its most recent earnings report. Factset Research reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Factset Research Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $155.38B | 39.78 | 11.68% | 0.73% | 12.98% | 42.72% | |
75 Outperform | $78.73B | 38.85 | 57.90% | 0.75% | 15.95% | 26.38% | |
74 Outperform | $16.49B | 30.88 | 28.12% | 0.96% | 4.66% | 11.15% | |
74 Outperform | $12.39B | 34.16 | 25.68% | 0.59% | 9.89% | 79.71% | |
70 Outperform | $43.00B | 38.22 | -117.99% | 1.19% | 11.67% | -0.89% | |
65 Neutral | $4.00B | ― | -0.64% | 2.23% | 2.93% | 39.49% | |
64 Neutral | $12.64B | 9.74 | 8.05% | 17044.60% | 12.66% | -4.62% |
* Financial Sector Average
Performance Comparison
FDS
Factset Research
434.56
2.59
0.60%
SPGI
S&P Global
506.62
84.03
19.88%
MCO
Moody's
464.75
79.97
20.78%
MORN
Morningstar
293.19
-4.13
-1.39%
MSCI
MSCI
555.82
85.96
18.29%
DNB
Dun & Bradstreet Holdings
8.97
-1.07
-10.66%
Factset Research Earnings Call Summary
Earnings Call Date:Mar 20, 2025
(Q2-2025)
| % Change Since: -0.88%|
Next Earnings Date:Jun 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced view with significant achievements in organic ASV growth, strategic acquisitions, and success in wealth management. However, these positives were tempered by challenges in the banking sector, lower price increases due to CPI, and increased technology costs. FactSet's proactive management of legacy products and strategic focus on high-growth areas suggest a forward-looking strategy despite current market challenges.Q2-2025 Updates
Positive Updates
Organic ASV Growth and Client Base Expansion
FactSet grew organic ASV by 4.1% year-over-year and increased its client base to over 8,600, with notable growth in corporates, wealth, and partners.
Strong Performance in Asia-Pacific
The Asia-Pacific region maintained 7% organic ASV growth, driven by strong sales in Data Solutions, particularly among wealth, corporates, hedge funds, and PEVC funds.
Wealth Management Success
FactSet saw double-digit growth in wealth management, highlighted by a strategic win with UBS selecting FactSet to power their advisor desktops and client-facing portal in the Americas.
LiquidityBook Acquisition
The acquisition of LiquidityBook is expected to enhance FactSet's capabilities and is anticipated to be immediately accretive to growth, with cross-sell opportunities already being executed.
Free Cash Flow Increase
Free cash flow increased by 23% year-over-year to $150 million, driven by positive working capital shifts and improved accounts receivable collections.
Negative Updates
Lower Price Increase Due to CPI
The annual price increase was lower than the prior year due to a decline in CPI, resulting in a $7 million headwind to ASV growth for the quarter.
Challenges in Banking Sector
FactSet experienced mixed results in the banking sector, with banking acting as a drag on growth due to market uncertainty and cautious client sentiment.
Legacy Product Retirement Impact
FactSet proactively retired a legacy and bespoke solution, resulting in a seven-figure cancellation and impacting ASV retention.
Increased Technology Costs
Technology-related expenses increased by 31% year-over-year due to higher cloud and software expenses, impacting operating margins.
Company Guidance
During FactSet's second fiscal quarter of 2025 earnings call, the company reported a 4.1% year-over-year growth in organic Annual Subscription Value (ASV), reaching over 8,600 clients and more than 219,000 users. The adjusted operating margin was 37.3%, and adjusted diluted EPS was $4.28. ASV retention remained above 95% with client retention at 91%. FactSet reaffirmed its organic ASV growth guidance midpoint of 5%, narrowing the anticipated top-line outcomes range. The company highlighted strong performance in wealth management and private equity, with organic ASV growth of 4% in the Americas, 3% in EMEA, and 7% in Asia-Pacific. FactSet also emphasized its strategic initiatives in generative AI, data solutions, and recent acquisitions, which contributed to its positive outlook for the second half of the fiscal year.Factset Research Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
FactSet Research Secures New $1.5 Billion Credit Agreement
Positive
Apr 8, 2025
On April 8, 2025, FactSet Research Systems Inc. entered into a new credit agreement with PNC Bank, National Association, establishing a $500 million senior unsecured term loan and a $1 billion revolving credit facility. This agreement, which replaces the 2022 Credit Agreement, aims to enhance the company’s financial flexibility and support its strategic initiatives, with the term loan used primarily to repay previous borrowings.
Spark’s Take on FDS Stock
According to Spark, TipRanks’ AI Analyst, FDS is a Outperform.
Factset Research demonstrates strong financial performance and strategic growth initiatives, supported by consistent revenue and profitability. However, the stock’s high valuation and technical indicators suggest caution. The earnings call reflects a balanced outlook with strategic achievements tempered by sector-specific challenges.
To see Spark’s full report on FDS stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.