FactSet Research Systems Inc (FDS) stock analysis

P/E below its 5-year median

FactSet Research Systems's P/E of 23.0 is below its own 5-year median of 33.8.

P/E below the industry

FactSet Research Systems's P/E of 23.0 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.

EV/EBITDA below its 5-year median

FactSet Research Systems's EV/EBITDA of 14.7 is below its 5-year median of 23.2.

P/B above the industry

FactSet Research Systems's price-to-book of 5.90 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.

Trading below fair value

The share price of $334.88 is below our fair value estimate of $426.35.

Margin of safety over 20%

The price is 21.5% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 6.6% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -10.6% over the last twelve months, against a 5-year average of 5.9% a year.

Growing slower than the industry

Revenue grew 6.7% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Guidance raised

FactSet Research Systems raised its Fiscal 2026 Organic ASV growth outlook on Jul 1, 2026.

Gross margin slipping

Gross margin was 50.6% over the last twelve months, against 52.7% a year earlier.

Return on equity over 15%

Return on equity was 25.5% over the last twelve months and averaged 30.1% over five years.

Return on capital over 10%

Return on invested capital was 18.2%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

FactSet Research Systems's return on equity of 25.5% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.

Earnings grew over 5 years

Net income grew 5.9% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 21.5% over the last twelve months, against a 5-year average of 23.1%.

Net margin above the industry

FactSet Research Systems's net margin of 21.5% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

High debt

Debt is 68.4% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 56.5% five years ago to 68.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 60.0% of total debt.

Interest well covered

Operating income covers interest expense 12.8 times.

Short-term assets don't cover short-term debts

Current assets are 0.60 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.25; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

FactSet Research Systems paid dividends worth 1.3% of the share price over the last twelve months.

Yield below Treasuries

The 1.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; FactSet Research Systems yields 1.3%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 30.8% of net income.

Covered by free cash flow

Dividends take 23.2% of free cash flow.