FactSet Research Systems Inc
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$451.00 | Fdpllz | Tmtgjtl |
FactSet’s Recurring Revenue Model Fares Well but Is Not Immune to Macroenvironment Volatility
Business Strategy and Outlook
FactSet has built an attractive subscription-based business providing data and analytics to the financial-services industry. FactSet is best known for its research solutions, which include its core desktop offering geared toward buy-side asset managers and sell-side investment bankers. Research is the largest component of the firm’s annual subscription value but is FactSet’s slowest-growing segment due to its maturity and pressures on asset managers. Beyond research, FactSet offers analytics and trading solutions (32% of firm ASV), which include portfolio analytics, risk management, performance reporting, trade execution, and order management.