FDS
FactSet Research Systems Inc.$212.01
Hold
Target $254.46
Report: Mar 11, 2026Financial Services • Financial - Data & Stock Exchanges • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$212.01+20.0%
Rec: HoldConviction: High
Entry Target
$195.74
(8% below current)
Fair Value
$254.46
(20% above current)
Stop Loss
$204.94
(3% below current)
Position Size
Half
Time Horizon
Long-Term
Key Metrics
Live Snapshot
Market Data
52 Week High$474.79
52 Week Low$185.00
Avg. 3 Month Volume970K
Efficiency
LTM Gross Margin52.3%
LTM EBITDA Margin41.7%
LTM EBIT Margin33.3%
LTM Operating Margin31.7%
LTM ROA14.0%
LTM ROE28.0%
LTM ROIC41.9%
LTM ROCE21.1%
Capital Structure
Market Cap (MM)$8.1B
Enterprise Value (MM)$9.3B
Shares Outstanding37.41M
Total Debt (MM)$1.56B
Cash & Equivalents (MM)$275.45M
LTM Net Debt (MM)$1.28B
LTM Net Debt/EBITDA1.3x
Growth
TTM Rev. Growth5.9%
Last 3-Yr Rev. CAGR7.1%
Last 3-Yr EBITDA CAGR14.3%
Last 3-Yr EPS CAGR12.4%
Valuation
Street Target Price$277.89
LTM EV/Revenue4.0x
LTM EV/Gross Profit7.6x
LTM EV/EBIT11.9x
LTM EV/EBITDA9.5x
LTM P/E13.4x
LTM EV/FCF14.4x
LTM P/FCF12.4x
LTM P/TB7.7x
LTM P/B3.7x
Dividend Yield2.0%
Payout Ratio27.3%
Executive SummarySituation: Current price is $212.01 versus fair value $254.46 (20.0% expected return), and valuation confidence is stable. Debate: Bull case depends on Resolution of IT Material Weakness: Addressing the adverse auditor opinion on IT controls will remove a significant governance overhang and validate the new leadership's operational discipline. Bear case centers on Moat Erosion via AI Disruption: Low-cost AI competitors could provide 'good enough' data and analytics, breaking the workstation lock-in and forcing FactSet to lower prices. Conclusion: Recommendation is Hold with Half sizing and Long-Term horizon.
Bull Case
AI adoption is accelerating, with usage up 45% quarter-on-quarter, driving a 5.9% organic ASV growth rate. The company's 31.9% ROIC and 1.22x cash conversion ratio provide a robust engine for self-funded growth and capital returns.
Bear Case
Margin compression is real, with gross margins falling 1.4 points to 52.7% as technology spend outpaces revenue growth. Competitive disruption from low-cost AI data startups and antitrust scrutiny of the CUSIP moat could permanently impair pricing power.
Key Catalysts
Mid-Term (6-18 months)Impact: High
Resolution of IT Material Weakness: Addressing the adverse auditor opinion on IT controls will remove a significant governance overhang and...
Near-Term (0-6 months)Impact: Critical
Margin Stabilization: Demonstrating that adjusted operating margins can hold at the 34-35.5% guidance range despite AI spend will refute the...
Long-Term (18+ months)Impact: Moderate
FactSet is relevant now because it is in the first six months of a new CEO's tenure and is aggressively expanding its share repurchase progr...
Primary Risks
Concern: Medium
Moat Erosion via AI Disruption: Low-cost AI competitors could provide 'good enough' data and analytics, breaking the workstation lock-in and...
Concern: High
Sustained Margin Compression: If the 23% YoY increase in technology spend becomes a permanent requirement rather than a transitional pivot,...
Concern: Medium
The governance structure is currently in a 'Reset' phase following the CEO and Chair transitions. The Outcome Tree is as follows: 1. Status...
Recent Activity
2026-02-11SEC Filing (SC 13G/A)
-5.44%Morgan Stanley files Schedule 13G/A reporting 914,409 shares (2.5%) of FactSet Research Systems Inc.
2025-12-19Analyst Target
+5.54%Firm: Goldman Sachs Price Target: $253.00 Price When Posted: $273.39 Implied Downside: -7.5%
2025-12-18SEC Filing (8-K)
-7.68%FactSet reports Q1 FY2026 results with 6.9% revenue growth and increased share repurchase authorization
2025-09-18SEC Filing (8-K)
-10.36%FactSet reports Q4 2025 results with 6.2% revenue growth and provides fiscal 2026 guidance
2025-04-09Market Movement
+7.01%Market/Sector Move +7.01%
Valuation Table
9.8/10Decision Grade
Scenario Range
$205
Bear
$316
Bull
$212