FactSet Research Systems Inc (NYSE:FDS) Enters Strong Downtrend Before Potential Bounce

FactSet shows clear short-term selling pressure while valuation and momentum indicators hint at a possible near-term mean-reversion. Technical momentum favors sellers; fundamentals present mixed signals that complicate near-term price direction.

Recent News

On September 23, 2025 shares moved lower amid broad market weakness and above-average volume. On September 22, 2025 the stock outperformed on a strong trading day, reversing a short losing streak. On September 17, 2025 shares declined with volume above recent averages. Reports focused on daily trading performance and elevated volume, without new corporate guidance or material corporate actions.

Technical Analysis

Directional indicators (ADX / DI+ / DI-): ADX at 56.15 signals very strong trend strength; DI- at 39.85 and increasing indicates sellers controlling directional momentum while DI+ at 6.59 and decreasing confirms weakening buyer presence. That combination aligns with a pronounced bearish price bias against the current valuation.

MACD: MACD at -21.14 and declining with a signal line at -14.44 shows bearish momentum and ongoing downward pressure; no MACD crossover above the signal line appears, which keeps momentum confirmation in the sellers’ favor for the near term.

MRO (Momentum/Regression Oscillator): MRO at -28.83 sits below zero, indicating price below modeled target and signaling potential for upward reversion toward the valuation reference. That reading provides counterweight to the prevailing momentum and suggests bounce risk while sellers dominate trend strength.

RSI: RSI at 32.5 and decreasing points toward oversold territory and persistent selling pressure; the low RSI supports the possibility of short-term relief rallies but does not negate the dominant downtrend signaled by ADX and DI-.

Price vs. moving averages and bands: Closing price at $288.41 falls well beneath the 200-day average of $431.38 and below the 50-day average of $379.03, reinforcing long-term and medium-term weakness versus the valuation reference. Price sits near the 52-week low range ($288.84 low, $495.04 high), remaining close to lower Bollinger boundaries (1x lower band $303.88, 2x lower band $266.13), indicating elevated downside volatility but scope for reversion toward the mean target.

Volume and volatility context: Recent volume (about 999,930) trails the 10-day average of 1,066,377 but exceeds longer averages, and 42- and 52-week volatilities at 2% show relatively muted realized volatility versus the strong directional move; the combination suggests conviction in recent selling but potential for sharp moves if momentum changes.

 


Fundamental Analysis

Profitability and earnings: Reported EPS at $4.05 missed the estimate of $4.13 by $0.08, an EPS surprise of -1.94%. Trailing earnings growth reads -5.15% while quarter-over-quarter earnings growth shows 2,101.71% and year-over-year earnings growth shows -64.26%; those figures indicate substantial short-term fluctuation that will require further context from future reporting cycles.

Valuation multiples: Trailing PE equals 96.87x; forward PE equals 87.09x; PEG ratio stands at -18.80, with forward PEG at -16.90. Those multiples position the stock at elevated earnings multiples relative to typical market norms and reflect analysts’ expectations embedded in forward earnings estimates and long-term growth assumptions.

Revenue and cash flow: Reported revenue growth shows 0.00% with quarter-over-quarter and year-over-year revenue growth both at -100.00%, while cash flow margin and cash flow to earnings both register 0.00%. Those revenue and cash-flow figures require reconciliation with company filings; within the provided metrics, top-line momentum lacks positive contribution to near-term valuation support.

Capital structure and returns: Invested capital equals $1,256,459,000 and cost of debt equals 0.76%. Forward EPS at $4.67 sets a forward earnings base that produces the forward PE noted above. Earnings growth QoQ at 2,101.71% contrasts sharply with YoY declines, creating uneven fundamentals that the current valuation must absorb.

Valuation summary: The current valuation as determined by WMDST corresponds to a mean price target of $282.80. Market price at $288.41 sits marginally above that mean target while technicals signal stronger downside momentum; fundamentals show elevated multiples and mixed growth metrics, creating a tension between momentum-driven price action and target-based valuation.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-08-31
REPORT DATE: 2025-09-18
NEXT REPORT DATE: 2025-12-18
CASH FLOW  Begin Period Cash Flow
 Operating Cash Flow
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 End Period Cash Flow
 
INCOME STATEMENT REVENUE
 Total Revenue
 Forward Revenue
COSTS
 Cost Of Revenue
 Depreciation
 Depreciation and Amortization
 Research and Development
 Total Operating Expenses
PROFITABILITY
 Gross Profit
 EBITDA
 EBIT
 Operating Income
 Interest Income
 Interest Expense
 Net Interest Income
 Income Before Tax
 Tax Provision
 Tax Rate
 Net Income
 Net Income From Continuing Operations
EARNINGS
 EPS Estimate 4.13
 EPS Actual 4.05
 EPS Difference -0.08
 EPS Surprise -1.937 %
 Forward EPS 4.67
 
BALANCE SHEET ASSETS
 Total Assets
 Intangible Assets
 Net Tangible Assets
 Total Current Assets
 Cash and Short-Term Investments
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 Net Receivables
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 Long-Term Investments
LIABILITIES
 Accounts Payable
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 Total Current Liabilities
 Net Debt
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EQUITY
 Total Equity
 Retained Earnings
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share
 Shares Outstanding
 Revenue Per-Share
VALUATION
 Market Capitalization
 Enterprise Value
 Enterprise Multiple
Enterprise Multiple QoQ
Enterprise Multiple YoY
Enterprise Multiple IPRWA
 EV/R
CAPITAL STRUCTURE
 Asset To Equity
 Asset To Liability
 Debt To Capital
 Debt To Assets
Debt To Assets QoQ
Debt To Assets YoY
Debt To Assets IPRWA
 Debt To Equity
Debt To Equity QoQ
Debt To Equity YoY
Debt To Equity IPRWA
PRICE-BASED VALUATION
 Price To Book (P/B)
Price To Book QoQ
Price To Book YoY
Price To Book IPRWA
 Price To Earnings (P/E) 96.867
Price To Earnings QoQ -6.052 %
Price To Earnings YoY -13.849 %
Price To Earnings IPRWA
 PE/G Ratio -18.802
 Price To Sales (P/S)
Price To Sales QoQ
Price To Sales YoY
Price To Sales IPRWA
FORWARD MULTIPLES
Forward P/E 87.094
Forward PE/G -16.905
Forward P/S
EFFICIENCY OPERATIONAL
 Operating Leverage
ASSET & SALES
 Asset Turnover Ratio
Asset Turnover Ratio QoQ
Asset Turnover Ratio YoY
Asset Turnover Ratio IPRWA
 Receivables Turnover
Receivables Turnover Ratio QoQ
Receivables Turnover Ratio YoY
Receivables Turnover Ratio IPRWA
 Inventory Turnover
Inventory Turnover Ratio QoQ
Inventory Turnover Ratio YoY
Inventory Turnover Ratio IPRWA
 Days Sales Outstanding (DSO)
CASH CYCLE
 Cash Conversion Cycle Days (CCC)
Cash Conversion Cycle Days QoQ
Cash Conversion Cycle Days YoY
Cash Conversion Cycle Days IPRWA
CAPITAL DEPLOYMENT
 Cash Conversion Ratio
 CapEx To Revenue
 CapEx To Depreciation
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital
 Net Invested Capital
 Invested Capital 1.3 B
 Net Tangible Assets
 Net Working Capital
LIQUIDITY
 Cash Ratio
 Current Ratio
Current Ratio QoQ
Current Ratio YoY
Current Ratio IPRWA
 Quick Ratio
Quick Ratio QoQ
Quick Ratio YoY
Quick Ratio IPRWA
COVERAGE & LEVERAGE
 Debt To EBITDA
 Cost Of Debt 0.76 %
 Interest Coverage Ratio
Interest Coverage Ratio QoQ
Interest Coverage Ratio YoY
Interest Coverage Ratio IPRWA
 Operating Cash Flow Ratio
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO)
DIVIDENDS
 Dividend Coverage Ratio
 Dividend Payout Ratio
 Dividend Rate
 Dividend Yield
PERFORMANCE GROWTH
 Asset Growth Rate
 Revenue Growth 0.0 %
Revenue Growth QoQ -100.0 %
Revenue Growth YoY -100.0 %
Revenue Growth IPRWA
 Earnings Growth -5.152 %
Earnings Growth QoQ 2101.709 %
Earnings Growth YoY -64.262 %
Earnings Growth IPRWA
MARGINS
 Gross Margin
Gross Margin QoQ
Gross Margin YoY
Gross Margin IPRWA
 EBIT Margin
EBIT Margin QoQ
EBIT Margin YoY
EBIT Margin IPRWA
 Return On Sales (ROS)
Return On Sales QoQ
Return On Sales YoY
Return On Sales IPRWA
CASH FLOW
 Free Cash Flow (FCF)
 Free Cash Flow Yield
Free Cash Flow Yield QoQ
Free Cash Flow Yield YoY
Free Cash Flow Yield IPRWA
 Free Cash Growth
Free Cash Growth QoQ
Free Cash Growth YoY
Free Cash Growth IPRWA
 Free Cash To Net Income
 Cash Flow Margin 0.0 %
 Cash Flow To Earnings 0.0
VALUE & RETURNS
 Economic Value Added
 Return On Assets (ROA)
Return On Assets QoQ
Return On Assets YoY
Return On Assets IPRWA
 Return On Capital Employed (ROCE)
 Return On Equity (ROE)
Return On Equity QoQ
Return On Equity YoY
Return On Equity IPRWA
 DuPont ROE
 Return On Invested Capital (ROIC)
Return On Invested Capital QoQ
Return On Invested Capital YoY
Return On Invested Capital IPRWA

Six-Week Outlook

Near-term price action likely remains governed by strong selling momentum. ADX at 56.15 and a rising DI- produce continued downward pressure, while MACD declining confirms bearish momentum. Countervailing signals include a negative MRO suggesting the price sits below the modeled target and an RSI near 32.5 pointing toward oversold conditions; both indicate a plausible mean-reversion attempt within a broader downtrend. Expect volatile chop with a seller’s bias until momentum indicators show MACD stabilization or a DI- peak-and-reverse event. Monitor convergence between price and the $282.80 mean target for the most relevant reference to valuation-driven reactions.

About FactSet Research Systems Inc.

FactSet Research Systems Inc. (NYSE:FDS) is a leading provider of integrated financial information and analytical applications for the global investment community. With a heritage dating back to 1978, FactSet delivers a comprehensive suite of solutions that empower financial professionals to make informed investment decisions. Headquartered in Norwalk, Connecticut, the company extends its reach worldwide, offering a robust digital platform that includes workstations, portfolio analytics, and enterprise data solutions. FactSet’s offerings are designed to enhance workflow efficiency and provide deep insights into market trends, securities, and industries. The company’s subscription-based model grants access to a wealth of financial data and market intelligence, enabling clients to conduct thorough research, analyze investment opportunities, and effectively manage portfolios. FactSet’s innovative solutions are accessible through customizable desktop and mobile platforms, data feeds, and cloud-based interfaces, ensuring seamless integration into clients’ existing systems. Catering to a diverse clientele, FactSet serves institutional asset managers, bankers, wealth managers, hedge funds, corporate users, and private equity professionals. By continuously evolving its technology and services, FactSet remains at the forefront of the financial industry, committed to delivering unparalleled value and insights to its clients.



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