Last Updated: 16 Sep 2024
Executive Summary
FactSet Research Systems Inc. (FDS) is a leading provider of integrated financial information and analytical applications to the investment and corporate communities. The company has a strong track record of growth and profitability, and its shares have outperformed the broader market in recent years. FDS is currently trading at $445.36, which is below its 52-week high of $486.18. The stock is trading at a trailing PE of 33.56 and a forward PE of 25.84. Analysts have a mixed view on the stock, with 3 rating it a buy, 12 rating it a hold, 5 rating it a sell, and 1 rating it a strong sell. The consensus analyst target price is $435.92.
Company Overview
FactSet was founded in 1978 and is headquartered in Norwalk, Connecticut. The company provides a range of financial data and analytics products and services to investment professionals, including portfolio managers, analysts, and traders. FactSet's products and services are used by over 150,000 users at more than 5,000 financial institutions in over 100 countries.
The company's core products include:
FactSet Workstation: A desktop-based platform that provides access to a wide range of financial data and analytics.
FactSet Research Platform: A web-based platform that provides access to FactSet's research and analysis tools.
FactSet Mobile: A mobile app that provides access to FactSet's data and analytics on the go.
FactSet also offers a range of consulting and training services to help its clients get the most out of its products and services.
Fundamental Analysis
FactSet has a strong track record of growth and profitability. The company's revenue has grown at a compound annual growth rate (CAGR) of 10% over the past five years. Net income has grown at a CAGR of 12% over the same period. FactSet's profit margins are also strong, with a net profit margin of 23.6%.
The company's balance sheet is also strong. FactSet has a low level of debt and a high level of cash and equivalents. The company's current ratio is 1.5, which is well above the industry average of 1.0.
Technical Analysis
FactSet's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
The technical analysis suggests that FactSet's stock is likely to continue to decline in the short term. The stock is trading below its key moving averages and the RSI is oversold. However, the company's fundamentals are strong, and the stock could rebound if the market recovers.
Long Term Outlook
The long-term outlook for FactSet is positive. The company has a strong track record of growth and profitability, and its products and services are in high demand. The company is also well-positioned to benefit from the growing trend towards digitalization in the financial industry.
Analyst Recommendations
Analysts have a mixed view on FactSet's stock. The consensus analyst target price is $435.92, which is below the current price of $445.36. Three analysts rate the stock a buy, 12 rate it a hold, 5 rate it a sell, and 1 rates it a strong sell.
