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FIRST ADVANTAGE CORP (FA) Stock Fundamental Analysis

NASDAQ:FA - Nasdaq - US31846B1089 - Common Stock - Currency: USD

14.05  -0.23 (-1.61%)

After market: 14.05 0 (0%)

Fundamental Rating

3

FA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. Both the profitability and financial health of FA have multiple concerns. FA is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

FA had positive earnings in the past year.
FA had a positive operating cash flow in the past year.
In multiple years FA reported negative net income over the last 5 years.
FA had a positive operating cash flow in each of the past 5 years.
FA Yearly Net Income VS EBIT VS OCF VS FCFFA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 0 100M -100M 200M

1.2 Ratios

FA has a Return On Assets of -2.81%. This is in the lower half of the industry: FA underperforms 74.39% of its industry peers.
Looking at the Return On Equity, with a value of -8.44%, FA is doing worse than 74.39% of the companies in the same industry.
Industry RankSector Rank
ROA -2.81%
ROE -8.44%
ROIC 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
FA Yearly ROA, ROE, ROICFA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 10 -10 -20 -30

1.3 Margins

FA has a Gross Margin of 47.81%. This is comparable to the rest of the industry: FA outperforms 59.76% of its industry peers.
In the last couple of years the Gross Margin of FA has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for FA so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 47.81%
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%
FA Yearly Profit, Operating, Gross MarginsFA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 40

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2

2. Health

2.1 Basic Checks

FA does not have a ROIC to compare to the WACC, probably because it is not profitable.
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.
FA Yearly Shares OutstandingFA Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 50M 100M 150M
FA Yearly Total Debt VS Total AssetsFA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

Based on the Altman-Z score of 0.75, we must say that FA is in the distress zone and has some risk of bankruptcy.
FA has a worse Altman-Z score (0.75) than 68.29% 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's Debt to Equity ratio of 1.62 is on the low side compared to the rest of the industry. FA is outperformed by 80.49% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF N/A
Altman-Z 0.75
ROIC/WACCN/A
WACC7.96%
FA Yearly LT Debt VS Equity VS FCFFA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

A Current Ratio of 1.90 indicates that FA should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.90, FA is doing good in the industry, outperforming 74.39% of the companies in the same industry.
FA has a Quick Ratio of 1.90. This is a normal value and indicates that FA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.90, FA is in the better half of the industry, outperforming 74.39% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.9
Quick Ratio 1.9
FA Yearly Current Assets VS Current LiabilitesFA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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6

3. Growth

3.1 Past

FA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.00%.
The Revenue has grown by 12.63% in the past year. This is quite good.
FA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.29% yearly.
EPS 1Y (TTM)-18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-37.93%
Revenue 1Y (TTM)12.63%
Revenue growth 3Y6.49%
Revenue growth 5Y12.29%
Sales Q2Q%51.62%

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 18.51% on average per year.
The Revenue is expected to grow by 26.96% on average over the next years. This is a very strong growth
EPS Next Y12.39%
EPS Next 2Y18.5%
EPS Next 3Y18.51%
EPS Next 5YN/A
Revenue Next Year77.01%
Revenue Next 2Y37.55%
Revenue Next 3Y26.96%
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.
FA Yearly Revenue VS EstimatesFA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
FA Yearly EPS VS EstimatesFA Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 17.13 indicates a rather expensive valuation of FA.
FA's Price/Earnings ratio is in line with the industry average.
FA is valuated rather cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.24, the valuation of FA can be described as correct.
Based on the Price/Forward Earnings ratio, FA is valued a bit cheaper than 67.07% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FA to the average of the S&P500 Index (21.38), we can say FA is valued slightly cheaper.
Industry RankSector Rank
PE 17.13
Fwd PE 15.24
FA Price Earnings VS Forward Price EarningsFA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

71.95% of the companies in the same industry are cheaper than FA, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 53.3
FA Per share dataFA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 -10

4.3 Compensation for Growth

FA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FA's earnings are expected to grow with 18.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y18.5%
EPS Next 3Y18.51%

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0

5. Dividend

5.1 Amount

FA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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FIRST ADVANTAGE CORP

NASDAQ:FA (4/25/2025, 8:04:06 PM)

After market: 14.05 0 (0%)

14.05

-0.23 (-1.61%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-27 2025-02-27/bmo
Earnings (Next)05-08 2025-05-08/bmo
Inst Owners50.86%
Inst Owner Change0.01%
Ins Owners2.33%
Ins Owner Change0.08%
Market Cap2.44B
Analysts80
Price Target19.72 (40.36%)
Short Float %9.63%
Short Ratio5.44
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP-0.23%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.1%
Min EPS beat(2)-22.44%
Max EPS beat(2)0.24%
EPS beat(4)1
Avg EPS beat(4)-6.94%
Min EPS beat(4)-22.44%
Max EPS beat(4)0.24%
EPS beat(8)2
Avg EPS beat(8)-4.4%
EPS beat(12)4
Avg EPS beat(12)-3.29%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.78%
Min Revenue beat(2)-5.38%
Max Revenue beat(2)-2.18%
Revenue beat(4)0
Avg Revenue beat(4)-3.42%
Min Revenue beat(4)-5.38%
Max Revenue beat(4)-2.18%
Revenue beat(8)0
Avg Revenue beat(8)-3.22%
Revenue beat(12)1
Avg Revenue beat(12)-3.05%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-7.94%
PT rev (3m)-11.45%
EPS NQ rev (1m)-1.08%
EPS NQ rev (3m)-32.63%
EPS NY rev (1m)-10.29%
EPS NY rev (3m)-10.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.28%
Revenue NY rev (1m)5.3%
Revenue NY rev (3m)-3.74%
Valuation
Industry RankSector Rank
PE 17.13
Fwd PE 15.24
P/S 2.83
P/FCF N/A
P/OCF 86.46
P/B 1.87
P/tB N/A
EV/EBITDA 53.3
EPS(TTM)0.82
EY5.84%
EPS(NY)0.92
Fwd EY6.56%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)0.16
OCFY1.16%
SpS4.96
BVpS7.53
TBVpS-10.41
PEG (NY)1.38
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.81%
ROE -8.44%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 47.81%
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.22
Health
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF N/A
Debt/EBITDA 25.39
Cap/Depr 22.11%
Cap/Sales 3.75%
Interest Coverage N/A
Cash Conversion 33.75%
Profit Quality N/A
Current Ratio 1.9
Quick Ratio 1.9
Altman-Z 0.75
F-Score2
WACC7.96%
ROIC/WACCN/A
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)-18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-37.93%
EPS Next Y12.39%
EPS Next 2Y18.5%
EPS Next 3Y18.51%
EPS Next 5YN/A
Revenue 1Y (TTM)12.63%
Revenue growth 3Y6.49%
Revenue growth 5Y12.29%
Sales Q2Q%51.62%
Revenue Next Year77.01%
Revenue Next 2Y37.55%
Revenue Next 3Y26.96%
Revenue Next 5YN/A
EBIT growth 1Y-176.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year375.17%
EBIT Next 3Y82.89%
EBIT Next 5YN/A
FCF growth 1Y-103.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-82.68%
OCF growth 3Y-42.55%
OCF growth 5Y-17%