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FICO - AI Stock Analysis

Analysis generated May 21, 2025

FICO, officially known as Fair Isaac Corporation, is a prominent software company best known for its credit scoring services. Founded in 1956, FICO has become a pivotal player in the financial technology landscape, providing analytics software and tools that help businesses make better decisions based on data. Their offerings extend beyond just credit scoring to encompass decision management systems, predictive analytics, and data management solutions. With a well-established reputation and a broad client base, FICO is a critical entity within the financial services industry.

Fundamental Analysis

FICO's financial health appears strong when examining its most recent metrics. The revenue for the last quarter was $499M, marking an increase of 13.36% compared to the previous quarter, and a 14.97% increase compared to the same quarter last year. This consistent year-over-year growth is a positive indicator of the company's ability to scale its operations effectively and capture more market share.

Net income for the last quarter stood at $163M, which represents a 6.61% increase from the prior quarter and a substantial 25.28% surge compared to the same quarter last year. This growth in net income underscores the company's improving profitability.

The company's EBITDA for the last quarter was $246M, reflecting a 36.83% increase from the preceding quarter and a 21.50% increase year-over-year. Strong EBITDA growth is a sign of robust operational efficiency and profitability.

However, the current P/E ratio is 87.52, which could be a cause for concern. This high P/E ratio might indicate that the stock is potentially overvalued, suggesting a bearish outlook. Additionally, recent insider selling of company stock could be another bearish signal, indicating that those closest to the company might expect limited upside.

Technical Analysis

As of today, FICO's stock price is $1,707.94. This represents a 5.95% decrease from a month ago but an increase of 24.97% compared to a year ago, highlighting a long-term positive trend but short-term concerns. The stock's trend is currently bearish.

The current Simple Moving Average (SMA10) is $2,111.90, which is lower than the previous SMA10 of $2,149.93. This downward movement suggests a potential negative trend in the stock's price movement. The Relative Strength Index (RSI) is at 46.1, indicating a neutral condition. Overall, the technical indicators suggest caution in the immediate term.

Alternative Data Analysis

Looking at various alternative data metrics, FICO seems to maintain a promising outlook. The company currently has 116 open positions according to job boards, up by 6% in the last couple of months, signaling intentions to grow and expand. Employee sentiment is notably positive, with an estimated 82% of employees expressing a positive outlook on the company's future. This high morale can be a positive indicator of internal stability and forward momentum.

In terms of customer acquisition, FICO's web traffic has surged, with around 180,000 visitors estimated for their webpage, up by 7% recently. This uptick in web traffic is a bullish trend, potentially indicating rising customer interest and engagement. On social media, FICO's Instagram following has grown to 2,700, an impressive increase of 120% in the past few months, reflecting heightened public interest.

Lastly, AltIndex's AI score for FICO stands at 63, categorizing it as a buy signal. This predictive score, derived from a combination of fundamental, technical, and alternative data, suggests a favorable outlook for FICO's stock performance.

Conclusion

Based on the comprehensive analysis, FICO demonstrates several positive financial and operational metrics, including robust revenue, net income, and EBITDA growth. Despite these strong fundamentals, the high P/E ratio and recent insider selling may suggest caution. The technical indicators display a bearish short-term trend, although the stock has shown long-term appreciated value. On the alternative data front, FICO exhibits promising signs of expansion and increased customer and public interest. Given this mixed yet predominantly positive profile, a conservative recommendation might be to consider FICO's stock as a long-term hold or buy, contingent on an individual investor's appetite for potential short-term volatility and long-term growth opportunities.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.