Buffett Brain · Research note
Score updated 26 Sept 2026
FICO· Technology
Fair Isaac
Fair Isaac's 53.2% ROIC and 84.2% gross margin showcase a strong moat, but a P/E of 33.8 suggests valuation concerns.
Buffett fit
Strong fit
Owner
100
Durability
96
Management
99
Price
12
Score updated 26 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of Fair Isaac, we'd focus on maintaining its strong of 53.2% and leveraging its .
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Fair Isaac's business model appears durable over the next decade, supported by a consistent 5-year profitability and no EPS declines.
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Management has effectively reduced share count by 4.16% annually and achieved a yield of 3.67%.
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With an yield of 3.06% and a of 33.8, the current valuation is stretched.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
6- 153.2% , top quintile in the technology sector.
- 284.2% , indicating strong .
- 350.4% , sector-leading.
- 418.48% EPS CAGR over 5 years, showing robust growth.
Concerns
5- 1 of 33.8 suggests high expectations are priced in.
- 2Net debt/EBITDA of 2.96, indicating risk.
- 3 yield of 3.06% is below desired threshold.
- 4Valuation multiples such as EV/ at 30.9 are high.
Price history
$661+64.9%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Fair Isaac Corporation generates revenue through its Scores and Software segments. The Scores segment offers scoring solutions for both businesses and consumers, while the Software segment provides decision management solutions. With $1.99B in revenue and a 50.4% , the business is capital-light and highly profitable. Unit economics are strong, supported by a 33.7% net margin.
How this analysis has moved
The call has held across 2 reviews.
Sep 27, 2026 → Oct 4, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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