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FDS FactSet

capital_markets · valued with sonnet high conviction · 2026-06-25

STRONG SELL
wonderful · 92 ▟ narrow moat circle of competence: in ✓ would own for a decade
Owner-earnings value$105.52
Price$216.45
Margin of safety -51.2%

Deeply embedded data terminal; switching costs protect durable 8% growth at a fair price

The business

FactSet sells subscription-based financial data, analytics, and workflow tools to investment professionals — buy-side PMs, sell-side analysts, wealth managers. Clients access integrated multi-source data via desktop terminals, Excel add-ins, and APIs on annual contracts; revenue is >90% recurring with ~7,000 client firms and ~183,000 individual users.

Quality gate · 92/100

Returns on capital 29.5/30
Consistency 21.6/22
Margins / pricing power 13.4/16
Balance sheet 15.8/16
Cash conversion 7.0/10
Capital allocation 4.9/6
Median ROE28.5%
Gross margin51.9%
FCF conversion115%
Share count / yr-0.4%
Profitable years4/4

Moat & management

Moat ▟ narrow moat
Sourceswitching costs
Trajectorystable
Managementexcellent

Workflows, valuation models, compliance processes, and data mappings are deeply embedded in FactSet's platform — ripping it out means retraining staff, rebuilding models, and re-integrating data feeds, which almost never happens mid-cycle. Bloomberg's sell-side messaging network and terminal dominance cap FactSet's ceiling, and AI threatens to commoditize some analytics layers over the decade, preventing a 'wide' rating.

Conservative ~1.25x net debt/EBITDA, 32%+ operating margins sustained through cycles, disciplined bolt-on M&A (Portware, BISAM, Vermilion) rather than transformative empire-building, and only modest buybacks — they reinvest first and return capital second, which is correct given >28% ROE.

Owner-earnings inputs

Owner earnings (TTM)587.79M
Owner-earnings yield7.5%
Free-cash-flow yield8.7%
Growth used (normalized)7.0%
Terminal growth3.0%
Discount rate (hurdle)7.6%

Key risks

  • AI commoditizes financial data analytics, eroding terminal value proposition over 5-10 years
  • Asset manager consolidation shrinks seat count and compresses per-seat pricing power
  • LSEG/Refinitiv completes its integration and re-emerges as a credible, well-resourced #2

Catalysts

  • Proprietary data assets (CTS concordance, StreetAccount) anchor AI products competitors cannot replicate
  • Wealth management and private markets verticals remain underpenetrated and are growing fast

Recent news

score · 8 articles

  • FedEx Earnings Beat Expectations. The Stock Is Falling Anyway.
  • KB Home Reports Lower Revenue as Difficult Housing Market Persists
  • Korn Ferry Reports Higher Fiscal Fourth-Quarter Results
  • Alimentation Couche-Tard Fiscal Q4 Adjusted Profit Jumps 51%, Tops Estimates
  • Recurring Revenues & Strong Liquidity Aid FDS Amid High Rivalry
  • Can FactSet (FDS) Sustain Its Dividend Advantage Without Shifting Its Quality-First Playbook?
  • Top Midday Decliners
  • Update: Accenture Shares Fall After Fiscal 2026 Revenue Guidance Cut

⚠ financial — owner earnings ≈ net income · financial — valued by residual income (ROE vs cost of equity on book equity)

History

DateQualityPriceValueMoSRating
2026-10-28 90 $309.54 $101.14 -67.3% HOLD
2026-10-27 90 $323.39 $101.14 -68.7% HOLD
2026-10-26 90 $331.32 $101.14 -69.5% HOLD
2026-10-23 90 $335.45 $101.14 -69.8% HOLD
2026-10-22 90 $319.91 $101.14 -68.4% HOLD
2026-10-21 90 $312.27 $101.14 -67.6% HOLD
2026-10-20 90 $303.21 $101.14 -66.6% HOLD
2026-10-19 90 $301.67 $101.14 -66.5% HOLD
2026-10-16 90 $301.83 $101.14 -66.5% HOLD
2026-10-15 90 $289.74 $101.14 -65.1% HOLD
2026-10-14 90 $290.82 $101.14 -65.2% HOLD
2026-10-13 90 $288.67 $101.14 -65.0% HOLD
2026-10-12 90 $287.18 $101.14 -64.8% HOLD
2026-10-09 90 $286.52 $101.14 -64.7% HOLD
2026-10-08 90 $272.78 $101.14 -62.9% HOLD
2026-10-07 90 $272.01 $101.14 -62.8% HOLD
2026-10-06 90 $276.44 $101.14 -63.4% HOLD
2026-10-05 90 $266.00 $101.14 -62.0% HOLD
2026-10-02 90 $277.61 $101.14 -63.6% HOLD
2026-10-01 90 $269.95 $101.14 -62.5% HOLD
2026-09-30 90 $259.97 $105.97 -59.2% HOLD
2026-09-29 90 $267.67 $105.97 -60.4% HOLD
2026-09-28 90 $273.08 $105.97 -61.2% HOLD
2026-09-25 90 $271.25 $105.97 -60.9% HOLD
2026-09-24 90 $279.43 $105.97 -62.1% HOLD
2026-09-23 90 $284.10 $105.97 -62.7% HOLD
2026-09-22 90 $284.10 $105.97 -62.7% HOLD
2026-09-21 90 $283.83 $105.97 -62.7% HOLD
2026-09-18 90 $278.85 $105.97 -62.0% HOLD
2026-09-17 90 $276.41 $105.97 -61.7% HOLD
2026-09-16 90 $277.09 $105.97 -61.8% HOLD
2026-09-15 90 $276.93 $105.97 -61.7% HOLD
2026-09-14 90 $259.71 $105.97 -59.2% HOLD
2026-09-11 90 $262.93 $105.97 -59.7% HOLD
2026-09-10 90 $279.17 $105.97 -62.0% HOLD
2026-09-09 90 $289.00 $105.97 -63.3% HOLD
2026-09-08 90 $301.96 $105.97 -64.9% HOLD
2026-09-07 90 $301.96 $105.97 -64.9% HOLD
2026-09-04 90 $312.96 $105.97 -66.1% HOLD
2026-09-03 90 $306.07 $105.97 -65.4% HOLD
2026-09-02 90 $305.44 $105.97 -65.3% HOLD
2026-09-01 90 $313.55 $105.97 -66.2% HOLD
2026-08-31 90 $308.98 $105.97 -65.7% HOLD
2026-08-28 90 $304.47 $105.97 -65.2% HOLD
2026-08-27 90 $295.45 $105.97 -64.1% HOLD
2026-08-26 90 $296.08 $105.97 -64.2% HOLD
2026-08-25 90 $305.31 $105.97 -65.3% HOLD
2026-08-24 90 $299.91 $106.06 -64.6% HOLD
2026-08-21 90 $300.06 $106.06 -64.7% HOLD
2026-08-20 90 $298.10 $106.06 -64.4% HOLD
2026-08-19 90 $285.41 $106.06 -62.8% HOLD
2026-08-18 90 $283.49 $106.06 -62.6% HOLD
2026-08-17 90 $283.49 $106.06 -62.6% HOLD
2026-08-14 90 $287.18 $106.06 -63.1% HOLD
2026-08-13 90 $277.99 $106.06 -61.8% HOLD
2026-08-12 90 $282.95 $106.06 -62.5% HOLD
2026-08-11 90 $284.12 $106.06 -62.7% HOLD
2026-08-10 90 $285.57 $106.06 -62.9% HOLD
2026-08-07 90 $274.58 $106.06 -61.4% HOLD
2026-08-06 90 $278.03 $106.06 -61.9% HOLD
2026-08-05 90 $274.49 $106.06 -61.4% HOLD
2026-08-04 90 $263.20 $106.06 -59.7% HOLD
2026-08-03 90 $263.20 $106.06 -59.7% HOLD
2026-07-31 90 $263.03 $106.06 -59.7% HOLD
2026-07-30 90 $282.04 $106.06 -62.4% HOLD
2026-07-29 90 $265.90 $106.06 -60.1% HOLD
2026-07-28 90 $265.90 $106.06 -60.1% HOLD
2026-07-27 90 $243.96 $106.06 -56.5% HOLD
2026-07-24 90 $243.96 $106.06 -56.5% HOLD
2026-07-23 90 $245.21 $106.06 -56.7% HOLD
2026-07-22 90 $246.95 $106.06 -57.1% HOLD
2026-07-21 90 $255.79 $106.06 -58.5% HOLD
2026-07-20 90 $258.09 $106.06 -58.9% HOLD
2026-07-17 90 $262.46 $106.06 -59.6% HOLD
2026-07-16 90 $251.19 $104.80 -58.3% HOLD
2026-07-15 90 $263.11 $104.80 -60.2% HOLD
2026-07-14 90 $263.11 $104.80 -60.2% HOLD
2026-07-13 90 $247.11 $104.80 -57.6% HOLD
2026-07-10 90 $241.90 $104.80 -56.7% HOLD
2026-07-09 90 $247.82 $104.80 -57.7% HOLD
2026-07-08 90 $258.30 $104.80 -59.4% HOLD
2026-07-07 90 $252.20 $104.80 -58.4% HOLD
2026-07-06 90 $250.09 $104.80 -58.1% HOLD
2026-07-03 90 $250.09 $104.80 -58.1% HOLD
2026-07-02 90 $245.55 $104.80 -57.3% HOLD
2026-06-25 92 $216.45 $105.52 -51.2% STRONG SELL
2026-06-23 92 $218.15 $104.62 -52.0% STRONG SELL