FIRST ADVANTAGE CORP (FA) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:FA • US31846B1089

13.12 USD

+0.07 (+0.54%)

Last: Jan 30, 2026, 10:13 AM

Fundamental Rating

Overall FA gets a fundamental rating of 3 out of 10. We evaluated FA against 87 industry peers in the Professional Services industry. FA has a bad profitability rating. Also its financial health evaluation is rather negative. FA has a correct valuation and a medium growth rate.

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1. Profitability

1.1 Basic Checks

FA had positive earnings in the past year.
In the past year FA had a positive cash flow from operations.
In multiple years FA reported negative net income over the last 5 years.
In the past 5 years FA always reported a positive cash flow from operatings.

1.2 Ratios

With a Return On Assets value of -3.60%, FA is not doing good in the industry: 64.37% of the companies in the same industry are doing better.
With a Return On Equity value of -10.65%, FA is not doing good in the industry: 67.82% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 0.15%, FA is not doing good in the industry: 64.37% of the companies in the same industry are doing better.

		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's Operating Margin of 0.47% is on the low side compared to the rest of the industry. FA is outperformed by 62.07% of its industry peers.
With a decent Gross Margin value of 45.88%, FA is doing good in the industry, outperforming 63.22% of the companies in the same industry.
FA's Gross Margin has been stable in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

FA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FA has more shares outstanding
The number of shares outstanding for FA has been increased compared to 5 years ago.
Compared to 1 year ago, FA has a worse debt to assets ratio.

2.2 Solvency

FA has an Altman-Z score of 0.94. This is a bad value and indicates that FA is not financially healthy and even has some risk of bankruptcy.
FA has a worse Altman-Z score (0.94) than 68.97% of its industry peers.
A Debt/Equity ratio of 1.62 is on the high side and indicates that FA has dependencies on debt financing.
FA has a worse Debt to Equity ratio (1.62) than 74.71% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.62
Debt/FCF	N/A
Altman-Z	0.94

ROIC/WACC0.02

WACC7.37%

2.3 Liquidity

A Current Ratio of 2.26 indicates that FA has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.26, FA belongs to the best of the industry, outperforming 80.46% of the companies in the same industry.
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.
FA has a better Quick ratio (2.26) than 80.46% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.26
Quick Ratio	2.26

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WACC

Debt/Equity

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Altman-Z score

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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%.
FA shows a strong growth in Revenue. In the last year, the Revenue has grown by 93.41%.
The Revenue has been growing by 12.29% on average over the past years. This is quite good.

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

FA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.25% yearly.
FA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.52% yearly.

EPS Next Y26.12%

EPS Next 2Y22.09%

EPS Next 3Y15.25%

EPS Next 5YN/A

Revenue Next Year79.6%

Revenue Next 2Y37.34%

Revenue Next 3Y26.52%

Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

FA is valuated correctly with a Price/Earnings ratio of 14.26.
Compared to the rest of the industry, the Price/Earnings ratio of FA indicates a somewhat cheap valuation: FA is cheaper than 77.01% of the companies listed in the same industry.
FA is valuated rather cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.73, which indicates a very decent valuation of FA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FA indicates a rather cheap valuation: FA is cheaper than 82.76% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, FA is valued rather cheaply.

		Industry Rank	Sector Rank
PE	14.26
Fwd PE	10.73

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as FA.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	16.72

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.
A more expensive valuation may be justified as FA's earnings are expected to grow with 15.25% in the coming years.