2024-01-31 07:52:04 ET
Summary
- FICO is a leading data analytics company that provides credit scoring reports to help lenders assess borrowers' creditworthiness.
- The company's stock has been a monster, returning 87x since its IPO as its credit scores are basically a license to print money.
- However, even the best companies can get overvalued. I would not recommend investors buy FICO at 19x Fwd EV/Sales.
- Instead, current shareholders should consider taking profits after a great run.
Every so often, I come across a great company that I kick myself for not finding sooner. I believe Fair Isaac Corporation (FICO) is such a company. FICO's main business is providing credit scoring reports to help lenders assess the creditworthiness of borrowers. It is used in almost all major purchase transactions, from mortgages to auto loans.
FICO's near ubiquity in the modern financial economy has helped propel the stock to an 87x return since it listed on the NYSE in 1996....
Read the full article on Seeking Alpha
For further details see:
Fair Isaac Corporation: Great Company, Bad Valuation