FactSet Research
(FDS ) is a global supplier of
financial and economic data to the global investment community through 1600
databases with information along with powerful analytics on tens of thousands
of companies, multiple stock markets and governments. The company earns a 25%+
return on equity and has grown earnings and dividends 19-25% over the last ten
years. FDS should continue its
above average performance as a result of:
(1) its
portfolio analytics system is the industry leader; because of its extensive
product development and strong client relationships, FDS
has not only created a high barrier to entry but is also increasing its market
share,
(2) its ability
to sell additional products to existing customers such as coverage of corporate
bonds and fixed income derivative securities as well as products for investment
banking, plan sponsors and corporate finance,
(3) acquisitions
(4) stock
buybacks.
Negatives:
(1) it is in a highly competitive industry,
(2) the risk of
a shrinking ‘soft dollar’ [means of payment] pool.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio Since 2004
Ind Ave 1.8* 6 37 NA
Debt/ EPS Down Net Value Line
Equity ROE Since 2004 Margin
Rating
Ind Ave 41 29 NA 16 NA
*many companies in FDS industry do not pay a dividend
Chart
Note:
FDS stock made good initial progress off its November 2008 low, surpassing the downtrend
off its October 2007 high (straight red line) and the November 2008 trading
high (green line). Long term the stock
is in an uptrend (blue lines).
Intermediate term, it is in an uptrend (purple lines). The wiggly red line is the 50 day moving
average. The Aggressive Growth Portfolio
owns a 75% position in FDS. The upper boundary
of its Buy Value Range is $84; the lower boundary of its Sell Half Range is
$157.
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