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FIRST ADVANTAGE CORP (FA) Stock Fundamental Analysis

USA - NASDAQ:FA - US31846B1089 - Common Stock

13.93 USD
-0.13 (-0.92%)
Last: 10/17/2025, 2:58:32 PM
Fundamental Rating

3

Taking everything into account, FA scores 3 out of 10 in our fundamental rating. FA was compared to 82 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.


Dividend Valuation Growth Profitability Health

2

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.
The reported net income has been mixed in the past 5 years: FA reported negative net income in multiple 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

The Return On Assets of FA (-3.88%) is worse than 70.73% of its industry peers.
FA has a worse Return On Equity (-11.55%) than 71.95% of its industry peers.
Industry RankSector 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
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

The Gross Margin of FA (46.48%) is comparable to the rest of the industry.
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 RankSector 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%
FA Yearly Profit, Operating, Gross MarginsFA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 20 40

2

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
The debt/assets ratio for FA is higher compared to a year ago.
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

FA has an Altman-Z score of 0.88. 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 (0.88) than 75.61% 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 81.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF N/A
Altman-Z 0.88
ROIC/WACCN/A
WACC7.12%
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

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 73.17% 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 73.17% of its industry peers.
Industry RankSector Rank
Current Ratio 1.98
Quick Ratio 1.98
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

6

3. Growth

3.1 Past

The earnings per share for FA have decreased by -7.37% in the last year.
The Revenue has grown by 65.34% in the past year. This is a very strong growth!
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)-7.37%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%28.57%
Revenue 1Y (TTM)65.34%
Revenue growth 3Y6.49%
Revenue growth 5Y12.29%
Sales Q2Q%111.67%

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 15.75% on average per year.
FA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.91% yearly.
EPS Next Y22.16%
EPS Next 2Y21.82%
EPS Next 3Y15.75%
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.
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

5

4. Valuation

4.1 Price/Earnings Ratio

FA is valuated correctly with a Price/Earnings ratio of 15.83.
FA's Price/Earnings ratio is a bit cheaper when compared to the industry. FA is cheaper than 68.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.29. FA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 11.45, which indicates a very decent valuation of FA.
Based on the Price/Forward Earnings ratio, FA is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
FA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.83
Fwd PE 11.45
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FA indicates a slightly more expensive valuation: FA is more expensive than 63.41% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 23.92
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 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 15.75% in the coming years.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y21.82%
EPS Next 3Y15.75%

0

5. Dividend

5.1 Amount

No dividends for FA!.
Industry RankSector Rank
Dividend Yield N/A

FIRST ADVANTAGE CORP

NASDAQ:FA (10/17/2025, 2:58:32 PM)

13.93

-0.13 (-0.92%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)08-07 2025-08-07/bmo
Earnings (Next)11-05 2025-11-05/bmo
Inst Owners56.93%
Inst Owner Change0%
Ins Owners2.67%
Ins Owner Change0.71%
Market Cap2.42B
Analysts77.78
Price Target19.21 (37.9%)
Short Float %14.46%
Short Ratio13.77
Dividend
Industry RankSector 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)0%
PT rev (3m)0%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)3.28%
EPS NY rev (1m)-0.83%
EPS NY rev (3m)3.93%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.64%
Valuation
Industry RankSector Rank
PE 15.83
Fwd PE 11.45
P/S 1.94
P/FCF N/A
P/OCF 165.55
P/B 1.87
P/tB N/A
EV/EBITDA 23.92
EPS(TTM)0.88
EY6.32%
EPS(NY)1.22
Fwd EY8.74%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)0.08
OCFY0.6%
SpS7.19
BVpS7.47
TBVpS-10.17
PEG (NY)0.71
PEG (5Y)N/A
Profitability
Industry RankSector 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
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 Turnover0.32
Health
Industry RankSector 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 0.88
F-Score2
WACC7.12%
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)-7.37%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%28.57%
EPS Next Y22.16%
EPS Next 2Y21.82%
EPS Next 3Y15.75%
EPS Next 5YN/A
Revenue 1Y (TTM)65.34%
Revenue growth 3Y6.49%
Revenue growth 5Y12.29%
Sales Q2Q%111.67%
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%