FICO Stock Analysis 2025: Is It a Buy?

Strategy Sprints

🐬 Simon's Portfolio: https://www.strategysprints.com ⚡️ Free Tools: https://www.strategysprints.com/tools 💎 The Investing Show Newsletter: https://theinvestingshow.beehiiv.com/ I waited 5 YEARS to buy this AI stock with a 42% ROIC - here's why FICO might be the ultimate data moat play (but there's a valuation problem) Discover why FICO (Fair Isaac) could be the best AI investment play with an unbreakable data moat and 90% market dominance. After 5 years on my watchlist, here's my complete investment analysis. You'll Learn: Why FICO has a 42% ROIC (Return on Invested Capital) - one of the highest on the planet How Rocket Mortgage uses FICO to approve loans in 2 hours vs industry average of 35 days The "Nobody Gets Fired" factor that creates ultimate customer loyalty Complete SWOT analysis of FICO's 90% US market share dominance Why the $4 trillion lending market makes this essential infrastructure Current valuation analysis: Fair value $1,600 vs current price $1,816 My exact entry strategy and why timing matters See how my income portfolio generated $8,900-$14,000 monthly from a $150K account using strategic options trading. Chapter Markers 00:34 - Personal Investment Story: 5 Years on Watchlist, Waiting for Entry 01:01 - Use Case Deep Dive: Rocket Mortgage Success Story 01:26 - FICO's Game-Changing Results: 2 Hours vs 35 Days Loan Approval 02:06 - The "Nobody Gets Fired" Factor: FICO as Gold Standard 03:28 - Capitalism & Lending: Why FICO is Essential to Society 04:41 - Profitability Analysis: 42% ROIC Performance 05:52 - Growth Rate: Sustainable 15% Annual Growth 06:13 - Competitive Moats: Loyalty, IP, and Regulatory Protection 07:59 - Brand Risk Aversion: The IBM Dynamic in Finance 08:14 - SWOT Analysis: 90% US Market Share Dominance 08:58 - Weaknesses: US Lending Cycle Dependency 09:17 - AI Threats vs Opportunities: Disruption and Enhancement 09:57 - Investment Thesis: Ultimate Switching Cost Moat SOCIAL MEDIA ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ 🐦 X: https://x.com/simonseverino 👋 LinkedIn: https://at.linkedin.com/in/simonseverino 🎉 Free Community: https://www.strategysprints.com/offers/q5PdV9FV DISCLAIMER ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ I am not a professional investor and have never claimed to be. I'm a private investor sharing my experience of what I've learned, where I have had success, and where I've had failures. I share my thoughts on investing and performance with transparency. My approach and goal to investing is to buy high-quality long-term investments in world-class businesses that I call "compounders". I view my investments as businesses, not as stocks. I am a strategy advisor. Over the years as an advisor, I compounded my knowledge. I take the same iterative learning approach to my study of investing. I study investing as a craft in the continual pursuit of being better. I will make mistakes in investment decisions from time to time. Results are not guaranteed. Please do not blindly follow me into any investments, and make sure your portfolio and investments are built around your specific income, risk tolerance, personality, timeline, and overall circumstances.