ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Fair Isaac's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 68.35%.
As of today (2026-06-24), Fair Isaac's WACC % is 11.87%. Fair Isaac's ROC % is 50.18% (calculated using TTM income statement data).
Fair Isaac generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Fair Isaac (NYSE:FICO) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Fair Isaac's WACC % is 11.87%. Fair Isaac's ROC % is 50.18% (calculated using TTM income statement data).
Fair Isaac generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Fair Isaac ROC % Related Terms
Fair Isaac ROC % Historical Data
* Premium members only.
The historical data trend for Fair Isaac's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Fair Isaac (FICO) has a ROC % of 68.35% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Fair Isaac and its competitors.
Is Fair Isaac's ROC % too high?
Fair Isaac's current ROC % is 68.35%. The Software industry median ROC % is 3.12. Fair Isaac's value of 68.35% is 2090.7% above this industry median. Overall, Fair Isaac has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Fair Isaac's ROC % compare to ZM and TEAM?
Fair Isaac's ROC % of 68.35% can be compared against companies in the Software industry. The industry median ROC % is 3.12. Fair Isaac's value of 68.35% is 2090.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Software company?
The median ROC % among Software companies is 3.12, based on 2,828 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Fair Isaac's current ROC % of 68.35% is 2090.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Fair Isaac and its competitors. For the Software industry, the median ROC % is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fair Isaac's current ROC % is 68.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fair Isaac stock overvalued right now?
Based on GuruFocus' analysis, Fair Isaac (FICO) is currently considered Significantly Undervalued. The stock's GF Value™ is $2,086.40, compared to a current price of $1,145.78 — trading 45.1% below its estimated fair value. The current ROC % is 68.35% and 2090.7% above the Software industry median of 3.12. Fair Isaac's overall GF Score™ is 87/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Fair Isaac (FICO), the current ROC % is 68.35% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Fair Isaac (FICO) Overvalued in 2026?
Based on GuruFocus' analysis, Fair Isaac stock appears to be undervalued.
The current stock price of $1,145.78 is trading 45.1% below its estimated GF Value™ of $2,086.40.
GuruFocus considers Fair Isaac to be Significantly Undervalued.
Key valuation signals for FICO:
ROC %: 68.35%
GF Value™: $2,086.40 vs. price of $1,145.78 (45.1% below fair value)
Industry Position: 2090.7% above the Software median
No single metric tells the full story. See the FICO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 US-centric credit scores business accounts for most of the firm's revenue and 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.
87GF Score
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