FactSet Research Systems Inc.FDS

Morningstar Rating

Stock Research and Analysis

by Swami Shanmugasundaram

FactSet Research Systems is a leading provider of financial data to the global investment industry. The company capitalized on the demand for financial information by consolidating and distributing financial data to various end users. While the current Read more

Bulls Say

FactSet derives more than 95% of its revenue from existing clients, and the company continuously focuses on enhancing its client relationship, giving it substantial recurring revenue opportunities.

The company's unleveraged balance sheet gives it the flexibility to use acquisitions to expand its service offerings and plug gaps in its portfolio of products and services.

Almost a third of FactSet's revenue in fiscal 2009 came from its international operations, providing a good source of diversification against a downturn in any one particular economy. Read more

Bears Say

FactSet derives about a third of its revenue through soft-dollar arrangements with investment managers. Increased regulatory scrutiny of this form of payment could have a detrimental impact on FactSet's results.

Most of FactSet's customers are still affected by the downturn in the financial services sector, potentially hindering FactSet's growth prospects.

Although FactSet has carved a leadership position in the financial information market, it still faces significant competition from larger players (Thomson Reuters TRI and Bloomberg) with greater resources. Read more

Strategy

FactSet's strategy is to expand its portfolio of products and services through in-house developments and acquisitions. It also aims to boost its prospects by getting existing customers to buy more products Read more

Management

Chairman and CEO Philip A. Hadley has been at the helm since 2000. A company veteran of more than 20 years, Hadley has held several executive positions including vice president of sales, senior vice president, and director of marketing and sales. Most Read more

Profile

FactSet, based in Norwalk, Conn., is a leading provider of financial and economic information to the global investment industry. The company collates data related to tens Read more

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