Fair Isaac (FICO) AI Stock Analysis

• Market Cap: $37.04B
• Dividend Yield: N/A
• Average Volume (3M): 316.75K
• Price to Earnings (P/E): 60.6
• Beta (1Y): 1.38
• Revenue Growth: 16.66%
• EPS Growth: 34.26%
• Country: US
• Employees: 3,718
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 8.57
• Shares Outstanding: 24,003,656
• 10 Day Avg. Volume: 261,154
• 30 Day Avg. Volume: 316,751
• PEG Ratio: 4.46
• Price to Book (P/B): -49.82
• Price to Sales (P/S): 27.92
• P/FCF Ratio: 78.96
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 24.64
• Enterprise Value/Gross Profit: 30.15
• Enterprise Value/Ebitda: 52.32
• 1Y Price Target: $1,975.08
• Price Target Upside: 30.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 72 Outperform
• Price Target: $1,686.00 ▲(11.01% Upside)

Fair Isaac's strong earnings performance and cash flow are major positives, supported by strategic initiatives and product innovation. However, high valuation and balance sheet risks temper the overall outlook.

Positive Factors

Revenue Growth

The 20% revenue growth reflects strong demand for FICO's products, indicating effective market strategies and potential for sustained expansion.

Cash Flow Strength

Strong cash flow growth indicates efficient operations and provides financial flexibility for future investments and debt management.

Product Innovation

Innovative product launches enhance FICO's competitive edge and open new revenue streams, supporting long-term growth in a dynamic market.

Negative Factors

Balance Sheet Risks

Negative equity indicates liabilities exceed assets, posing financial risks and potentially limiting the company's ability to leverage future opportunities.

Mortgage Market Challenges

Persistent challenges in the mortgage market could impact FICO's growth in this segment, affecting revenue from related products and services.

Uncertainties in FHFA Decision

Regulatory uncertainties could disrupt FICO's market position in the mortgage industry, affecting long-term revenue stability and growth.

Fair Isaac Business Overview & Revenue Model

Company Description

Fair Isaac Corporation develops analytic, software, and data management products 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 offers pre-configured decision management solution designed for various business problems or processes, such as marketing, account origination, customer management, customer engagement, fraud detection, financial crimes compliance, collection, and marketing, as well as associated professional services. This segment also provides 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 analytics to 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. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in Bozeman, Montana.

How the Company Makes Money

FICO generates revenue through a combination of software licenses, subscription services, and consulting fees. The company primarily earns money from its analytics and decision management software, which is sold as a one-time license or through annual subscriptions. FICO also generates significant revenue from its credit scoring services, as lenders pay to access FICO Scores and related analytic tools. Additionally, the company has established partnerships with various financial institutions and technology firms, which can provide supplementary revenue through joint offerings and integrations. FICO's focus on developing innovative solutions in fraud detection and risk management further enhances its revenue potential in a growing market.

Fair Isaac Financial Statement Overview

Summary

Fair Isaac shows strong profitability and cash flow, with impressive margins and cash flow ratios. However, the negative equity and high financial leverage are significant concerns.

Income Statement

Fair Isaac demonstrates strong profitability with a rising gross profit margin of 81.7% and a healthy net profit margin of 32.8% in TTM. Revenue growth is robust at 12.3% over the last year, indicating strong market demand and effective business strategy. The EBIT margin of 45.9% and EBITDA margin of 46.3% further highlight operational efficiency. However, future growth could be impacted by industry competition and economic fluctuations.

Balance Sheet

The company's balance sheet shows a negative stockholders' equity, which is concerning as it indicates liabilities exceeding assets. The debt-to-equity ratio is high due to negative equity, reflecting financial leverage risks. Return on equity is not meaningful with negative equity, but the company maintains an equity ratio of -75.0%, underscoring potential financial instability.

Cash Flow

Cash flow generation is strong, with a free cash flow growth rate of 23.3%, indicating effective cash management and operational success. The operating cash flow to net income ratio is high at 1.23, showing efficient conversion of earnings to cash. The free cash flow to net income ratio of 1.22 further supports strong cash flow sustainability. These metrics indicate a robust cash flow position despite balance sheet weaknesses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.93B	1.72B	1.51B	1.38B	1.32B	1.29B
Gross Profit	1.58B	1.37B	1.20B	1.08B	984.07M	933.42M
EBITDA	908.54M	761.49M	663.81M	560.74M	538.83M	329.54M
Net Income	632.62M	512.81M	429.38M	373.54M	392.08M	236.41M
Balance Sheet
Total Assets	1.86B	1.72B	1.58B	1.44B	1.57B	1.61B
Cash, Cash Equivalents and Short-Term Investments	189.05M	150.67M	136.78M	133.20M	195.35M	157.39M
Total Debt	2.80B	2.24B	1.90B	1.91B	1.33B	907.64M
Total Liabilities	3.26B	2.68B	2.26B	2.24B	1.68B	1.28B
Stockholders Equity	-1.40B	-962.68M	-687.99M	-801.95M	-110.94M	331.08M
Cash Flow
Free Cash Flow	747.91M	607.41M	464.68M	503.42M	416.25M	342.93M
Operating Cash Flow	781.62M	632.96M	468.92M	509.45M	423.82M	364.92M
Investing Cash Flow	-37.95M	-27.99M	-15.95M	-5.67M	137.85M	-24.58M
Financing Cash Flow	-714.73M	-592.92M	-455.00M	-547.16M	-523.57M	-289.42M

Fair Isaac Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1518.78
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FICO, the sentiment is Negative. The current price of 1518.78 is below the 20-day moving average (MA) of 1534.89, above the 50-day MA of 1465.43, and below the 200-day MA of 1772.48, indicating a neutral trend. The MACD of 16.87 indicates Positive momentum. The RSI at 51.06 is Neutral, neither overbought nor oversold. The STOCH value of 53.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FICO.

Fair Isaac Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FICO	72 Outperform	$37.04B	60.56	-47.82%	―	16.66%	34.26%
WDAY	71 Outperform	65.86B	114.08	6.36%	―	14.21%	-62.56%
DT	71 Outperform	14.93B	30.47	18.27%	―	18.70%	214.47%
DDOG	68 Neutral	48.50B	401.82	3.90%	―	26.00%	-25.64%
TTD	59 Neutral	23.05B	56.84	15.48%	―	23.18%	63.48%
TEAM	58 Neutral	43.72B	-169.70	-19.08%	―	19.66%	15.17%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Fair Isaac Corporate Events

Fair Isaac Announces Retirement of Scores President

On August 28, 2025, Fair Isaac Corporation (FICO) announced the retirement of James Wehmann, President of Scores, effective September 5, 2025. Wehmann, who joined FICO in 2012, is stepping down to focus on family and personal interests. CEO William Lansing will assume direct responsibility for the Scores business, acknowledging Wehmann’s significant contributions and leaving the Scores division in a strong position.

The most recent analyst rating on (FICO) stock is a Buy with a $1800.00 price target. To see the full list of analyst forecasts on Fair Isaac stock, see the FICO Stock Forecast page.