Fair Isaac

One of my favorite stocks is Fair Isaac (FIC). Although most people have never heard of this company, they live in dreaded fear of them. Have you wondered about your “credit score”? Fair Isaac is the company that keeps watch over you and your borrowing habits. The company’s FICO score is the dominant credit-rating formula used by lenders. If you want, you can find out your score at www.myfico.com.

Since Fair Isaac is so dominant in its industry, it can maintain a pretty high profit margin. About 15 cents of every sale makes its way to the bottom line. Fair Isaac said it expects to earning $1.83 a share for its fiscal year, which ends in September. That means that FIC is trading for about 21 times earnings.

I’m exactly sure how to categorize Fair Isaac. It’s not really a tech stock, nor is it financial services. The stock struggled last year, but seems to be back on track. The company has a market value of about $2.5 billion and it’s a member of the S&P 400 Mid-Cap Index.

Posted by on August 18th, 2005 at 2:57 pm


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