FICO - AI Stock Analysis

Analysis generated December 15, 2025

Fair Isaac Corporation (FICO) is a well-established company known for its data analytics solutions, primarily its credit scoring service. Founded in 1956, FICO has been pivotal in the financial services sector by providing tools and technologies to assess risk and creditworthiness. The company diversifies its services into software and data management solutions, serving a wide array of industries like finance, insurance, and healthcare.

Fundamental Analysis

FICO's revenue for the last quarter was $516M, representing a decrease of 3.85% compared to the previous quarter. This decline indicates a potential concern in maintaining short-term growth momentum. However, year-over-year comparison shows a 13.65% increase, suggesting positive long-term growth.

The net income for the last quarter stood at $155M, a decrease of 14.73% compared to the prior quarter. Despite this short-term decline, the year-over-year net income increase of 14.24% indicates strong annual performance.

EBITDA for the last quarter was $113M. This signifies a significant decrease of 58.84% compared to the prior quarter and a 44.67% decline compared to the same quarter last year. These numbers indicate potential issues in operational efficiency.

The current Price-to-Earnings (P/E) ratio is 69.44, relatively high, suggesting possible overvaluation and a bearish outlook. Additionally, recent insider selling activities further signal potential bearish sentiment from those within the company.

Technical Analysis

FICO's current stock price is $1,820.19. This shows a positive short-term trend with an increase of 4.53% from a month ago. However, the price has decreased by 16.14% over the past year, which could pose long-term concerns.

The current Simple Moving Average over 10 days (SMA10) is $1,804.24, higher than the previous SMA10 of $1,802.07. This trend indicates potential for upward movement in price.

The Relative Strength Index (RSI) is 23.7, suggesting that the stock is currently in an oversold condition, which could indicate a potential buying opportunity.

Alternative Data Analysis

In terms of job postings and employee sentiment, FICO has 115 open positions, an increase of 14% over recent months. This signals that the company is looking to grow, a promising sign.

FICO's business outlook among employees remains neutral, neither overly optimistic nor pessimistic. The company's website traffic, estimated at 210,000 visitors per month, has shown no significant change recently. On social media, FICO's Instagram followers have increased by 4% to 3,000, indicating growing public interest.

According to AltIndex’s AI score, which consolidates fundamental, technical, and alternative data, FICO has a score of 56, suggesting a 'hold' signal.

Conclusion

Overall, FICO displays a mixed set of indicators. The company has shown solid year-over-year growth in revenue and net income, although short-term declines and reduced EBITDA are points of concern. The high P/E ratio and insider selling hint at potential overvaluation and bearish sentiment. Technically, the stock shows short-term optimism with bullish trends but has underperformed over the year. Alternative data indicates a stable company with growth aspirations.

Considering all these factors, a generic recommendation would be to 'hold' the stock. The company has strong fundamentals and potential upside based on short-term trends, but the high P/E ratio and declining EBITDA warrant a cautious approach.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.