📊 FDS Key Takeaways
Is FDS a Good Investment? Thesis Analysis
FactSet demonstrates solid financial health with strong profitability metrics (31.6% operating margin, 25.1% net margin) and consistent revenue growth of 5.4% YoY despite flat net income. The company maintains healthy liquidity (1.54x current ratio), reasonable leverage (0.63x debt/equity), and strong interest coverage (14.4x), though ROE of 7.0% suggests capital efficiency could improve.
Why Buy FDS? Key Strengths
- Exceptional operating margin of 31.6% indicates strong operational efficiency and pricing power
- Robust interest coverage ratio of 14.4x demonstrates comfortable debt servicing capability
- Healthy free cash flow generation of 90.4M (14.9% FCF margin) with FCF exceeding net income
- Solid balance sheet with debt/equity of 0.63x and current ratio of 1.54x providing financial flexibility
- Consistent revenue growth of 5.4% YoY in a stable data/software services sector
FDS Investment Risks to Consider
- Flat net income YoY (0.0% growth) despite 5.4% revenue growth indicates margin compression or cost headwinds
- Low ROE of 7.0% suggests inefficient capital deployment relative to equity base
- Low ROA of 3.0% indicates asset-heavy business model or underutilized assets
- Significant long-term debt of 1.4B requires ongoing cash generation to service and reduce leverage
- 13 Form 4 insider filings in 90 days warrants monitoring for potential insider concerns
Key Metrics to Watch
- Net income growth trajectory - critical to understand if flat YoY was temporary or structural
- Operating margin sustainability - ensure the 31.6% level is maintained amid competitive pressures
- Free cash flow conversion and dividend/debt paydown allocation
- Revenue growth acceleration - 5.4% YoY growth should accelerate given the business model
- ROE and ROA improvement - leverage excess cash to improve capital efficiency
FDS Financial Metrics
💡 AI Analyst Insight
FACTSET RESEARCH SYSTEMS INC presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
FDS Profitability Ratios
FDS vs Technology Sector
How FACTSET RESEARCH SYSTEMS INC compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FDS Overvalued or Undervalued?
Based on fundamental analysis, FACTSET RESEARCH SYSTEMS INC has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FDS Balance Sheet & Liquidity
FDS 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: FACTSET RESEARCH SYSTEMS INC's revenue has grown significantly by 46% over the 5-year period, indicating strong business expansion. The most recent EPS of $12.04 reflects profitable operations.
FDS Growth Metrics (YoY)
FDS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $568.7M | $150.0M | $3.89 |
| Q3 2025 | $552.7M | $148.5M | $3.87 |
| Q2 2025 | $545.9M | $140.9M | $3.65 |
| Q1 2025 | $542.2M | $148.6M | $3.84 |
| Q3 2024 | $529.8M | $134.7M | $3.46 |
| Q2 2024 | $515.1M | $131.6M | $3.38 |
| Q1 2024 | $504.8M | $136.8M | $3.52 |
| Q3 2023 | $488.8M | $74.9M | $1.93 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FDS Capital Allocation
FDS SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for FACTSET RESEARCH SYSTEMS INC (CIK: 0001013237)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FDS
What is the AI rating for FDS?
FACTSET RESEARCH SYSTEMS INC (FDS) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FDS's key strengths?
Claude: Exceptional operating margin of 31.6% indicates strong operational efficiency and pricing power. Robust interest coverage ratio of 14.4x demonstrates comfortable debt servicing capability.
What are the risks of investing in FDS?
Claude: Flat net income YoY (0.0% growth) despite 5.4% revenue growth indicates margin compression or cost headwinds. Low ROE of 7.0% suggests inefficient capital deployment relative to equity base.
What is FDS's revenue and growth?
FACTSET RESEARCH SYSTEMS INC reported revenue of $607.6M.
Does FDS pay dividends?
FACTSET RESEARCH SYSTEMS INC pays dividends, with $41.4M distributed to shareholders in the trailing twelve months.
Where can I find FDS SEC filings?
Official SEC filings for FACTSET RESEARCH SYSTEMS INC (CIK: 0001013237) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FDS's EPS?
FACTSET RESEARCH SYSTEMS INC has a diluted EPS of $4.06.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FDS a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, FACTSET RESEARCH SYSTEMS INC has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is FDS stock overvalued or undervalued?
Valuation metrics for FDS: ROE of 7.0% (sector avg: 22%), net margin of 25.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy FDS stock in 2026?
Our dual AI analysis gives FACTSET RESEARCH SYSTEMS INC a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is FDS's free cash flow?
FACTSET RESEARCH SYSTEMS INC's operating cash flow is $121.3M, with capital expenditures of $30.8M. FCF margin is 14.9%.
How does FDS compare to other Technology stocks?
Vs Technology sector averages: Net margin 25.1% (avg: 18%), ROE 7.0% (avg: 22%), current ratio 1.54 (avg: 2.5).