FactSet Research Systems Inc: A Deep Dive into Financial Metrics and Competitive Strengths
FactSet Research Systems Inc (NYSE:FDS) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $431.35, FactSet Research Systems Inc has witnessed a decline of 2.07% over a period, marked against a three-month change of 12.98%. A thorough analysis, underlined by the GuruFocus Score Rating, suggests that FactSet Research Systems Inc is well-positioned for substantial growth in the near future.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
FactSet Research Systems Inc has been assigned the following ranks:
1. Financial strength rank: 6/10
2. Profitability rank: 10/10
3. Growth rank: 10/10
4. GF Value rank: 6/10
5. Momentum rank: 7/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. GuruFocus assigned FactSet Research Systems Inc the GF Score of 96 out of 100, which signals the highest outperformance potential.
FactSet Research Systems Inc: A Snapshot
FactSet Research Systems Inc, with a market cap of $16.45 billion, provides financial data and portfolio analytics to the global investment community. The company aggregates data from third-party data suppliers, news sources, exchanges, brokerages, and contributors into its workstations. In addition, it provides essential portfolio analytics that companies use to monitor portfolios and address reporting requirements. Buy-side clients account for 83% of FactSet's annual subscription value. The company has made strategic acquisitions over the years to bolster its offerings and expand its reach.
Financial Strength Breakdown
According to the Financial Strength rating, FactSet Research Systems Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The Interest Coverage ratio for FactSet Research Systems Inc stands impressively at 12.01, underscoring its strong capability to cover its interest obligations. With an Altman Z-Score of 6.03, FactSet Research Systems Inc exhibits a strong defense against financial distress, highlighting its robust financial stability. With a favorable Debt-to-Revenue ratio of 0.93, FactSet Research Systems Inc's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows FactSet Research Systems Inc's impressive standing among its peers in generating profit. FactSet Research Systems Inc's strong Predictability Rank of 5.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, FactSet Research Systems Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 8.8%, which outperforms better than 53.38% of 680 companies in the Capital Markets industry. Moreover, FactSet Research Systems Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 6.6, and the rate over the past five years is 9.7. This trend accentuates the company's continued capability to drive growth.
Conclusion
Given the company's financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights FactSet Research Systems Inc's unparalleled position for potential outperformance. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article first appeared on GuruFocus.
