FDS Stock Analysis — FactSet Research Systems
Sector: Financial Data & Analytics
AI Verdict
FactSet trades at 13.0x next year's earnings with 27.8% EPS growth expected, making it cheap for the growth on offer if its sticky client base holds, but the RSI of 79.0 means short-term buyers risk a painful reversal.
Competitive Moat
FactSet delivers integrated financial data and analytics platforms to institutional investors, with sticky client relationships due to deep workflow integration and proprietary datasets. Its moat comes from high switching costs and a reputation for reliability among asset managers, though it faces pressure from larger rivals like Bloomberg and Refinitiv.
Summary
FactSet’s forward P/E of 13.0x and expected 27.8% EPS growth make it unusually cheap for a financial data provider, but the RSI of 79.0 signals extreme overbought territory.
Where It Stands
Despite a -40.74% one-year return and a trailing P/E of 16.6x (well below the sector median of 14x for financials), the RSI at 79.0 suggests the stock is overheated after a sharp bounce.
Key Metrics
- RSI: 79 — Overbought
- Trailing P/E: 16.6x
- Forward P/E: 13.0x
- PEG Ratio: 0.61
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Market Cap: $9.4B
- Dividend Yield: 0.02%
- 1-Year Return: -40.74%
- 52-Week High: $455.73
- 52-Week Low: $185.00
Analyst Consensus
3 Buy · 14 Hold · 10 Sell (27 analysts)
Bull Case
With analysts expecting 27.8% EPS growth and the stock trading at just 13.0x next year's earnings, you're getting rapid earnings expansion at a discount multiple.
Bear Case
If the RSI of 79.0 corrects to a neutral 60, a 25% pullback would erase much of any near-term upside, especially after a -40.74% year.
Catalyst to Watch
Watch for quarterly earnings surprises or client retention updates, as any sign of lost market share could undermine the low forward P/E thesis.