FactSet Research Systems Inc (FDS, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial performance and strategic market positioning. With a current share price of $422.84 and a recent daily gain of 1.5%, coupled with a three-month change of 4.55%, FactSet Research Systems Inc is poised for substantial growth. A detailed analysis, supported by the GF Score, indicates a promising future for the company.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects. This system has proven effective in correlating with long-term stock performance from 2006 to 2021. FactSet Research Systems Inc boasts a GF Score of 96 out of 100, indicating a high potential for outperformance based on its ranks in financial strength (7/10), profitability (10/10), growth (10/10), GF Value (9/10), and momentum (5/10).
Understanding FactSet Research Systems Inc's Business
FactSet Research Systems Inc, with a market cap of $16.08 billion and annual sales of $2.18 billion, operates at a robust operating margin of 32.87%. The company is a leading provider of financial data and portfolio analytics to the global investment community, sourcing data from a variety of contributors. FactSet's primary clients include buy-side entities, which make up 82% of its annual subscription value. Strategic acquisitions such as Portware in 2015, BISAM in 2017, and CUSIP Global Services in 2022 have further enhanced its service offerings.
Financial Strength and Stability
FactSet Research Systems Inc's financial resilience is evident in its Financial Strength rating. An Interest Coverage ratio of 10.69 and an Altman Z-Score of 6.3 highlight its ability to manage debt and avoid financial distress effectively. The company's strategic debt management is reflected in its favorable Debt-to-Revenue ratio of 0.75.
Profitability and Growth Metrics
The Profitability Rank and Piotroski F-Score affirm FactSet Research Systems Inc's efficient operations and solid financial health. Additionally, the company's commitment to growth is demonstrated by a 3-Year Revenue Growth Rate of 11.5%, outperforming 61.14% of peers in the Capital Markets industry. This growth trajectory is supported by a consistent increase in EBITDA, with a three-year growth rate of 13.3%.
Conclusion: FactSet Research Systems Inc's Position for Future Success
Considering FactSet Research Systems Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the firm's unparalleled position for potential 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.
