Fair Isaac Corporation FICO

Name: FICO Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored March 14, 2026

Price at analysis: $1043.10

Crucible Score

67.0

B-

Quality × Value Composite

KQI — Quality

75.4

B+

Fundamental Quality Index

KVI — Value

56.7

Valuation Attractiveness Index

Crucible Verdict — FICO

Fair Isaac Corporation trades at a 14% discount to fair value despite strong fundamentals, with quality metrics (KQI 75.4) significantly outpacing value appeal (KVI 56.7). FICO's dominant credit scoring franchise drives solid financial quality (80) and growth prospects (77), though poor diversification (49) creates concentration risk. The valuation gap suggests the market underappreciates the durability of its data moat.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

80.3

Growth Profile

76.7

Moat Durability

77.4

Management Effectiveness

74.8

Diversification & Resilience

49.2

Market Position

74.0

Weakest dimension: Diversification & Resilience (49.2)

◆ KVI Value Dimensions

DCF Margin of Safety

60.5

FCF Yield & Cash Returns

44.8

Relative Valuation

61.8

Growth-Adjusted Value

54.3

Historical Valuation

68.8

Macro Context

46.9

◆ DCF Valuation Scenarios

Bear Case

$742.50

Base Case

$1185.00

Bull Case

$1780.00

Price at Analysis

$1043.10

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$742.50	7.0%	40.0%	11.2%
🟢 Base	$1185.00	11.0%	45.0%	10.5%
🟢 Bull	$1780.00	14.0%	49.0%	9.8%

Key Assumptions: FICO's revenue CAGR over the trailing 5 years is approximately 10.9% with operating margins expanding from 38.4% to 46.5%, reflecting strong pricing power in its Scores segment and growing software recurring revenue. WACC is derived using CAPM with a 5.5% ERP and 1.28 beta, yielding a base cost of equity of ~11.4%, blended with after-tax cost of debt (~5.2%) at market-value weights given significant leverage and negative book equity. Capex intensity is minimal at ~0.5-0.7% of revenue, and FCF conversion from EBITDA is exceptionally high, supporting premium valuations across scenarios.

◆ Financial Snapshot

Profitability

Gross Margin82.9%

Operating Margin47.5%

Net Margin31.9%

ROIC51.0%

ROE-30.7%

Balance Sheet

Balance SheetCR: 0.93

Cash ConversionFCF/EPS: 1.12x

Capital IntensityCapex/Rev: 0.4%

Altman Z-Score10.65 (Safe)

Piotroski F-Score7/9 (Good)

Growth

Revenue CAGR10.9% CAGR

Earnings CAGR13.6% CAGR

Growth ConsistencyCV: 0.45

Segment Breadth1/1 growing (100%)

Quarterly TrendRev∆, Margin↑, WC↓, Exp↓

Earnings CredibilityTends to Beat

◆ Analyst Consensus & Leadership

Leadership & Governance

CEOScott Zahn · 9 years

CEO Ownership3.0%

Compensation98% performance-based

Insider ActivitySelling

Capital AllocationROIC 51.0% vs WACC 3.4%

Earnings Beat Rate66% (15/22)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 14, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.