FIRST ADVANTAGE CORP (FA) Stock Fundamental Analysis
USA - NASDAQ:FA - US31846B1089 - Common Stock
13.31 USD
-0.49 (-3.55%)
13.31 USD
0 (0%)
FA gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 87 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
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.
FA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FA has a Return On Assets of -3.88%. This is in the lower half of the industry: FA underperforms 66.67% of its industry peers.
FA has a worse Return On Equity (-11.55%) than 70.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.88% | ||
| ROE | -11.55% | ||
| 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
1.3 Margins
FA has a Gross Margin of 46.48%. This is in the better half of the industry: FA outperforms 62.07% of its industry peers.
In the last couple of years the Gross Margin of FA has remained more or less at the same level.
FA does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 46.48% |
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
FA does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for FA has been increased compared to 1 year ago.
Compared to 5 years ago, FA has more shares outstanding
FA has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that FA is in the distress zone and has some risk of bankruptcy.
FA has a Altman-Z score of 0.87. This is in the lower half of the industry: FA underperforms 71.26% 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.
With a Debt to Equity ratio value of 1.62, FA is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.87 |
ROIC/WACCN/A
WACC6.97%
2.3 Liquidity
FA has a Current Ratio of 1.98. This is a normal value and indicates that FA is financially healthy and should not expect problems in meeting its short term obligations.
FA has a better Current ratio (1.98) than 74.71% of its industry peers.
FA has a Quick Ratio of 1.98. This is a normal value and indicates that FA is financially healthy and should not expect problems in meeting its short term obligations.
FA has a better Quick ratio (1.98) than 74.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The earnings per share for FA have decreased by -1.08% in the last year.
FA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.63%.
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)12.63%
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.
The Revenue is expected to grow by 26.91% on average over the next years. This is a very strong growth
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
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.
4. Valuation
4.1 Price/Earnings Ratio
FA is valuated correctly with a Price/Earnings ratio of 14.47.
FA's Price/Earnings ratio is a bit cheaper when compared to the industry. FA is cheaper than 72.41% of the companies in the same industry.
When comparing the Price/Earnings ratio of FA to the average of the S&P500 Index (25.83), we can say FA is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.95, the valuation of FA can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FA indicates a somewhat cheap valuation: FA is cheaper than 75.86% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FA to the average of the S&P500 Index (32.68), we can say FA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FA is valued a bit more expensive than the industry average as 62.07% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.67 |
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)0.64
PEG (5Y)N/A
EPS Next 2Y21.76%
EPS Next 3Y15.92%
5. Dividend
5.1 Amount
FA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.31
-0.49 (-3.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners56.93%
Inst Owner Change-0.18%
Ins Owners2.67%
Ins Owner Change0.84%
Market Cap2.32B
Revenue(TTM)860.21M
Net Income(TTM)-150.11M
Analysts77.78
Price Target18.7 (40.5%)
Short Float %15.92%
Short Ratio16.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP-0.1%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.01%
Min EPS beat(2)10.51%
Max EPS beat(2)25.51%
EPS beat(4)3
Avg EPS beat(4)3.45%
Min EPS beat(4)-22.44%
Max EPS beat(4)25.51%
EPS beat(8)3
Avg EPS beat(8)-0.02%
EPS beat(12)5
Avg EPS beat(12)-0.59%
EPS beat(16)8
Avg EPS beat(16)4.87%
Revenue beat(2)0
Avg Revenue beat(2)-0.25%
Min Revenue beat(2)-0.48%
Max Revenue beat(2)-0.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-5.38%
Max Revenue beat(4)-0.02%
Revenue beat(8)0
Avg Revenue beat(8)-2.96%
Revenue beat(12)0
Avg Revenue beat(12)-3.06%
Revenue beat(16)3
Avg Revenue beat(16)-1.02%
PT rev (1m)-2.65%
PT rev (3m)-2.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.28%
EPS NY rev (1m)0.48%
EPS NY rev (3m)4.44%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 10.95 | ||
| P/S | 1.85 | ||
| P/FCF | N/A | ||
| P/OCF | 158.18 | ||
| P/B | 1.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.67 |
EPS(TTM)0.92
EY6.91%
EPS(NY)1.22
Fwd EY9.13%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)0.08
OCFY0.63%
SpS7.19
BVpS7.47
TBVpS-10.17
PEG (NY)0.64
PEG (5Y)N/A
Graham Number12.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.88% | ||
| ROE | -11.55% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 46.48% | ||
| 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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 11.47 | ||
| Cap/Depr | 20.17% | ||
| Cap/Sales | 3.38% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 7.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 0.87 |
F-Score2
WACC6.97%
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)-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)12.63%
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-142.43%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year388.72%
EBIT Next 3Y80.9%
EBIT Next 5YN/A
FCF growth 1Y-117.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-92.22%
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 14.47 and the Price/Book (PB) ratio is 1.78.
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.