Fair Isaac Gross Profit vs. Operating Margin
| FICO Stock | USD 2,354 28.40 1.19% |
Gross Profit | First Reported 1985-12-31 | Previous Quarter 359.3 M | Current Value 364.2 M | Quarterly Volatility 89.5 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.54 | 0.7973 |
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| Net Profit Margin | 0.31 | 0.2986 |
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| Operating Profit Margin | 0.45 | 0.4271 |
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| Pretax Profit Margin | 0.39 | 0.3738 |
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| Return On Assets | 0.31 | 0.2985 |
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For Fair Isaac profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fair Isaac to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fair Isaac utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fair Isaac's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fair Isaac over time as well as its relative position and ranking within its peers.
Fair |
Fair Isaac's Revenue Breakdown by Earning Segment
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Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Fair Isaac. If investors know Fair will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Fair Isaac listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.353 | Earnings Share 20.49 | Revenue Per Share 69.603 | Quarterly Revenue Growth 0.164 | Return On Assets 0.2785 |
The market value of Fair Isaac is measured differently than its book value, which is the value of Fair that is recorded on the company's balance sheet. Investors also form their own opinion of Fair Isaac's value that differs from its market value or its book value, called intrinsic value, which is Fair Isaac's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fair Isaac's market value can be influenced by many factors that don't directly affect Fair Isaac's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fair Isaac's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fair Isaac is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fair Isaac's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Fair Isaac Operating Margin vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Fair Isaac's current stock value. Our valuation model uses many indicators to compare Fair Isaac value to that of its competitors to determine the firm's financial worth. Fair Isaac is rated below average in gross profit category among its peers. It is one of the top stocks in operating margin category among its peers . The ratio of Gross Profit to Operating Margin for Fair Isaac is about 2,767,558,113 . At this time, Fair Isaac's Gross Profit is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Fair Isaac's earnings, one of the primary drivers of an investment's value.Fair Isaac's Earnings Breakdown by Geography
Fair Operating Margin vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Fair Isaac |
| = | 1.2 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Fair Isaac |
| = | 0.43 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Fair Operating Margin Comparison
Fair Isaac is currently under evaluation in operating margin category among its peers.
Fair Isaac Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Fair Isaac, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fair Isaac will eventually generate negative long term returns. The profitability progress is the general direction of Fair Isaac's change in net profit over the period of time. It can combine multiple indicators of Fair Isaac, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -91.6 M | -87 M | |
| Operating Income | 733.6 M | 770.3 M | |
| Income Before Tax | 642 M | 674.1 M | |
| Total Other Income Expense Net | -91.6 M | -87 M | |
| Net Income | 512.8 M | 538.5 M | |
| Income Tax Expense | 129.2 M | 135.7 M | |
| Net Income Applicable To Common Shares | 493.8 M | 518.5 M | |
| Net Income From Continuing Ops | 512.8 M | 538.5 M | |
| Non Operating Income Net Other | -2.5 M | -2.3 M | |
| Interest Income | 45.7 M | 33.6 M | |
| Net Interest Income | -105.6 M | -100.4 M | |
| Change To Netincome | 101.6 M | 58.5 M | |
| Net Income Per Share | 20.78 | 21.82 | |
| Income Quality | 1.23 | 1.84 | |
| Net Income Per E B T | 0.80 | 0.54 |
Fair Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Fair Isaac. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Fair Isaac position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Fair Isaac's important profitability drivers and their relationship over time.
Use Fair Isaac in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fair Isaac position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fair Isaac will appreciate offsetting losses from the drop in the long position's value.Fair Isaac Pair Trading
Fair Isaac Pair Trading Analysis
The ability to find closely correlated positions to Fair Isaac could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fair Isaac when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fair Isaac - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Fair Isaac to buy it.
The correlation of Fair Isaac is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fair Isaac moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fair Isaac moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Fair Isaac can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Fair Isaac position
In addition to having Fair Isaac in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Investing Opportunities. To learn how to invest in Fair Stock, please use our How to Invest in Fair Isaac guide.You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
To fully project Fair Isaac's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Fair Isaac at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Fair Isaac's income statement, its balance sheet, and the statement of cash flows.