FactSet Research Systems Inc (FDS, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth trajectory. With a current share price of $427.74 and a modest daily gain of 0.95%, despite a slight dip of -4.12% over the past three months, FactSet stands out in the financial data sector. The company's impressive GF Score of 98 out of 100 points towards significant potential for future outperformance.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects: financial strength, profitability, growth, GF Value, and momentum. These components are weighted differently to calculate a comprehensive score that has been backtested to correlate with long-term stock performance from 2006 to 2021. FactSet's high scores across these categories underscore its robust financial health and growth prospects.
Understanding FactSet Research Systems Inc's Business
FactSet Research Systems Inc, with a market cap of $16.3 billion and annual sales of $2.15 billion, is a pivotal player in providing financial data and portfolio analytics globally. The company integrates data from various sources into its platforms, enhancing portfolio monitoring and reporting capabilities. Notably, 82% of FactSet's annual subscription value comes from buy-side clients. Strategic acquisitions such as Portware in 2015 and BISAM in 2017 have further solidified its market position.
Financial Strength and Stability
FactSet's financial robustness is reflected in its Financial Strength Rank of 6/10. The company boasts an impressive Interest Coverage ratio of 10.32, indicating its ability to comfortably meet interest obligations. The Altman Z-Score of 6.24 further highlights its low risk of financial distress, complemented by a prudent Debt-to-Revenue ratio of 0.79.
Profitability and Growth Metrics
FactSet's Profitability Rank is exceptional at 10/10, supported by a consistent increase in its Operating Margin over the past five years, reaching 31.42% in 2023. The company's Growth Rank also stands at 10/10, with a notable 3-Year Revenue Growth Rate of 11.5%, outperforming 61.73% of its industry peers. This sustained growth is evident in its EBITDA growth, further affirming its expansion strategy.
Conclusion: FactSet's Position for Future Success
Considering FactSet Research Systems Inc's strong financial strength, exceptional profitability, and consistent growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for robust investment opportunities may find FactSet an attractive option, as indicated by its high GF Score and solid market fundamentals.
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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.
