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Fair Isaac (MEX:FICO1) Earnings Yield (Joel Greenblatt) % : 1.51% (As of Sep. 2024)


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What is Fair Isaac Earnings Yield (Joel Greenblatt) %?

Fair Isaac's Enterprise Value for the quarter that ended in Sep. 2024 was MXN877,103 Mil. Fair Isaac's EBIT for the trailing twelve months (TTM) ended in Sep. 2024 was MXN13,420 Mil. Fair Isaac's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2024 was 1.51%.

The historical rank and industry rank for Fair Isaac's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

MEX:FICO1' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.22   Med: 3.04   Max: 5.72
Current: 1.36

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Fair Isaac was 5.72%. The lowest was 1.22%. And the median was 3.04%.

MEX:FICO1's Earnings Yield (Joel Greenblatt) % is ranked better than
50.25% of 2856 companies
in the Software industry
Industry Median: 1.29 vs MEX:FICO1: 1.36

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Fair Isaac's Forward Rate of Return (Yacktman) % for the quarter that ended in Sep. 2024 was 20.89%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Fair Isaac Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Fair Isaac's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Fair Isaac Earnings Yield (Joel Greenblatt) % Chart

Fair Isaac Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.28 4.24 4.45 2.79 1.51

Fair Isaac Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.79 2.15 2.13 1.85 1.51

Competitive Comparison of Fair Isaac's Earnings Yield (Joel Greenblatt) %

For the Software - Application subindustry, Fair Isaac's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Fair Isaac's Earnings Yield (Joel Greenblatt) % Distribution in the Software Industry

For the Software industry and Technology sector, Fair Isaac's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Fair Isaac's Earnings Yield (Joel Greenblatt) % falls into.



Fair Isaac Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Fair Isaacs Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Sep. 2024 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=14721.709/877103.428
=1.68 %

Fair Isaac's EBIT for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN13,420 Mil.



Fair Isaac  (MEX:FICO1) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Fair Isaac Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Fair Isaac's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Fair Isaac Business Description

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Founded in 1956, Fair Isaac Corporation is a leading applied analytics company. Fair Isaac is primarily known for its FICO credit scores, which is a widely used industry benchmark to determine the creditworthiness of an individual consumer. The firm's credit scores business accounts for most of the firm's profits and consists of business-to-business and business-to-consumer services. In addition to scores, Fair Isaac also sells software primarily to financial institutions for areas such as analytics, decision-making, customer workflows, and fraud.

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