FactSet Research Systems Inc. Logo
Financial Services · NYSE/NASDAQ: FDS

FactSet Research Systems Inc.

Financial Data & Stock Exchanges
Market Cap $8.95B
Verdict: High

Quality Scores

Multi-Bagger
78/100
Compounder Quality
94/100
Management Credibility
96/100
Governance
92/100
Cash Flow Quality
96/100

AI Summary

FactSet Research Systems Inc. (FDS) represents a quintessential high-quality compounding business within the financial data and software sector. Over the past decade, the company has demonstrated remarkable resilience, characterized by consistent organic revenue growth and expanding operating margins. FactSet has successfully transitioned from a workstation provider to a comprehensive data platform, integrating ESG, wealth management, and deep-sea analytics. The business model is underpinned by a highly recurring subscription-based revenue stream (ASV), which typically exceeds 95% retention.…

Top Opportunities

  • 25+ consecutive years of dividend increases
  • High percentage of recurring subscription revenue (>90%)
  • Exceptional client retention rates (>90%)

Top Risks

  • Stagnating headcount growth in financial services sector
  • Intense competition from Bloomberg and MSCI
  • Increased debt levels post-2022

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