It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad.
If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Fair Isaac (NYSE:FICO). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.
How Fast Is Fair Isaac Growing?
If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. That makes EPS growth an attractive quality for any company. It certainly is nice to see that Fair Isaac has managed to grow EPS by 27% per year over three years. This has no doubt fuelled the optimism that sees the stock trading on a high multiple of earnings.
It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. The good news is that Fair Isaac is growing revenues, and EBIT margins improved by 2.7 percentage points to 43%, over the last year. Both of which are great metrics to check off for potential growth.
In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image.
NYSE:FICO Earnings and Revenue History May 4th 2024
You don't drive with your eyes on the rear-view mirror, so you might be more interested in this free report showing analyst forecasts for Fair Isaac's future profits.
Are Fair Isaac Insiders Aligned With All Shareholders?
Owing to the size of Fair Isaac, we wouldn't expect insiders to hold a significant proportion of the company. But we do take comfort from the fact that they are investors in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$785m. Holders should find this level of insider commitment quite encouraging, since it would ensure that the leaders of the company would also experience their success, or failure, with the stock.
Does Fair Isaac Deserve A Spot On Your Watchlist?
You can't deny that Fair Isaac has grown its earnings per share at a very impressive rate. That's attractive. Further, the high level of insider ownership is impressive and suggests that the management appreciates the EPS growth and has faith in Fair Isaac's continuing strength. On the balance of its merits, solid EPS growth and company insiders who are aligned with the shareholders would indicate a business that is worthy of further research. We don't want to rain on the parade too much, but we did also find 2 warning signs for Fair Isaac that you need to be mindful of.
Although Fair Isaac certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with insider buying, then check out this handpicked selection of companies that not only boast of strong growth but have also seen recent insider buying..
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
对于许多投资者来说,尤其是那些没有经验的投资者,即使这些公司处于亏损状态,也会购买这些公司的股票,这是很常见的。但现实是,当一家公司每年亏损足够长的时间时,其投资者通常会承担亏损的份额。亏损公司可以像资本海绵一样行事,因此投资者应谨慎行事,不要浪费好钱。
如果这种公司不是你的风格,你喜欢那些创造收入甚至赚取利润的公司,那么你很可能会对Fair Isaac(纽约证券交易所代码:FICO)感兴趣。尽管利润不是投资时应考虑的唯一指标,但值得表彰能够持续生产利润的企业。
Fair Isaac 的成长速度有多快?
如果你认为市场的效率甚至含糊不清,那么从长远来看,你预计公司的股价将遵循其每股收益(EPS)的结果。这使得每股收益的增长对任何公司来说都是一种有吸引力的品质。很高兴看到Fair Isaac在三年内设法将每股收益增长27%。毫无疑问,这激发了人们对股票收益倍数较高的乐观情绪。
查看利息和税前收益(EBIT)利润率以及收入增长通常会很有帮助,这样可以重新了解公司的增长质量。好消息是,与去年相比,Fair Isaac的收入正在增长,息税前利润率提高了2.7个百分点至43%。这两个指标都是衡量潜在增长的好指标。
在下图中,您可以看到随着时间的推移,该公司的收益和收入是如何增长的。要获得更详细的细节,请点击图片。
纽约证券交易所:FICO收益和收入历史记录 2024年5月4日
你开车时不要注视后视镜,因此你可能会对这份免费报告更感兴趣,该报告显示了分析师对费尔·艾萨克未来利润的预测。
Fair Isaac 内部人士是否与所有股东保持一致?
由于Fair Isaac的规模,我们预计内部人士不会持有该公司的很大一部分股份。但是,他们是公司的投资者,这确实令我们感到欣慰。事实上,他们有大量财富投资于此,目前价值7.85亿美元。持有人应该会发现这种程度的内部承诺相当令人鼓舞,因为这将确保公司的领导者也能在股票上经历成功或失败。
Fair Isaac 值得在你的关注名单上占有一席之地吗?
你不能否认Fair Isaac的每股收益以非常惊人的速度增长。这很有吸引力。此外,高水平的内部所有权令人印象深刻,这表明管理层对每股收益的增长表示赞赏,并对费尔·艾萨克的持续实力充满信心。从优点来看,稳健的每股收益增长以及与股东保持一致的公司内部人士将表明该业务值得进一步研究。我们不想在游行队伍中下太多雨,但我们也确实发现了 Fair Isaac 的 2 个警告标志,你需要注意。
尽管Fair Isaac看起来确实不错,但如果内部人士买入股票,它可能会吸引更多的投资者。如果你想看看有内幕买入的公司,那就看看这些精心挑选的公司,这些公司不仅增长强劲,而且最近也出现了内幕买盘。
请注意,本文中讨论的内幕交易是指相关司法管辖区内应报告的交易。
对这篇文章有反馈吗?对内容感到担忧吗?请直接联系我们。或者,也可以发送电子邮件至编辑团队 (at) simplywallst.com。
Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。