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Factset Research Systems Inc

Factset Research Systems Inc

FDS
$259.71USD↓-1.22%-3.22 today

MARKET CAP

9.2B

P/E (TTM)

16.7x

FWD P/E

—

DAY RANGE

$256 – $265

52W RANGE

$185
$371

AI Summary

Stalk
Sell NowMedium

FDS broke through its multi-touch support in early September with a high-volume red candle, closing below the declining 9 and 20 EMAs and signaling committed selling in a Stage 4 decline. Short-term price remains below declining EMAs and is oversold without clear exhaustion, favoring further downside. Execution calls for selling now into minor rallies up to the 9/20 EMA region or prior support-turned-resistance.

  • ↑Q3 EPS $4.53 (+6.1% YoY) and revenue $622.9M (+6.4% YoY).
  • ↑ASV grew 7.1% to $2.48B, with AI driving >10% ASV growth.
  • ↓Earnings yield negative and shares fell 3%, pointing to rich valuation.
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The case for & against

Bull & Bear analysis

Bullish

FactSet Research Systems Inc. (NYSE:FDS) is a leading provider of financial data and analytics, catering primarily to investment professionals across various sectors. The company offers a comprehensive suite of data and analytics solutions, focusing on integrated services that combine connected data, embedded workflows, and exceptional client service. With a robust client base including many top investment firms, FactSet positions itself as a vital partner in the evolving landscape of financial services, particularly as it embraces AI technology in its offerings.

Bull says

  • ↑Q3 EPS $4.53 (+6.1% YoY) and revenue $622.9M (+6.4% YoY).
  • ↑ASV grew 7.1% to $2.48B, with AI driving >10% ASV growth.
  • ↑Over 90% of top 50 clients now use four+ AI solutions.
  • ↑Dividend $1.16/share (annual growth ~10%), yield 0.41%; Q3 buybacks $203M.
  • ↑Client retention >95%, bookings ahead of last year, robust pipeline.
  • ↑Book-to-price 0.835 and low short interest suggest undervaluation and stability.

Bear says

  • ↓Earnings yield negative and shares fell 3%, pointing to rich valuation.
  • ↓Adjusted operating margin slid to 34% (-300bps YoY), signaling cost pressure.
  • ↓Growth metrics weak, tough comparisons ahead may curb revenue momentum.
  • ↓Leverage elevated, high debt could strain cash flow in downturn.
  • ↓Profitability and momentum scores weak; volatility score indicates stock instability.
  • ↓Heavy reliance on AI adoption risks if competition or demand shifts.

Investment themes with FDS

High Dividend Yield↓ -0.51%

Companies paying above-average dividends

AVGO · JPM · XOM
Capital Markets↓ -1.45%

Debt and equity trading fueling economic growth

SNEX · AAMI · PWP
Brokerages↓ -0.86%

GS · MS · SCHW

Earnings Call · Q2 2024 · Mgmt. Guidance

Updated 03-23-2025neutral

Transcript signals

Bull points

  • we've been talking about three areas there where we've been focused on increasing the efficiency of producing code, which we believe can create significant opportunities for us as we get a good handle on what those efficiency gains could be and which parts of our tech stack and product it makes sense to apply them.
  • Second quarter organic ASV grew 5.4% while adjusted operating margin improved 130 basis points to 38.3% and adjusted diluted EPS rose 11% to $4.22.
  • For the quarter, GAAP revenue increased 6% to $546 million on sales to asset owners, corporates, hedge funds, and private equity and venture capital clients.

Bear points

  • price realization in new business is a bit lower, reflecting a more competitive environment
  • we're not hugely optimistic about that
  • Total expenses for the second quarter, $337 million, and we do expect that those will ramp. This is mostly driven by the technology cost. And Craig, what we're seeing is we have to build in more cloud costs as gen AI takes off and as we get increased demand on that front. So most of this comes from the technology budget.
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