Sector: Financials | Focus: Financial Exchanges & Data
HQ: Norwalk, Connecticut
Financial Risks
FactSet faces risks from technology failures (cyberattacks, system outages), competition (price pressures, market share loss), economic downturns (reduced client spending, lower returns), regulatory changes (increased costs, compliance issues), and potential acquisition integration problems. Debt obligations (variable interest rates, covenants) and sales tax disputes (potential material charges) also pose significant risks. The company's internal controls over financial reporting are deemed not effective, creating a material weakness.
Financial Upside
FactSet's revenue increased 5.6% in fiscal 2024, driven by organic growth and higher demand for workstations, data solutions, and middle office solutions. Organic ASV plus Professional Services grew 4.8%. Operating margin improved to 31.8%. The company returned $385.9 million to shareholders through share repurchases and dividends. Acquisitions (CGS, Cobalt) and investments in AI are intended to drive future growth.
