FACTSET RESEARCH SYSTEMS INC (FDS) - Comprehensive Stock Analysis & Investment Research
Deep dive into FACTSET RESEARCH SYSTEMS INC's business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
FACTSET RESEARCH SYSTEMS INC Investment Summary
When evaluating whether FACTSET RESEARCH SYSTEMS INC (FDS) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
FACTSET RESEARCH SYSTEMS INC (FDS) operates within the Technology sector, specifically in the Services-Computer Programming, Data Processing, Etc. industry. The company employs approximately 14,513 people. With a market capitalization of $11 billion, the company is a large-cap stock offering relative stability combined with growth potential.
Financial Performance Analysis
FACTSET RESEARCH SYSTEMS INC generates annual revenues of approximately $2 billion. The company demonstrates exceptional profitability with a net margin of 24.0%, placing it among the most efficient operators in its industry.
From a profitability standpoint, the company delivers an outstanding Return on Equity (ROE) of 38.2%, demonstrating excellent shareholder value creation and management effectiveness. The Return on Assets (ROA) stands at 18.5%, indicating efficient asset utilization.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 3.72x indicates excellent short-term liquidity, meaning the company can comfortably cover its near-term obligations. The debt-to-equity ratio of 0.66x indicates moderate leverage, typical for many established companies.
Cash Flow Generation
FACTSET RESEARCH SYSTEMS INC generates $467 million in annual free cash flow, providing financial flexibility for dividends, share buybacks, debt reduction, or strategic investments. Operating cash flow stands at $520 million, demonstrating the company's ability to generate cash from its core business operations. Year-over-year operating cash flow has changed by 18.4%, showing strong cash flow momentum.
Valuation Analysis
The P/E ratio of 18.4x represents a reasonable valuation that balances current earnings with growth expectations, falling within a typical range for established companies. The price-to-book ratio stands at 5.03x, reflecting significant intangible value and market expectations of future growth. For income-focused investors, the current dividend yield of 0.08% offers modest income, with the company likely retaining more earnings for growth.
AI-Powered Price Predictions
Investment Considerations
When determining whether FACTSET RESEARCH SYSTEMS INC is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a large-cap stock, FACTSET RESEARCH SYSTEMS INC typically offers more stability but potentially lower growth compared to smaller companies.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
FACTSET RESEARCH SYSTEMS INC (Stock Symbol: FDS) is a prominent company operating within the Technology sector, with a specific focus on the Services-Computer Programming, Data Processing, Etc. industry. The company's shares are publicly traded on the NYSE exchange.
Leadership & Workforce
The organization employs approximately 14,513 professionals worldwide, demonstrating a significant operational footprint and the capacity to support substantial business operations across multiple markets.
Market Classification
With a market capitalization of $11 billion, FACTSET RESEARCH SYSTEMS INC is classified as a large-cap stock. Large-cap companies are well-established industry leaders that typically offer investors relative stability combined with consistent returns. These companies often have diversified revenue streams, established competitive advantages, and the financial resources to weather economic downturns.
Sector & Industry Context
Operating within the Technology sector, FACTSET RESEARCH SYSTEMS INC is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy. The technology sector is known for rapid innovation, high growth potential, and competitive intensity. Companies in this sector must continuously invest in research and development to maintain their competitive edge.
Revenue & Growth Analysis
FACTSET RESEARCH SYSTEMS INC generates annual revenues of $2 billion , indicating a well-established business with proven market demand for its products or services. This revenue base supports sustainable operations and provides capacity for continued growth investments.
Profitability Analysis
The company achieves a 24.0% net profit margin, which represents exceptional profitability significantly above most industry averages. Such high margins typically indicate strong pricing power, operational efficiency, asset-light business models, or valuable intellectual property. Companies with margins this high often enjoy sustainable competitive advantages.
Operating margin is 34.3%, demonstrating excellent core business efficiency with well-controlled operating expenses relative to revenue generation.
Market Valuation
Current market capitalization stands at $11 billion . This large-cap valuation typically attracts institutional investors seeking stability and liquidity. Large-cap stocks generally exhibit lower volatility and often pay dividends, making them core portfolio holdings.
Return on Investment Metrics
Return on Equity (ROE) measures 38.2%, demonstrating exceptional efficiency in generating profits from shareholder equity. ROE at this level indicates excellent capital allocation and strong competitive positioning, making the company highly attractive to growth-focused investors.
Return on Assets (ROA) stands at 18.5%, representing exceptional asset efficiency typically seen in asset-light business models like software or consulting companies.
Return on Invested Capital (ROIC) measures 21.7%, indicating the company generates exceptional returns on the capital invested in its operations, a hallmark of companies with sustainable competitive advantages.
Cash Flow Generation
Free cash flow generation of $467 million annually represents healthy cash conversion that supports ongoing operations and provides capital for growth initiatives or shareholder returns.
Operating cash flow reaches $520 million , with year-over-year growth of 18.4%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
Strategic Market Position
FACTSET RESEARCH SYSTEMS INC strategically competes in the highly dynamic Services-Computer Programming, Data Processing, Etc. marketplace. As a large-cap market participant, the company has established significant competitive advantages and market presence. Large-cap companies typically benefit from brand recognition, operational scale, diverse revenue streams, and the financial resources to invest in research and development, marketing, and strategic acquisitions. This size category attracts substantial institutional ownership and analyst coverage.
Industry Competitive Landscape
FACTSET RESEARCH SYSTEMS INC operates within the fast-evolving technology sector where competitive dynamics are shaped by innovation cycles, platform economics, and network effects. Technology companies must continuously invest in R&D to maintain relevance, while also defending against disruption from startups and adjacent market entrants. Success in this sector often requires achieving critical scale or establishing defensible intellectual property positions.
Operational Efficiency
The company shows positive operational efficiency through free cash flow generation of $467 million annually , with year-over-year cash flow growth of 18.4%. Positive free cash flow indicates the business generates more cash than required for operations and capital investments, providing resources for growth initiatives or shareholder returns.
Asset Utilization Efficiency
Asset turnover ratio of 0.73x indicates moderate asset turnover common in capital-intensive industries such as utilities, real estate, or heavy manufacturing. Lower turnover in these sectors is expected due to the significant infrastructure required for operations.
Financial Strength & Leverage
Current ratio of 3.72 demonstrates strong short-term liquidity with current assets significantly exceeding current liabilities. This provides a substantial buffer for meeting near-term obligations and handling unexpected financial needs.