Stock Analysis on Net

Fair Isaac Corp. (NYSE:FICO)

$24.99

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

Fair Isaac Corp., ROE, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).

1 US$ in thousands


The financial data reveals significant fluctuations and notable trends in key profitability and equity measures over the periods analyzed.

Net Income
The net income demonstrates an overall upward trend from 2005 through 2024, starting at approximately $134.5 million and rising significantly to over $512 million by 2024. However, this pattern includes periods of volatility: a decline from 2005 to 2009 is followed by gradual recovery and more rapid growth beginning around 2015. The increase in net income post-2015 is particularly strong, with a substantial jump observed between 2019 and 2020, continuing a steep rise through 2024.
Stockholders’ Equity
Stockholders’ equity shows a contrasting trajectory, holding relatively stable with some fluctuations from 2005 to 2016, generally ranging between approximately $426 million and $805 million. However, beginning in 2017, equity turns sharply negative, plunging to a deficit position that deepens markedly through 2024. The decline is abrupt and severe, shifting from positive equity to a deficit peaking near -$963 million in 2024. This suggests significant reductions in book value or accumulation of losses/liabilities affecting shareholders’ equity despite rising earnings.
Return on Equity (ROE)
ROE exhibits considerable variability. Early years show moderate levels between roughly 10% and 20%. From 2013 onward, there is a pronounced increase, with ROE spiking to an exceptionally high 54% by 2018 and further peaking around 71% in 2020. Data for ROE is unavailable for the last few years, but the sharp rises occurring before the missing data highlight improving profitability relative to equity before equity turned negative. The rising ROE coupled with negative equity after 2017 could indicate financial leverage intensification or accounting impacts on equity value.

In summary, the company has experienced substantial growth in net income over the long term, especially in recent years. Conversely, stockholders’ equity has deteriorated drastically since 2017, resulting in a large deficit by 2024. The ROE trend shows increasing efficiency or profitability relative to equity until the point where equity itself becomes negative and ROE data is no longer reported. The divergence between rising income and falling equity suggests underlying changes in financial structure or accounting that merit further investigation to assess financial stability and risk exposure.


Comparison to Competitors

Fair Isaac Corp., ROE, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).


Comparison to Sector (Software & Services)


Comparison to Industry (Information Technology)