Financial statement analysis and common stock valuation

Common Stock Valuation Ratios

Relative valuation technique determine the value of Fair Isaac Corp. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Current Valuation Ratios
• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Analysis of Reportable Segments

Fair Isaac Corp. operates in 2 segments: Scores and Software.

• Segment Profit Margin
• Segment revenues
• Segment operating income

Cash Flow Statement

The cash flow statement provides information about Fair Isaac Corp. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Fair Isaac Corp. balance sheet.

Analysis of Liquidity Ratios

Measures the adequacy of Fair Isaac Corp. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about Fair Isaac Corp. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Fair Isaac Corp. balance sheet.

Income Statement
Quarterly Data

The income statement (statement of earnings) reports on the performance of Fair Isaac Corp., the result of its operating activities.

Analysis of Solvency Ratios
Quarterly Data

Examines Fair Isaac Corp. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Equity (including Operating Lease Liability)
• Debt to Capital
• Debt to Capital (including Operating Lease Liability)
• Debt to Assets
• Debt to Assets (including Operating Lease Liability)
• Financial Leverage
• Interest Coverage

Balance Sheet: Liabilities and Stockholders’ Equity

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Analysis of Profitability Ratios

Measures the income of Fair Isaac Corp. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Enterprise Value (EV)

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

• Current EV
• Historical EV

Analysis of Short-term (Operating) Activity Ratios

Evaluates revenues and output generated by the Fair Isaac Corp. assets. Operating performance ratios describe the relationship between the Fair Isaac Corp. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Receivable Collection Period
• Average Payables Payment Period

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by Fair Isaac Corp..