FactSet Research Systems Inc (FDS, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial position. Despite a slight daily decrease of 0.52% in its share price, currently at $407.82, FactSet Research Systems Inc has experienced a three-month decline of 12.28%. However, a detailed analysis supported by the GF Score indicates that FactSet Research Systems Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. FactSet Research Systems Inc boasts a GF Score of 97 out of 100, indicating a high potential for outperformance.
Understanding FactSet Research Systems Inc's Business
FactSet Research Systems Inc, with a market cap of $15.54 billion and annual sales of $2.15 billion, operates at a robust operating margin of 31.81%. The company aggregates and provides financial data and portfolio analytics to the global investment community, serving primarily buy-side clients who make up 82% of its annual subscription value. Notable acquisitions include Portware in 2015, BISAM in 2017, and CUSIP Global Services in 2022, enhancing its offerings in trade execution software and risk management.
Financial Strength Breakdown
FactSet Research Systems Inc's financial strength is evident in its Financial Strength Rank of 6/10. The company's Interest Coverage ratio stands at 10.32, significantly above the benchmark set by Benjamin Graham. Additionally, its Altman Z-Score of 6.1 and a Debt-to-Revenue ratio of 0.79 further affirm its financial robustness.
Profitability and Growth Metrics
The Profitability Rank of FactSet Research Systems Inc is impressive at 10/10. The company has demonstrated consistent growth in its operating margin over the past five years, reaching 31.42% in 2023. Its 3-Year Revenue Growth Rate of 11.5% and EBITDA growth rates further underscore its expanding operational capabilities.
Conclusion
Considering FactSet Research Systems Inc's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
