Fair Isaac Corporation (FICO) Fundamental Checkup
Fair Isaac Corporation fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of September 4, 2026.
By TGMCharts Research · Data as of · Updated
Fair Isaac Corporation shows a distinctive pattern where five-year EPS growth of 27.04% outpaces top-line growth of 12.03%, backed by a net margin of 34.05% and a return on invested capital of 59.42%.
The checkup weighs operating growth, shareholder conversion, cash conversion, reinvestment quality, and balance-sheet flexibility. Current ratio is 1.18x and debt-to-equity is -1.37x, so the balance-sheet read is part of the final view rather than a footnote.
- Fair Isaac Corporation has market cap of $20.13B and closed at $932 on September 4, 2026.
- Five-year revenue CAGR is 12.03% and five-year EPS CAGR is 27.04%.
- Five-year free-cash-flow CAGR is 16.63%.
- Net margin is 34.05% and ROIC is 59.42%.
- Current ratio is 1.18x and debt-to-equity is -1.37x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
Evaluating the Alignment of Growth Profitability and Valuation
Analyzing Fair Isaac Corporation requires evaluating whether its expansion rate, cash generation, operating returns, and capital structure present a unified fundamental profile. With the stock trading at $932 as of September 4, 2026, this research note investigates the operational track record behind the market price. Rather than relying on a single metric, this checkup examines the balance between top-line expansion and bottom-line efficiency.
Over the past five years, the company has generated a revenue CAGR of 12.03% alongside an EPS CAGR of 27.04%. This relationship indicates that per-share profits have expanded faster than gross sales. We compare these figures against a five-year free cash flow CAGR of 16.63% to evaluate the quality of these reported earnings.
Current compounder snapshot · FICO
Live supporting context; not part of the article's frozen 2026-09-04 evidence snapshot.
- Score
- 31/100
- 10Y CAGR
- 9%
- Median YoY
- 10.6%
- YoY volatility
- σ 8.2pp· smooth
- Quarters ≥ 20%
- 4 of 40
- Negative quarters
- 3
- Valuation vs own 10Y history
- P/S 8.8x · 10Y median 10.2x · 39th percentile · as of Sep 4, 2026
How this score is computed
- Quarters at or above 20%: 4 of 40 → 4 of 40 pts
- Steadiness (typical swing 8.2pp) → 19.1 of 25 pts
- Pace (median 10.6% YoY) → 0 of 20 pts
- Latest quarter (25.7% YoY) → 8 of 15 pts
- Score: 31 of 100
Annualized revenue (TTM) · by quarter, last 40
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
An Operational Overview of the Enterprise
As a participant in the Technology sector, Fair Isaac Corporation must be assessed on its tangible operational metrics rather than market sentiment. The business model converts revenue into high-margin profitability, which can be seen in the consolidated operational data. This snapshot integrates the firm's market capitalization of $20.13B with its underlying financial performance, setting up the detailed analysis of the individual financial statements.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
FICO revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 12.03%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 12.03% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Top Line Expansion Translating to Per Share Profits
The relationship between revenue growth and earnings per share highlights the efficiency of the business model. While five-year revenue growth averaged 12.03% annually, EPS expanded at a faster rate of 27.04%. This divergence suggests that operating leverage, share repurchases, or structural cost efficiencies have amplified the value reaching common shareholders from each dollar of sales.
FICO EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 27.04%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 27.04% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Assessing the Quality of Cash Flow Generation
Earnings growth must be supported by cash generation to confirm its sustainability. The five-year free cash flow CAGR stands at 16.63%, indicating that cash flow has expanded steadily but has not fully matched the accelerated pace of EPS growth. This variance suggests that non-cash items or working capital requirements warrant ongoing monitoring to ensure that reported profits remain fully backed by cash inflows.
FICO free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 16.63%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 16.63% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Operating Margins and Reinvestment Efficiency
The underlying strength of the business is demonstrated by its net margin of 34.05% and a return on invested capital of 59.42%. The high ROIC indicates that the capital deployed back into the business generates strong returns, which helps sustain the growth trajectory. Meanwhile, the net margin shows that a significant portion of revenue is successfully preserved as net income.
FICO net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 34.05%. The bars below are annual fiscal years.
Net margin of 34.05% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
FICO ROIC
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 59.42%.
ROIC of 59.42% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Capital Structure and Liquidity Constraints
Balance sheet parameters establish the operational boundaries for future growth. The current ratio of 1.18x indicates a modest short-term liquidity cushion, while the debt-to-equity ratio of -1.37x reflects a capital structure heavily reliant on debt financing, resulting in negative accounting equity. This leverage profile requires consistent cash flow to service obligations and maintain corporate flexibility.
FICO debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: -1.37x.
Debt-to-equity of -1.37x and current ratio of 1.18x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Market Multiples and Earnings Yield Analysis
The valuation metrics indicate what performance expectations are already priced into the stock. Trading at a trailing P/E ratio of 26.93x, the market demands sustained high-level execution. This multiple corresponds to an earnings yield of 3.71%, which serves as the benchmark return investors receive relative to the current share price.
FICO Price Chart
Latest close: $932 as of September 4, 2026.
The close at $932 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Key Structural Drivers and Vulnerabilities
The positive fundamental case rests on the consistent alignment of high operational returns, represented by an ROIC of 59.42%, with robust net margins. However, the primary risk to this thesis is the leveraged balance sheet, marked by a debt-to-equity ratio of -1.37x. If free cash flow growth falls below the historical CAGR of 16.63%, servicing this debt could limit capital allocation options.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 12.03% and five-year EPS CAGR of 27.04% support the business case.
- Net margin of 34.05% and ROIC of 59.42% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 16.63% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of -1.37x and current ratio of 1.18x are the balance-sheet checks that can change the view.
Synthesized Research Assessment
In conclusion, the company demonstrates strong operational performance, though the current market price sits above the analyst DCF fair value estimate. This fundamental profile would need to be reevaluated if future quarterly reports show a deceleration in the revenue CAGR of 12.03% or a deterioration in the current liquidity position. This analysis represents an objective review of historical data and does not constitute personalized investment advice.
FAQ
What is the fundamental read on FICO?
Fair Isaac Corporation is judged through revenue growth of 12.03%, EPS growth of 27.04%, free-cash-flow growth of 16.63%, net margin of 34.05%, and ROIC of 59.42%.
Which FICO fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this FICO checkup refresh?
Its figures are as of September 4, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 12.03%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 27.04%.
- ROIC or balance-sheet flexibility weakening from ROIC of 59.42% and debt-to-equity of -1.37x.
The bottom line
Fair Isaac Corporation fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: FICO fundamentalsContinue with Fair Isaac Corporation's full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-07-29 · period 2026-06-30 · SEC EDGAR source
- “Dollar-Based Net Retention Rate for our Software segment was 109% as of June 30, 2026.”
- “For the periods presented, ACV Bookings related to estimates of future usage-based fees was approximately 20% of the total ACV Bookings amount on an annualized basis.”
- “The year-to-date period-over-period increase in other income, net of $3.7 million was primarily attributable to an increase in dividend income and realized gains on investments classified as trading securities in our deferred compensation plan.”
- “Key performance metrics for Software segment Annual Contract Value Bookings ("ACV Bookings") Management regards ACV Bookings as an important indicator of future revenues, but it is not comparable to, nor is it a substitute for, an analysis of our revenues and other U.S.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.