How much are you willing to pay for perfection? $FICO Analysis
Posted: Jun 16, 2024
- Fair Issac Corporation (NYSE: FICO) has outperformed the market since its IPO in 1987 - A $10,000 investment in 1987 would be worth over $11 million today - FICO is a data analytics company - FICO is known for its FICO scores used by businesses in lending industry - 90% of largest lenders and 98.8% of total US loan dollars use FICO scores - FICO has high margins and revenue growth - FICO also offers B2B software solutions - FICO has not invested much in the business, but has bought back $3.2 billion in shares in the past 5 years - FICO has taken on debt to buy back shares, with interest rates between 4-6.674% - FICO's stock valuation is high but has strong business fundamentals - The question for investors is how much are they willing to pay for FICO's success.
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