# Fair Isaac Corporation (FICO) — Stock CV

Fair Isaac Corporation is a $14.4B technology company. Revenue grew 24.1% over the last year, it keeps 34¢ of every dollar of sales as profit, and its net debt equals ~2.5 years of free cash flow. It trades at 17.7× earnings — near the lowest of its own history.

> Founded in 1956, Fair Isaac Corporation is a leading applied analytics company. Fair Isaac is primarily known for its FICO credit scores, which is a widely used industry benchmark to determine the creditworthiness of an individual consumer.

## Identity

- **Ticker**: FICO
- **Sector**: Technology
- **Industry**: Services-Business Services, Nec
- **Headquarters**: BOZEMAN, MT
- **Employees**: 3 876
- **Website**: https://www.fico.com
- **Market cap**: $14.4B
- **Last price**: $667.58
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $2.39B
- **Net income**: $815M
- **Free cash flow**: $996M
- **Net debt**: $2.52B
- **P/E**: 17.7
- **Revenue growth (YoY)**: 24.1%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 69 |
| Growth | 77 |
| Profitability | 100 |
| Health | 55 |
| Quality | 84 |
| Moat | 100 |

## Qualifications (beginner checklist) — 10 of 10 passed

- [x] Revenue growing — +24.1% YoY
- [x] Profitable — $815M TTM
- [x] Profit growing — +23.3% YoY
- [x] Generates cash — $996M TTM
- [x] Debt under control — ~2.5y of cash flow to repay
- [x] Established company — $14.4B market cap
- [x] Not printing shares — -18.9% shares over ~5y
- [x] Proven track record — 9/9 profitable years
- [x] Financially stable — Altman Z 7.7 — safe
- [x] Valuation not extreme — P/E 17.7

## Experience (career milestones)

- **FY2025** — Best year on record: $652M net income
- **FY2018** — Revenue crossed $1B: $1.03B for the year
- **FY2016** — Profitable every year on record: 9 consecutive profitable years in our data
- **FY2016** — Positive free cash flow every year since: 9-year streak
- **2016** — It opened an office in Bozeman, Montana, which later became its headquarters
- **2013** — Lenders purchased more than 10 billion FICO scores and about 30 million American consumers accessed their…
- **1995** — Fannie Mae and Freddie Mac first began using FICO scores to help determine which American consumers qualified for…
- **1989** — The company debuted its first general-purpose FICO score in 1989
- **1987** — FICO went public in July 1987 and is traded on the New York Stock Exchange
- **1956** — FICO was founded in 1956 as Fair, Isaac and Company by engineer William R

## Strengths

- High gross margin (85.1%)
- Strongly profitable — 34.1% net margin
- Revenue growing 24.1% year over year
- Strong cash conversion — FCF is 41.6% of revenue
- Interest covered 7.0× by operating earnings

## Watch-outs

- Net debt would take ~5.4 years of free cash flow to repay

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $1.32B | $392M | $416M |
| FY2022 | $1.38B | $374M | $503M |
| FY2023 | $1.51B | $429M | $465M |
| FY2024 | $1.72B | $513M | $624M |
| FY2025 | $1.99B | $652M | $770M |

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Source: https://stockcv.com/FICO — derived from company filings; may be delayed or incomplete. Information, not investment advice.