Fair Isaac Corporation

Valuation Analysis

About the Company

Fair Isaac Corporation provides analytics software in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Scores and Software. The Scores segment offers business-to-business scoring solutions and services that give clients access to predictive credit and other scores that can be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. Its Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, and marketing, as well as associated professional services. This segment al

Fair Isaac Corporation Stock at a Glance

Fair Isaac Corporation (FICO) is currently trading at $1,179.19 with a market capitalization of $27.3B. The trailing P/E ratio stands at 37.46x, with a forward P/E of 21.66x. The 52-week range spans from $870.01 to $1,998.01; the current price is 41% below the yearly high. Year-over-year revenue growth stands at +38.7%. The net profit margin stands at 33.67%.

💰 Dividend

Fair Isaac Corporation currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

20 analysts rate Fair Isaac Corporation (FICO) on consensus: Buy. The average price target is $1,527.50, implying +29.54% from the current price. Analyst price targets range from $707.00 to $2,400.00.

Fair Isaac Corporation: The Investment Case in Detail

Fair Isaac Corporation (FICO) operates in the Technology — specifically Software - Application — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Top-line momentum is unusually strong with revenue expanding 38.7% year-over-year, a pace that puts the company well above the market average and signals genuine demand traction rather than mere cyclical tailwind. With a gross margin near 84.17%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Free cash flow is positive and net margins stand at 33.67%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

The Bear Case

Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

With a PEG ratio of 0.79, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 26.47x reflects rich expectations — historically, multiples at this level have proven hard to maintain for more than a few quarters.

What to Watch Next

• The forward P/E of 21.66x is meaningfully below the trailing 37.46x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 29.54% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to market-like volatility, elevated short interest (9.65%).

Trading Data

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