FIRST ADVANTAGE CORP (FA) Stock Fundamental Analysis
USA - NASDAQ:FA - US31846B1089 - Common Stock
13.19 USD
+0.06 (+0.46%)
13.19 USD
0 (0%)
Overall FA gets a fundamental rating of 3 out of 10. We evaluated FA against 86 industry peers in the Professional Services industry. Both the profitability and financial health of FA have multiple concerns. FA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FA was profitable.
In the past year FA had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: FA reported negative net income in multiple years.
In the past 5 years FA always reported a positive cash flow from operatings.
1.2 Ratios
FA has a Return On Assets of -3.60%. This is in the lower half of the industry: FA underperforms 65.12% of its industry peers.
FA has a worse Return On Equity (-10.65%) than 70.93% of its industry peers.
FA has a Return On Invested Capital of 0.15%. This is in the lower half of the industry: FA underperforms 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.6% | ||
| ROE | -10.65% | ||
| ROIC | 0.15% |
ROA(3y)0.97%
ROA(5y)-0.2%
ROE(3y)0.47%
ROE(5y)-1.55%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
FA has a worse Operating Margin (0.47%) than 62.79% of its industry peers.
FA has a Gross Margin of 45.88%. This is comparable to the rest of the industry: FA outperforms 58.14% of its industry peers.
In the last couple of years the Gross Margin of FA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.47% | ||
| PM (TTM) | N/A | ||
| GM | 45.88% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.84%
GM growth 5Y-0.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FA is destroying value.
FA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FA has more shares outstanding
Compared to 1 year ago, FA has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that FA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.95, FA is doing worse than 70.93% of the companies in the same industry.
FA has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of FA (1.62) is worse than 80.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.02
WACC6.91%
2.3 Liquidity
A Current Ratio of 2.26 indicates that FA has no problem at all paying its short term obligations.
FA has a better Current ratio (2.26) than 79.07% of its industry peers.
FA has a Quick Ratio of 2.26. This indicates that FA is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.26, FA is doing good in the industry, outperforming 79.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
FA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.08%.
Looking at the last year, FA shows a very strong growth in Revenue. The Revenue has grown by 93.41%.
Measured over the past years, FA shows a quite strong growth in Revenue. The Revenue has been growing by 12.29% on average per year.
EPS 1Y (TTM)-1.08%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%15.38%
Revenue 1Y (TTM)93.41%
Revenue growth 3Y6.49%
Revenue growth 5Y12.29%
Sales Q2Q%105.48%
3.2 Future
Based on estimates for the next years, FA will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.92% on average per year.
Based on estimates for the next years, FA will show a very strong growth in Revenue. The Revenue will grow by 26.91% on average per year.
EPS Next Y22.75%
EPS Next 2Y21.76%
EPS Next 3Y15.92%
EPS Next 5YN/A
Revenue Next Year78.7%
Revenue Next 2Y37.59%
Revenue Next 3Y26.91%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FA is valuated correctly with a Price/Earnings ratio of 14.34.
FA's Price/Earnings ratio is a bit cheaper when compared to the industry. FA is cheaper than 73.26% of the companies in the same industry.
FA is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.85 indicates a reasonable valuation of FA.
Based on the Price/Forward Earnings ratio, FA is valued a bit cheaper than 79.07% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. FA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 10.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.81 |
4.3 Compensation for Growth
FA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FA's earnings are expected to grow with 15.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.63
PEG (5Y)N/A
EPS Next 2Y21.76%
EPS Next 3Y15.92%
5. Dividend
5.1 Amount
No dividends for FA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.19
+0.06 (+0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners56.93%
Inst Owner Change0.2%
Ins Owners2.67%
Ins Owner Change0.97%
Market Cap2.29B
Revenue(TTM)1.46B
Net Income(TTM)-138.66M
Analysts77.78
Price Target18.7 (41.77%)
Short Float %15.92%
Short Ratio16.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP-0.11%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.23%
Min EPS beat(2)3.95%
Max EPS beat(2)10.51%
EPS beat(4)3
Avg EPS beat(4)4.38%
Min EPS beat(4)-22.44%
Max EPS beat(4)25.51%
EPS beat(8)4
Avg EPS beat(8)0.69%
EPS beat(12)6
Avg EPS beat(12)0.45%
EPS beat(16)8
Avg EPS beat(16)2.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-2.18%
Max Revenue beat(4)-0.02%
Revenue beat(8)0
Avg Revenue beat(8)-2.83%
Revenue beat(12)0
Avg Revenue beat(12)-2.75%
Revenue beat(16)2
Avg Revenue beat(16)-1.7%
PT rev (1m)-2.65%
PT rev (3m)-2.65%
EPS NQ rev (1m)-1.38%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)0.48%
EPS NY rev (3m)4.44%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 10.85 | ||
| P/S | 1.57 | ||
| P/FCF | N/A | ||
| P/OCF | 52.73 | ||
| P/B | 1.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.81 |
EPS(TTM)0.92
EY6.97%
EPS(NY)1.22
Fwd EY9.22%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.25
OCFY1.9%
SpS8.4
BVpS7.48
TBVpS-9.94
PEG (NY)0.63
PEG (5Y)N/A
Graham Number12.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.6% | ||
| ROE | -10.65% | ||
| ROCE | 0.19% | ||
| ROIC | 0.15% | ||
| ROICexc | 0.16% | ||
| ROICexgc | 1.44% | ||
| OM | 0.47% | ||
| PM (TTM) | N/A | ||
| GM | 45.88% | ||
| FCFM | N/A |
ROA(3y)0.97%
ROA(5y)-0.2%
ROE(3y)0.47%
ROE(5y)-1.55%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.84%
GM growth 5Y-0.52%
F-Score2
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.46 | ||
| Cap/Depr | 19.8% | ||
| Cap/Sales | 3.28% | ||
| Interest Coverage | 0.04 | ||
| Cash Conversion | 17.5% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 0.95 |
F-Score2
WACC6.91%
ROIC/WACC0.02
Cap/Depr(3y)21.38%
Cap/Depr(5y)18.74%
Cap/Sales(3y)3.63%
Cap/Sales(5y)3.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.08%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%15.38%
EPS Next Y22.75%
EPS Next 2Y21.76%
EPS Next 3Y15.92%
EPS Next 5YN/A
Revenue 1Y (TTM)93.41%
Revenue growth 3Y6.49%
Revenue growth 5Y12.29%
Sales Q2Q%105.48%
Revenue Next Year78.7%
Revenue Next 2Y37.59%
Revenue Next 3Y26.91%
Revenue Next 5YN/A
EBIT growth 1Y-85.48%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year388.72%
EBIT Next 3Y80.9%
EBIT Next 5YN/A
FCF growth 1Y-102.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-75.29%
OCF growth 3Y-42.55%
OCF growth 5Y-17%
FIRST ADVANTAGE CORP / FA FAQ
What is the fundamental rating for FA stock?
ChartMill assigns a fundamental rating of 3 / 10 to FA.
Can you provide the valuation status for FIRST ADVANTAGE CORP?
ChartMill assigns a valuation rating of 5 / 10 to FIRST ADVANTAGE CORP (FA). This can be considered as Fairly Valued.
Can you provide the profitability details for FIRST ADVANTAGE CORP?
FIRST ADVANTAGE CORP (FA) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for FA stock?
The Price/Earnings (PE) ratio for FIRST ADVANTAGE CORP (FA) is 14.34 and the Price/Book (PB) ratio is 1.76.
Can you provide the expected EPS growth for FA stock?
The Earnings per Share (EPS) of FIRST ADVANTAGE CORP (FA) is expected to grow by 22.75% in the next year.