FactSet Research Systems Stock To $289?

FactSet Research Systems (FDS) stock has jumped 16% during the past week, and is currently trading at $219.94. Our multi-factor assessment suggests that it may be time to buy more shares of FDS stock. We have, overall, a positive view of the stock, and a price of $289 may not be out of reach. We believe there is not much to fear in FDS stock given its overall Strong operating performance and financial condition. Taken together with its Low valuation, this makes the stock look Attractive.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $8.2 Bil in market cap, FactSet Research Systems provides integrated financial data and analytical applications delivering insights and workflow solutions for research, trading, content, and wealth management to investment professionals.

[1] Valuation Looks Low

This table highlights how FDS is valued vs broader market. For more details see: FDS Valuation Ratios

[2] Growth Is Moderate

• FactSet Research Systems has seen its top line grow at an average rate of 7.1% over the last 3 years
• Its revenues have grown 5.9% from $2.2 Bil to $2.4 Bil in the last 12 months
• Also, its quarterly revenues grew 6.9% to $608 Mil in the most recent quarter from $569 Mil a year ago.

This table highlights how FDS is growing vs broader market. For more details see: FDS Revenue Comparison

[3] Profitability Appears Very Strong

• FDS last 12 month operating income was $749 Mil representing operating margin of 31.7%
• With cash flow margin of 32.2%, it generated nearly $761 Mil in operating cash flow over this period
• For the same period, FDS generated nearly $600 Mil in net income, suggesting net margin of about 25.4%

This table highlights how FDS profitability vs broader market. For more details see: FDS Operating Income Comparison

[4] Financial Stability Looks Strong

• FDS Debt was $1.6 Bil at the end of the most recent quarter, while its current Market Cap is $8.2 Bil. This implies Debt-to-Equity Ratio of 18.8%
• FDS Cash (including cash equivalents) makes up $293 Mil of $4.2 Bil in total Assets. This yields a Cash-to-Assets Ratio of 6.9%

[5] Downturn Resilience Is Moderate

FDS saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• FDS stock fell 28.7% from a high of $488.85 on 29 December 2021 to $348.71 on 16 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 13 November 2024
• Since then, the stock increased to a high of $495.72 on 14 November 2024 , and currently trades at $219.94

 
2020 Covid Pandemic

• FDS stock fell 33.7% from a high of $308.66 on 19 February 2020 to $204.55 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 3 June 2020

 
2008 Global Financial Crisis

• FDS stock fell 54.9% from a high of $73.53 on 10 October 2007 to $33.18 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 16 November 2009

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