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%)
We assign a fundamental rating of 3 out of 10 to FA. FA was compared to 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.
FA had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of -3.60%, FA is doing worse than 65.12% of the companies in the same industry.
With a Return On Equity value of -10.65%, FA is not doing good in the industry: 70.93% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 0.15%, FA is doing worse than 65.12% of the companies in the same industry.
| 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 62.79% of its industry peers.
FA's Gross Margin of 45.88% is in line compared 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FA is destroying value.
Compared to 1 year ago, FA has more shares outstanding
FA has more shares outstanding than it did 5 years ago.
FA has a worse debt/assets ratio than last year.
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.
The Altman-Z score of FA (0.95) is worse than 70.93% 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 Debt to Equity ratio of 1.62. This is amonst the worse of the industry: FA underperforms 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.
A Quick Ratio of 2.26 indicates that FA has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.26, FA is in the better half of 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%.
FA shows a strong growth in Revenue. In the last year, the Revenue has grown by 93.41%.
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)-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
The Earnings Per Share is expected to grow by 15.92% on average over the next years. This is quite good.
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
A Price/Earnings ratio of 14.34 indicates a correct valuation of FA.
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.
Compared to an average S&P500 Price/Earnings ratio of 25.89, FA is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 10.85, the valuation of FA can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FA indicates a somewhat cheap valuation: FA is cheaper than 79.07% of the companies listed in the same industry.
FA is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| 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.
A more expensive valuation may be justified as FA's earnings are expected to grow with 15.92% in the coming years.
PEG (NY)0.63
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 |
13.19
+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 Change8.25%
Ins Owners2.67%
Ins Owner Change0.79%
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.