Fair Isaac reported on the latest quarterly results. $FICO (+1,63%)

08.11.24 06:35

Fair Isaac presented the quarterly figures for the most recent quarter - closing date 30.09.2024 - at the financial conference on 06.11.2024.

Earnings per share amounted to USD 5.54 compared to USD 4.09 in the same quarter of the previous year.

Sales increased by 16.44% compared to the previous year. Turnover most recently amounted to USD 453.8 million, compared to USD 389.7 million in the same period of the previous year.

EPS for the financial year was put at USD 20.78. In the previous year, USD 17.18 per share had been achieved.

Fair Isaac closed the past financial year with sales totaling USD 1.72 billion. This means that the company increased its turnover by 13.48 percent compared to the previous year, in which USD 1.51 billion was generated.

finanzen.net editorial team

https://siliconcanals.com/de/Fico-gewinnt-Silber-f%C3%BCr-Analytics-bei-den-deutschen-IT-Awards-2024/

Hellas Investment Community,

How do you deal with companies that convince you of their business model but run permanently?

Notable mentions:

$FICO (+1,63%)

$CTAS (+0,17%)

$MCO (+0,31%)

$SPGI (+0,02%)

$COST (-1,09%)

I've been watching all these companies for some time now and I'm seeing them run away from me.

Valuation-wise they are getting more and more expensive and were already extremely expensive at the time of first contact. Every time I analyze them, I decide not to buy them only to see them gain another 20% a few months later.

How do you approach such companies? How do you value them? How do you fight your FOMO here?

Good return and best regards from Vienna

Fair Isaac - Splendid profitability fuels record share price performance.

$FICO (+1,63%)

The US company, which is comparable to SCHUFA in Germany, has slightly raised its forecast. Even the very high valuation cannot stop the share from soaring.

The Fair Isaac share looks like a flagpole. Since the beginning of the year, it has shot up by 65 percent, compared to 121 percent a year ago. Investors are rewarding the positive business development and are betting that it will continue in an environment of possibly significantly falling US interest rates.

The company offers solutions for assessing the risks associated with loans to consumers and companies, i.e. credit scores. In the USA, the so-called FICO score is "the" score for creditworthiness, for example for mortgage loans.

The company also sells software that supports companies in the creation and management of balance sheets for analysis and reporting purposes, or banks in the areas of risk management, fraud prevention, building good customer relationships and compliance with government regulations.

Business is flourishing, as the figures published on July 31 show. In the third quarter of the 2023/24 fiscal year, which ended in June, turnover increased by 12 percent to 447.8 million dollars.

The scores business grew by 20% to 241.5 million dollars, accounting for 54% of Group revenue. The software segment also grew by 5% to 206.4 million dollars.

In terms of revenue distribution by region, 85% came from North and Latin America, 10% from the Europe, Middle East and Africa (EMEA) region and 5% from Asia-Pacific.

Adjusted earnings before interest and taxes (EBIT) at Group level rose by 10.8% to 233.0 million dollars. Although the margin fell slightly from 52.7% to 52.0%, this is still an excellent figure.

In addition, adjusted earnings per share rose by 10.4% to 6.25 dollars.

Free cash flow shot up by 69 percent to a record 205.7 million dollars.

Outlook raised

When presenting the figures, CEO Will Lansing expressed his satisfaction with the results and raised the forecast slightly.

Accordingly, turnover in the 2023/24 fiscal year ending in September is expected to reach 1.70 billion dollars instead of the previously planned 1.69 billion dollars.

Lansing raised its forecast for adjusted earnings per share to 23.16 dollars instead of the previously announced 22.80 dollars.

The CEO also announced a new, open-ended share buyback program of USD 1 billion and referred to the record cash flow of USD 205.7 million for the third quarter of 2023/24.

The company's CEO also expressed his conviction that possible significant interest rate cuts in the USA would boost business, particularly in the refinancing of mortgage loans

This is what the estimates look like

Analysts are forecasting a 13.1 percent increase in turnover to 1.71 billion dollars for the 2023/24 financial year. In 2024/25, revenue is expected to increase by 14.2 percent to 1.95 billion dollars.

In addition, adjusted EBIT is expected to increase by 15.4% to 883.7 million dollars in 2024/25, followed by a jump of 20% to 1.06 billion euros in 2024/25. The margin is thus expected to rise significantly to 51.6% first, followed by a jump to 54.3% in 2024/25.

What's next for the share

The share is on a record run. The market capitalization is 47.2 billion dollars. Including net debt of 1.9 billion dollars, the enterprise value (EV) is 49.1 billion dollars.

This corresponds to 46.3 times the EBIT predicted by analysts for 2024/25. In my opinion, this is an extremely high valuation, even taking into account the good sales growth and the sensational operating margin.

And the P/E ratio based on the 2024/25 estimates is a hefty 65.7.

Despite the very high valuation, however, I think the share's record run should continue - because many investors are probably betting that possible sharp interest rate cuts in the USA will further boost Fair Isaac's already flourishing business and thus put even more money in the company's pockets than it already has.

https://derivate.bnpparibas.com/service/aktienanalysen/fair-isaac--praechtige-profitabilitaet-heizt-rekordfahrt-der-aktie-an/

Companies that I find interesting but do not yet have in my portfolio and that have a 10-year average ROIC of over 10% and a 5-year average ROCE and ROIC of over 10%, $ANET, $MA (-0,34%) , $VRTX (-0,44%) , $RMS (+0,75%) , $PGHN (-0,02%) , $COLO B (+0,94%) , $ACN (-1,66%) , $MNST (-0,16%)
$FICO (+1,63%) , $MCO (+0,31%) , $KNIN (+0,44%) , $S&P Global, $ISRG (-0,89%)
$III (+0%) , $BKNG (-1,19%)
$HLAG (+1,67%) , $QCOM (+2,48%) , $CFR (+0,21%) and $IFX (-1,35%) . Already blatant companies

📣All these stocks hit new 52 WEEK HIGHS at some point today

📣All these stocks hit new 52 WEEK HIGHS at some point today

Alcon $ALC (+0,53%)

Applovin $APP (+5,4%)

Beigene $BGNE (+0,3%)

Boston Scientific $BSX (-0,88%)

British American Tobacco $BTI (-1,14%)

Carrier $CARR

$EBAY (+0,18%)

Fair Isaac $FICO (+1,63%)

$IBM (-0,87%)

NextEra $NEE (+1,64%)

ServiceNow $NOW

Natera $NTRA

Public Service $PEG (-0%)

Insulet $PODD (+3,29%)

Sharkninja $SN

Squarespace $SQSP

Stryker $SYK (+1,48%)

FICO platform wins "Business Intelligence Platform of the Year" award from Data Breakthrough

$FICO (+1,63%)

FICO, the global leader in analytics software, today announced that it has been named the winner of the " Business Intelligence-Plattform des Jahres " at the Data Breakthrough Awards. Data Breakthrough is an independent market research organization that recognizes the best companies, technologies and solutions in the global data technology market.

With the FICO platform, companies can improve decision-making processes, customer interactions and their risk management. By integrating artificial intelligence, data analytics, digital simulation and risk modeling, the platform enables smarter business decisions while avoiding costly mistakes. Companies can harness the power of AI and machine learning to analyze data, gain valuable insights and automate actions that meet their business objectives.

With its decision-centric approach, the FICO platform enables companies to design large-scale, personalized customer experiences, assess operational impact and reduce the risk of regulatory non-compliance. The platform's full auditability feature provides a further benefit, ensuring transparency and accountability by tracking decision details and their subsequent impact. The platform's customizability ensures seamless adaptation to a variety of mission-critical use cases. With the FICO platform, organizations can break down silos and empower employees to deliver customer-centric digital transformation, while giving organizations greater agility and collaboration.

The annual Data Breakthrough Awards is a premier awards program created to recognize the best innovators, leaders and visionaries in data technology around the world in a range of categories including DataOps, Data Analytics, AI, Business Intelligence, Data Storage and many more. 2024 marks the fifth annual Data Breakthrough Awards program, which has received more than 2,000 nominations from around the world.

"It is an honor to be recognized for the commitment and innovation FICO has invested in the FICO Platform to help companies worldwide build better customer relationships," said Nikhil Behl, Executive Vice President at FICO. "The FICO platform catalyzes and encourages an innovative mindset among our customers, enabling them to quickly launch hyper-personalized products, make real-time decisions and improve the customer experience at scale."

The FICO platform was ranked as one of the industry's best decisioning platforms in The Forrester Wave: AI Decisioning Platforms, Q2 2023 report. In addition, the FICO platform was recognized with the Platinum Award for Banking Innovation of the Year at the Future Digital Awards for Fintech & Payments 2023. In the Chartis Research RiskTech100 2024, FICO was named one of the top five risk and compliance technology providers for the second year in a row . FICO was also ranked first for innovation in the Chartis Research RiskTech100 2024 for the seventh consecutive year.

Learn more about the FICO platform at: https://www.fico.com/en/platform/data

https://www.wallstreet-online.de/nachricht/18125119-fico-platform-wins-data-breakthrough-s-business-intelligence-platform-of-the-year-award

We start in Singapore, first reports on FICO.

$FICO (+1,63%)

GXS Bank achieves remarkable onboarding efficiency with the FICO platform

FICO (NYSE: FICO):

Highlights:

• GXS Bank utilizes the FICO platform to make credit decisions in milliseconds and originate loans upon approval for the vast majority of customers in less than 3 minutes
• GXS Bank utilizes alternative data and the FICO platform's Intelligent Decisions capabilities to extend credit to applicants with little or no credit history
• Implementation of the FICO platform took only three months
• GXS Bank has won a FICO Decisions Award 2024 for Customer Onboarding & Management

GXS Bank (GXS) Singapore's first digital bank for retail and commercial customers, leverages the industry-leading capabilities of the FICO-Plattform, to optimize the onboarding process for GXS FlexiLoan, its personal loan product. This has resulted in an onboarding time of less than three minutes for the vast majority of approved GXS FlexiLoan applications.

GXS uses the FICO platform to automatically make credit decisions in milliseconds, executing complex policy rules that utilize traditional and alternative data to extend credit to a wider range of consumers without compromising the bank's credit risk appetite.

GXS leverages user eligibility data from its ecosystem partners Grab and Singtel to expand credit access to underserved users. Leveraging data from "super app" Grab, a dominant force in Southeast Asia comparable to Uber in America, and Singtel, a major regional telecoms company, provides valuable insights. This ecosystem data is then combined with information from traditional sources such as credit bureaus. By integrating these data sets, GXS improves the assessment of applicants and provides more accurate scores and personalized interest rates.

Thanks to this innovative approach, people who were previously overlooked by traditional banks, such as young professionals or entrepreneurs with fluctuating incomes, can now obtain loans.

"Digital banks are playing an important role in extending banking and credit opportunities to a large and underserved group of individuals and small businesses across Southeast Asia," said Vaman Sriraman, Group Chief Risk Officer at GXS Bank. "FICO has been an invaluable partner for us in our endeavor to drive financial inclusion in Singapore. The FICO platform allows us to leverage alternative data and expand our offering. The agile infrastructure allows us to iterate quickly while ensuring that robust risk controls are in place."

https://www.wallstreet-online.de/nachricht/18143747-gxs-bank-achieves-remarkable-onboarding-efficiency-using-fico-platform

Another long-runner joins the portfolio!