Reasonable Growth, Debt Levels, and a High ROIC Make FIRSTCASH HOLDINGS INC (NASDAQ:FCFS) Appealing to Quality Investors.

In this article we will dive into FIRSTCASH HOLDINGS INC (NASDAQ:FCFS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed FIRSTCASH HOLDINGS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NASDAQ:FCFS highlighted

• FIRSTCASH HOLDINGS INC has demonstrated significant revenue growth over the past 5 years, with a 8.92% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a notable ROIC excluding cash and goodwill at 17.82%, FIRSTCASH HOLDINGS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• FIRSTCASH HOLDINGS INC maintains a healthy Debt/Free Cash Flow Ratio of 3.5, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• FIRSTCASH HOLDINGS INC exhibits impressive Profit Quality (5-year) with a 148.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• FIRSTCASH HOLDINGS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 12.69%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• The EBIT 5-year growth of FIRSTCASH HOLDINGS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

FCFS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 52 industry peers in the Consumer Finance industry. FCFS gets an excellent profitability rating and is at the same time showing great financial health properties. FCFS is quite expensive at the moment. It does show a decent growth rate. This makes FCFS very considerable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of FCFS

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.