Key Takeaways
📈 FactSet offers a 1.01% dividend yield with 24 consecutive years of growth and a payout ratio under 30%, signaling strong potential for continued increases.
💵 The company generated $661.7 million in operating cash flow and $564.8 million in free cash flow over the trailing 12 months, comfortably covering dividends and buybacks.
🧐 Recent analyst downgrades reflect concerns about growth and valuation, with a current consensus price target of approximately $444.94.
📊 Earnings showed a 4.5% revenue increase and solid EPS growth, while leadership reaffirmed full-year guidance and highlighted ongoing investment in front-office solutions.
Last Update 5/4/25
FactSet Research Systems Inc. (FDS) delivers financial data and analytics to the institutions that shape global markets. With over two decades of consistent dividend growth, high margins, and strong free cash flow, it has built a reputation for dependable execution and steady returns. Its client base, largely made up of wealth managers and institutional firms, relies heavily on its platform, which drives recurring revenue and low churn.
Leadership remains focused on long-term growth through disciplined capital allocation, strategic acquisitions like LiquidityBook, and ongoing technology investment. Despite recent stock pressure and cautious analyst revisions, FactSet maintains strong fundamentals and a clear roadmap for expansion.
Recent Events
The stock closed at $434.56 on May 2, holding relatively steady over the past few weeks. While it’s off its 52-week high of just under $500, the move down hasn’t been dramatic. It’s more of a reset than a breakdown—a chance to cool off after a strong multi-year run.
What’s changed underneath is valuation. The trailing P/E ratio has eased back to 30.86 from recent highs over 37, and forward estimates are looking more grounded at 23.2. This gives long-term holders some breathing room and sets a more realistic bar for future performance.
Revenue in the past year came in at $2.25 billion, with the most recent quarter showing 4.5% year-over-year growth. Not eye-popping, but definitely steady. Net income also moved higher, with EPS at $14.08. More importantly for income investors, profit margins are holding firm—over 32% at the operating level. That signals pricing power and operational efficiency, even with ongoing investment in their platform.
Debt levels are worth noting, but not alarming. FactSet carries about $1.66 billion in total debt, but with over $661 million in cash flow from operations and more than $500 million in levered free cash flow, it’s not a cause for concern. The company is clearly managing its financials with the long game in mind.
Key Dividend Metrics
📈 Forward Yield: 1.01%
💰 Annual Dividend (Forward): $4.40
📆 Dividend Growth Streak: 24 years
🧮 Payout Ratio: 29.55%
💵 5-Year Average Yield: 0.87%
🎯 Next Ex-Dividend Date: May 30, 2025
📊 Cash Flow Coverage: Strong
📉 Share Count: 37.95 million and trending down
Dividend Overview
FactSet’s dividend doesn’t scream for attention—and that’s kind of the point. The yield sits just over 1%, which won’t thrill income chasers, but there’s value in the quiet consistency here. For over two decades, the company has raised its dividend without interruption. That’s not luck—that’s a result of solid execution and a management team that respects long-term shareholders.
At $4.40 annually, the dividend is well supported by earnings and cash flow. It’s not inflated, not promotional, just sustainable. The payout ratio is under 30%, which means there’s still plenty of room to grow the dividend without stressing the business. Even during more challenging market periods, the dividend hasn’t wavered.
What makes FactSet stand out is how little noise surrounds it. It just keeps doing the work—year after year, quarter after quarter. That’s what gives income investors peace of mind. No need to worry about cuts, capital raises, or wild strategy pivots.
Dividend Growth and Safety
This is where FactSet earns serious respect. Over the past five years, dividend increases have outpaced inflation, helping protect real income. Growth has been measured but consistent, which is exactly what a long-term investor wants.
The safety side of the story is even more reassuring. With more than $287 million in cash on hand and a reliable stream of free cash flow, there’s a solid cushion between operations and dividend obligations. The company isn’t overextending itself just to appeal to dividend-focused investors. It’s funding its dividend from a position of strength.
Debt is present, yes, but manageable. The debt-to-equity ratio is under 81%, and when you stack that against FactSet’s healthy EBITDA and cash generation, it’s not something that puts the dividend at risk.
Add to that the company’s shareholder-friendly stance. FactSet keeps its share count tight, avoiding unnecessary dilution. That’s good for per-share metrics—and good for anyone holding the stock for income.
With a beta of 0.82, FactSet tends to move less than the broader market. That stability is another feather in the cap for income-focused portfolios. The next ex-dividend date is May 30, so investors watching for opportunities to pick up a steady payer may want to keep that date in mind.
FactSet won’t appeal to everyone, but for those who appreciate quiet consistency, strong fundamentals, and a dividend that actually grows—this is a name worth remembering.
Cash Flow Statement
FactSet’s cash flow generation remains one of its key strengths. Over the trailing twelve months, the company produced $661.7 million in operating cash flow, a solid performance compared to $700.3 million in the prior fiscal year. Despite the slight dip, it still reflects healthy business operations and strong underlying profitability. Free cash flow came in at $564.8 million, comfortably above dividend requirements and allowing room for continued share repurchases or reinvestment. Capital expenditures remained disciplined at $96.9 million, showing a balanced approach between innovation and efficiency.
On the financing side, FactSet repaid $325 million in debt while issuing $305 million, suggesting a strategic rollover or refinancing approach rather than expanding leverage. The company also returned $236.2 million to shareholders through stock buybacks, reinforcing its shareholder-friendly philosophy. Cash used in investing activities was elevated at $399.1 million, much higher than historical norms, which may indicate more aggressive investments or acquisitions. The end cash position stands at $297.1 million, down from previous years but still healthy given the consistent free cash flow and modest capital needs. Overall, the cash flow picture supports FactSet’s steady dividend profile and ongoing capital returns.
Analyst Ratings
📉 FactSet Research Systems Inc. (FDS) has recently faced a wave of downgrades as analysts reassess the company’s short-term prospects. On March 21, 2025, Wells Fargo shifted its rating from “Equal Weight” to “Underweight” and trimmed the price target from $450 to $402. The downgrade was largely based on concerns over slowing growth and possible pressure on margins as the competitive landscape becomes more challenging. Morgan Stanley echoed a similar sentiment, holding its “Underweight” rating while cutting its price target from $409 to $390, pointing to uncertainty in client budgets and rising competition from newer platforms.
🔄 Not all analyst activity has been negative, though. UBS kept its “Neutral” stance but dialed down its price target from $525 to $480. The move suggests confidence in the core business while acknowledging a more cautious near-term growth outlook. BMO Capital also held onto its “Market Perform” rating while adjusting its target price from $498 to $466, reflecting a recalibration of expectations rather than a fundamental shift in view.
📊 The average consensus price target now sits around $444.94. This reflects a balanced view across the analyst community—acknowledging FactSet’s operational strength, but also recognizing that its valuation leaves little room for error in a more cost-conscious environment.
Earning Report Summary
Steady Growth and Strong Client Demand
FactSet’s latest quarterly report shows a business that’s still growing, just at a more measured pace. Revenue came in at $570.7 million, which was up 4.5% compared to the same period last year. That kind of growth might not raise eyebrows, but it does speak to a stable and loyal client base, especially on the wealth and institutional buy-side. Their core business metric, Annual Subscription Value (ASV), also moved in the right direction—up 4.1% year-over-year to $2.28 billion. That tells you the clients they have are sticking around and spending more.
Margins Under Some Pressure
Earnings were solid, but there were a few areas where cost pressures made an appearance. GAAP earnings per share rose 3% to $3.76, and adjusted EPS edged higher by 1.4% to $4.28. On the margin side, though, things tightened up a bit. The GAAP operating margin slipped to 32.5%, and the adjusted figure dropped to 37.3%. Most of that was tied to tech investments and some acquisition-related costs, which are common growing pains when you’re trying to stay competitive in a data-driven industry.
Leadership’s Outlook
CEO Phil Snow pointed to the acquisition of LiquidityBook as a major step forward. It’s a move aimed at strengthening FactSet’s capabilities in the trade execution space—essentially giving clients a more complete front-office solution. Meanwhile, CFO Helen Shan spoke about confidence in the second half of the year, citing a healthy pipeline and ongoing investment in areas that should fuel future growth. It was clear from the tone of leadership that they’re not just trying to hold the line—they’re looking to build on this foundation.
Guidance Holds Firm
Looking ahead, the company stuck to its full-year outlook. They’re forecasting organic ASV growth of $100 to $130 million, which aligns with the performance trend seen so far. Revenue is expected to land between $2.31 and $2.33 billion for the full year. On the earnings side, adjusted EPS guidance was reaffirmed at a range of $16.80 to $17.40. Management also noted that the second half should bring stronger momentum, thanks to product innovation and broader adoption of their analytics and data platforms.
Chart Analysis
Price Action and Moving Averages
FDS has seen some wide swings over the past year, starting around the $440 mark, dipping below $400 by June, and then rallying to a high near $495 in December. Since that peak, the stock has been trending lower, gradually giving back gains through the first half of the year.
The 50-day moving average, shown in red, climbed steadily from August through February but has started to curl lower. That’s often a sign that short-term momentum is cooling. The 200-day moving average, in contrast, has been relatively flat, with a very modest upward slope in recent months. What stands out is how the price recently fell below both moving averages—never a great sign when it comes to momentum. That crossover of the 50-day below the 200-day earlier in the year hints at a shift in tone from buyers to sellers.
Volume and Momentum
Volume activity remained mostly steady throughout the year, with a few clear spikes—particularly during the selloffs in early May and December. Those higher-volume down days suggest some institutional selling or at least broad participation during moments of price weakness. More recently, volume has quieted again, which could mean traders are sitting on their hands, waiting for a clearer signal.
Looking at the RSI at the bottom, momentum has stayed mostly range-bound. There were brief dips into oversold territory back in June and again in early April, but the stock hasn’t truly looked overbought since early February. Right now, the RSI is hovering near neutral. That reflects indecision more than strength or weakness, which fits with the broader sideways action in the price.
Technical Context
The stock has been consolidating in the $420–$440 zone, which has acted like a magnet for price action lately. There’s no strong breakout or breakdown underway, which suggests the market is still figuring out what to do with this name after the pullback from the highs. If support holds near the $420 level and volume starts picking up with price strength, that could point to a shift in sentiment.
For now, the trend has cooled off, but the longer-term picture isn’t broken. It’s just paused.
Management Team
FactSet’s leadership has long prioritized consistency and quiet execution over headline-grabbing moves. At the helm is CEO Phil Snow, who’s been with the company for more than two decades and stepped into the top role in 2015. His style is steady and focused, with an emphasis on refining and expanding the company’s core offerings rather than chasing short-term trends. Under his leadership, FactSet has broadened its data platform and tightened client relationships, while still keeping a close eye on operational discipline.
CFO Helen Shan brings a sharp focus on long-term financial health. She’s led the company through careful capital allocation decisions, balancing internal investment with shareholder returns. Shan has emphasized the importance of maintaining strong free cash flow and managing debt, which fits well with FactSet’s low-drama, fundamentals-first approach. The rest of the executive team is made up of veterans in data analytics, finance, and technology, and they’ve managed to evolve the company’s offerings without compromising on service or reliability. Their tone remains consistent: conservative but forward-looking, always pushing to stay ahead without losing sight of the company’s identity.
Valuation and Stock Performance
FactSet trades at a valuation that reflects its reputation for quality. The current trailing P/E is around 30.9, while the forward P/E is about 23.2, suggesting expectations for solid earnings growth. That’s not the lowest multiple on the market, but it’s one that’s been supported historically by strong margins, dependable cash flow, and recurring revenue. FactSet is often compared with other financial information providers, and it tends to command a premium—justified by its consistent performance and deep integration into client workflows.
The stock’s price performance over the past year has been mixed. It reached highs near $495 in late 2023, only to drift down into the mid-$430s as of early May 2025. That softening has been part of a broader re-rating across high-quality tech and service companies. It’s not necessarily a reflection of internal weakness, but rather the market taking a more cautious stance after years of strong gains. Still, the long-term chart remains encouraging. Over a multi-year view, the stock has delivered steady returns with much less volatility than many other names in the tech-adjacent space.
Share repurchases have also supported performance. The company maintains a consistent buyback program, gradually reducing the share count. This has helped boost earnings per share while signaling confidence from leadership. Combined with a growing dividend, FactSet’s capital return profile remains a key part of its overall appeal.
Risks and Considerations
There are a few risks to keep on the radar. Competition in the financial analytics space continues to evolve, with both established players and new, tech-driven platforms vying for attention. While FactSet has a loyal customer base, innovation from rivals could start to chip away at that over time, especially if those rivals offer more flexible, lower-cost solutions. Staying ahead in this space means continuing to invest in technology and product depth.
Cost inflation is another issue. As the company expands its capabilities—especially through acquisitions or cloud infrastructure—expenses have naturally increased. Operating margins, while still strong, have seen some compression. The company has handled that well so far, but it’s a dynamic that needs ongoing management. If costs continue to rise faster than revenue, that could limit flexibility around dividends, buybacks, or reinvestment.
Economic sensitivity is also a factor. Many of FactSet’s clients are tied to financial markets, so if institutions begin pulling back on spending during a downturn, that could slow subscription growth. Finally, while the current debt load is manageable, the rise in total liabilities over the past couple of years does warrant monitoring. Interest costs could creep higher if rates stay elevated, which may affect future investment plans.
Final Thoughts
FactSet doesn’t try to be a market darling. It doesn’t need to. What it offers is consistency, and in today’s investing world, that’s something that carries weight. It’s a company built on serving professionals who need precision, reliability, and timely information—and it has done that job well for a long time.
The leadership team keeps things running smoothly without trying to reinvent the wheel. Financially, the business is in solid shape, with strong recurring revenue, healthy margins, and the ability to generate free cash flow year after year. The valuation reflects that dependability, and even with recent pullbacks, the long-term performance story remains intact.
Risks are present, as they are with any company, but they’re largely operational and manageable. FactSet knows its strengths and continues to play to them. It’s not a stock that’s going to surge on buzz or break out on a single quarter. But it’s built for longevity, and for those who prioritize that over speculation, it has quietly proven itself time and again.