Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Fair Isaac Corp., FCFE calculation
US$ in thousands
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).
A steady increase in operating cash flows is observed over the analyzed six-year period, characterized by a general upward trajectory with a brief deviation in 2023. In contrast, Free Cash Flow to Equity (FCFE) exhibits significant volatility, characterized by pronounced peaks and a sharp contraction before returning to elevated levels in the final period.
- Operating Cash Flow Performance
- Net cash provided by operating activities grew from 260.35 million in 2019 to 632.96 million in 2024. This growth was largely consistent from 2019 through 2022, followed by a moderate decline of approximately 8% in 2023, and a strong recovery in 2024, where cash flow from operations increased by 34.7% year-over-year.
- FCFE Volatility and Trends
- FCFE demonstrates a more irregular pattern than operating cash flows. A substantial surge occurred between 2020 and 2022, with FCFE peaking at 1.095 billion in 2022. This peak was followed by a sharp decline of approximately 57% in 2023, bringing the value down to 469.68 million. A strong rebound followed in 2024, with FCFE increasing to 950.37 million.
- Divergence Between Operating Cash and FCFE
- A significant divergence is observed between operating cash flow and FCFE in 2021, 2022, and 2024, where FCFE substantially exceeded the cash provided by operating activities. This pattern indicates that during these periods, financing activities—such as net borrowing—contributed significantly to the cash available to equity holders. Conversely, in 2023, FCFE and operating cash flow converged, suggesting a period of minimal net borrowing or higher capital expenditures that neutralized financing inflows.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Price to FCFE Ratio, Current
Fair Isaac Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 24,003,656 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 950,374) |
| FCFE per share | 39.59 |
| Current share price (P) | 1,527.80 |
| Valuation Ratio | |
| P/FCFE | 38.59 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Accenture PLC | 9.18 |
| Adobe Inc. | 9.46 |
| AppLovin Corp. | 23.83 |
| Cadence Design Systems Inc. | 56.29 |
| Datadog Inc. | 342.69 |
| International Business Machines Corp. | 15.27 |
| Intuit Inc. | 8.56 |
| Microsoft Corp. | 62.60 |
| Oracle Corp. | 24.61 |
| Palantir Technologies Inc. | 229.37 |
| Palo Alto Networks Inc. | 76.43 |
| Salesforce Inc. | 10.25 |
| ServiceNow Inc. | 33.89 |
| Synopsys Inc. | 6.06 |
| Workday Inc. | 17.06 |
| P/FCFE, Sector | |
| Software & Services | 45.77 |
| P/FCFE, Industry | |
| Information Technology | 64.76 |
Based on: 10-K (reporting date: 2024-09-30).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Fair Isaac Corp., historical P/FCFE calculation, comparison to benchmarks
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 24,347,903 | 24,713,557 | 24,975,618 | 27,358,353 | 29,098,177 | 28,961,612 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 950,374) | 469,678) | 1,095,352) | 837,584) | 349,371) | 295,424) | |
| FCFE per share3 | 39.03 | 19.00 | 43.86 | 30.62 | 12.01 | 10.20 | |
| Share price1, 4 | 2,090.63 | 940.43 | 443.77 | 388.61 | 461.72 | 331.59 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 53.56 | 49.48 | 10.12 | 12.69 | 38.46 | 32.51 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Accenture PLC | 23.91 | 21.01 | 17.87 | 25.76 | 19.01 | — | |
| Adobe Inc. | 18.02 | 41.83 | 21.32 | 34.26 | 41.36 | — | |
| AppLovin Corp. | 45.36 | 23.30 | — | 22.51 | — | — | |
| Cadence Design Systems Inc. | 24.08 | 71.40 | 33.41 | 36.31 | — | — | |
| Datadog Inc. | 28.64 | 71.93 | 69.38 | 202.25 | — | — | |
| International Business Machines Corp. | 20.90 | 9.97 | 11.97 | 48.45 | — | — | |
| Intuit Inc. | 38.43 | 38.74 | 13.86 | 86.74 | — | — | |
| Microsoft Corp. | 42.11 | 43.32 | 36.73 | 42.54 | — | — | |
| Oracle Corp. | 48.38 | 15.47 | — | 8.36 | — | — | |
| Palantir Technologies Inc. | 256.11 | 74.28 | 96.89 | 198.12 | — | — | |
| Palo Alto Networks Inc. | 52.90 | 79.75 | 29.54 | 32.91 | — | — | |
| Salesforce Inc. | 38.33 | 31.06 | 16.56 | 49.52 | — | — | |
| ServiceNow Inc. | 61.82 | 58.19 | 44.44 | 64.54 | — | — | |
| Synopsys Inc. | 63.94 | 57.04 | 33.41 | 40.55 | 45.07 | — | |
| Workday Inc. | 36.59 | 19.79 | 49.17 | 40.57 | — | — | |
| P/FCFE, Sector | |||||||
| Software & Services | 39.55 | 32.87 | 31.24 | 34.11 | — | — | |
| P/FCFE, Industry | |||||||
| Information Technology | 36.66 | 33.12 | 26.68 | 27.39 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 950,374,000 ÷ 24,347,903 = 39.03
4 Closing price as at the filing date of Fair Isaac Corp. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 2,090.63 ÷ 39.03 = 53.56
6 Click competitor name to see calculations.
An analysis of the financial trajectory between September 2019 and September 2024 reveals a significant divergence between market valuation and the generation of free cash flow to equity (FCFE).
- Share Price Evolution
- A strong upward trajectory is evident, with the share price increasing from 331.59 in 2019 to 2,090.63 in 2024. The most aggressive growth occurred between 2022 and 2024, during which the share price experienced exponential appreciation, increasing by approximately 371% in that two-year window.
- FCFE per Share Performance
- Free cash flow per share exhibited considerable volatility. After rising from 10.20 in 2019 to a peak of 43.86 in 2022, a sharp contraction to 19.00 was recorded in 2023. Although a recovery to 39.03 occurred by September 2024, the cash flow remains below the 2022 high despite the massive increase in market price.
- P/FCFE Ratio Dynamics
- The valuation multiple underwent two distinct phases. From 2019 to 2022, the P/FCFE ratio compressed from 32.51 to a low of 10.12, as FCFE growth significantly outpaced share price gains. Subsequently, from 2022 to 2024, the ratio expanded sharply to 53.56. This expansion indicates a decoupling where the market price accelerated far beyond the growth of free cash flow, resulting in a substantially higher valuation premium by 2024 compared to any previous year in the period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?