Fair Isaac: I Am Still Hold Rated As The Valuation Multiple Is Too High
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Fair Isaac Corporation (FICO) is maintained at a hold rating due to its high valuation multiple, despite strong growth in its Scores and Software segments. The company's Q4 revenue increased by 16.4% year-over-year, with Scores revenue growing by 27.4% and Software revenue by 5.4%. However, the high forward PE multiple of 70x makes a bullish stance challenging.
November 19, 2024 | 1:00 pm
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Fair Isaac Corporation's Q4 revenue grew significantly, but the high forward PE multiple of 70x leads to a hold rating despite strong fundamentals.
The article highlights Fair Isaac's strong revenue growth in Q4, particularly in the Scores and Software segments. However, the high forward PE multiple of 70x suggests that the stock may be overvalued, leading to a hold rating. This indicates that while the company's fundamentals are strong, the current stock price may not offer an attractive entry point for investors.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100