Factset Research Systems Inc

FDS

Services-Computer Programming, Data Processing, Etc.

Mkt Cap

$16.25B

PE

33.20

Debt

$1.5B

Cash

$381.7M

EV

$17.36B

FCF

$609.4M

Market Cap

$16.25B

P/E Ratio

33.20

Debt

$1.5B

Cash

$381.7M

EV

$17.36B

FCF

$609.4M

Charts data: {"Earnings":[{"time":"2014-08-30","value":211543000},{"time":"2015-08-30","value":241051000},{"time":"2016-08-30","value":338815000},{"time":"2017-08-30","value":258259000},{"time":"2018-08-30","value":267085000},{"time":"2019-08-30","value":352790000},{"time":"2020-08-30","value":372938000},{"time":"2021-08-30","value":399590000},{"time":"2022-08-30","value":396917000},{"time":"2023-08-30","value":468173000}],"Sales":[{"time":"2014-08-30","value":920335000},{"time":"2015-08-30","value":1006768000},{"time":"2016-08-30","value":1127092000},{"time":"2017-08-30","value":1221179000},{"time":"2018-08-30","value":1350145000},{"time":"2019-08-30","value":1435351000},{"time":"2020-08-30","value":1494111000},{"time":"2021-08-30","value":1591445000},{"time":"2022-08-30","value":1843892000},{"time":"2023-08-30","value":2085508000}],"Net Margins":[{"time":"2014-08-30","value":0.22985434651512765},{"time":"2015-08-30","value":0.23943053414490728},{"time":"2016-08-30","value":0.300609888101415},{"time":"2017-08-30","value":0.2114833288158411},{"time":"2018-08-30","value":0.19781949346181335},{"time":"2019-08-30","value":0.24578657067156395},{"time":"2020-08-30","value":0.24960528367704943},{"time":"2021-08-30","value":0.25108627693699753},{"time":"2022-08-30","value":0.21526043824692553},{"time":"2023-08-30","value":0.22448870970526125}],"Assets":[{"time":"2014-08-30","value":663212000},{"time":"2015-08-30","value":736671000},{"time":"2016-08-30","value":1019161000},{"time":"2017-08-30","value":1413315000},{"time":"2018-08-30","value":1419448000},{"time":"2019-08-30","value":1560130000},{"time":"2020-08-30","value":2083388000},{"time":"2021-08-30","value":2224940000},{"time":"2022-08-30","value":4014305000},{"time":"2023-08-30","value":3962922000}],"Stockholders Equity":[{"time":"2014-08-30","value":511082000},{"time":"2015-08-30","value":531584000},{"time":"2016-08-30","value":517381000},{"time":"2017-08-30","value":559691000},{"time":"2018-08-30","value":525900000},{"time":"2019-08-30","value":672256000},{"time":"2020-08-30","value":896375000},{"time":"2021-08-30","value":1016353000},{"time":"2022-08-30","value":1331408000},{"time":"2023-08-30","value":1619930000}],"ROE":[{"time":"2014-08-30","value":0.4139120532517287},{"time":"2015-08-30","value":0.4534579671321936},{"time":"2016-08-30","value":0.6548655632889495},{"time":"2017-08-30","value":0.46143139696725516},{"time":"2018-08-30","value":0.5078627115421183},{"time":"2019-08-30","value":0.5247852008758568},{"time":"2020-08-30","value":0.4160513178078371},{"time":"2021-08-30","value":0.3931606439888503},{"time":"2022-08-30","value":0.2981182327280593},{"time":"2023-08-30","value":0.28900816701956256}],"ROA":[{"time":"2014-08-30","value":0.4594443405728485},{"time":"2015-08-30","value":0.45554935649699796},{"time":"2016-08-30","value":0.45121133952339226},{"time":"2017-08-30","value":0.2495636146223595},{"time":"2018-08-30","value":0.25907113187661684},{"time":"2019-08-30","value":0.2831590957163826},{"time":"2020-08-30","value":0.21121077782918976},{"time":"2021-08-30","value":0.2130578802125001},{"time":"2022-08-30","value":0.11844690425864501},{"time":"2023-08-30","value":0.1587735009672156}]}

FactSet Research Systems Inc., a financial data and analytics company, provides integrated financial information and analytical applications to the investment community in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company delivers insight and information through the workflow solutions of research, analytics and trading, content and technology solutions, and wealth. It serves portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial services entities. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.

Sector

10-K
8/31/23
10-Q
5/31/23
10-Q
2/28/23
10-Q
11/30/22
10-K
8/31/22
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5/31/22
10-Q
2/28/22
10-Q
11/30/21
10-K
8/31/21
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5/31/21
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2/28/21
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11/30/20
10-K
8/31/20
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5/31/20
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2/29/20
10-Q
11/30/19
10-K
8/31/19
10-Q
5/31/19
10-Q
2/28/19
10-Q
11/30/18
10-K
8/31/18
10-Q
5/31/18
10-Q
2/28/18

DCF

Discounted Cash Flow Valuation of Factset Research Systems Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$609.4M	$676.2M	$745.9M	$817.7M	$891.1M	$965.1M	$1.039B	$1.112B	$1.182B	$1.249B	$1.311B	$13.11B
DCF		$588M	$564M	$537.7M	$509.5M	$479.8M	$449.2M	$417.9M	$386.3M	$355M	$324.1M	$3.241B
Value	$7.852B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 7.9%

Earnings Stability 78%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	08-2015	08-2016	08-2017	08-2018	08-2019	08-2020	08-2021	08-2022	08-2023	TTM
Net Margin	24%	30%	21%	20%	25%	25%	25%	22%	22%	23%
ROA	46%	45%	25%	26%	28%	21%	21%	12%	16%	17%
ROE	45%	65%	46%	51%	52%	42%	39%	30%	29%	27%

What is the average Net Margin?

The average Net Margin over the past 5 years is +23.07%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.12%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +20.73%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -2.84%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +40.48%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -5.13%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	08-2015	08-2016	08-2017	08-2018	08-2019	08-2020	08-2021	08-2022	08-2023	TTM
Debt FCF	0.12	1.06	2.03	1.63	1.56	1.34	1.16	4.11	2.78	2.46
Debt Equity	0.07	0.58	1.03	1.09	0.85	0.64	0.57	1.50	1.00	0.83
MIN
Graham Stability	-	-	98%	96%	100%	100%	100%	100%	100%	96%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.46.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.38.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.96.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	08-2016	08-2018	08-2020	08-2022	Trend
Revenue	9.2%	9.1%	12%	13%	0.27%
Net Income	4.7%	12%	7.9%	18%	-0.73%
Stockholders Equity	18%	25%	22%	22%	3.7%
FCF	11%	11%	11%	20%	0.7%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +9.09%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.27%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +11.88%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -0.73%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +25.23%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +3.69%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +10.68%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +0.7%.