1/28/2024 0 Comments Factset stock pro and consDespite an impeccable growth history of the underlying business, it cannot escape general market downturns. We can also see above that the share has always been subject to substantial price fluctuations. ![]() Currently, with a P/E ratio of almost 32, it has even entered the realm of overvaluation.įair value calculation FactSet, source: Based on the expected earnings until 2024, this results in a downside potential of 13 percent. However, with an average P/E ratio of 25 and a price/cash flow ratio of just under 19, the share has always been valued loftily. Source: High valuation and inherent business risksīelow (logarithmic chart), we see that the share price has moved relatively rigidly along its historically fair valuation in recent years. For the next few years, analysts expect a further increase in operating margin and net margin to just under 33 percent and 27 percent, respectively. The positive development of the operating margin and its increase by almost 80 basis points to 32.6 percent contributed to this. Profit-wise, adjusted EPS climbed by a respectable 7 percent in 2Q 2021. The number of users grew by 12 percent to 153,355. Overall, FactSet increased the number of customers by 7 percent to 6,103 in Q2. If we look at the number of customers, FactSet managed to retain 90 percent of the customers, improving one percentage point compared to the previous year's figure. ASV retention was also high at over 95 percent. In the first quarters of 2021, ASV and revenue grew by 5.5 and 5 percent, respectively. It seems that FactSet could meet analysts' expectations. Likewise, free cash flow per share is expected to increase from currently $9.46 to $12.66 in 2023. EPS is expected to climb to $12.18 by 2024, representing an increase of 26 percent. Growth below 10 percent in the coming yearsĪnalysts expect FactSet to further increase revenues to over USD 1.8 billion in the next few years. On the other hand, the sell-side accounted for 16 percent of revenues and grew by 4.6 percent last year. Last fiscal year, growth was 5.4 percent. ![]() Revenue from the buy-side was responsible for 84 percent of total revenues in 2020. The "buy-side" includes portfolio managers, hedge funds, analysts, insurers, and asset managers. The areas of application and the customers are correspondingly broad.Ĭlients are on both the buy-side and the sell-side. A vivid example is integrating portfolio analysis tools, market monitoring tools, or research into Microsoft Office, allowing analysts and asset managers to quickly incorporate data and reports into their calculations (Microsoft Excel), presentations (Microsoft PowerPoint), or correspondence with clients (via Microsoft Outlook). One result is the FactSet Workstation.Ĭustomers can also integrate FactSet's tools into third-party products. FactSet sells these tools and data packages as stand-alone modules that customers can assemble according to their needs. Customers can use the tools to measure their investments and combine them with their data. Within its "Analytics and Trading" business, FactSet sells other tools for portfolio analysis and risk management. In the "Research" business unit, FactSet provides its customers with tools and data for analyzing companies. Furthermore, the company sells its analysis tools and advanced services to customers outside the financial industry. Source: The business model appears to be relatively immune, which is quite interesting since FactSet is a supplier of financial data and financial information.īut on the other hand, this strong performance makes sense because FactSet benefits from a broad portfolio. The growth is nice and straight from bottom left to top right. I like here that economic crises such as those in 20 have had no meaningful impact. In line with revenue growth, earnings and free cash flow also showed positive development. Total ASV ("annual subscription value") growth in the past years. Furthermore, FactSet has grown organically at a constant rate over the last few years, so it hasn't had to rely on acquisitions and external growth. Since 1996, the company has increased its revenues from $44 million to $1.5 billion. ![]() Although the price has been consolidating for some time now, the shares are still not cheap.ĭata by YCharts Good but not excellent growth prospectsįactSet looks back on solid sales growth. The signs are good that the company will continue its excellent development in the coming years. Investors have also benefited from dividends, which FactSet has increased every year for the past 22 years. The share price increased by 1,400 percent since 2002. A good share price performance and a shareholder-friendly dividend distribution have established the FactSet ( NYSE: FDS) stock as a solid and reasonable investment choice.
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