FIRST ADVANTAGE CORP (FA) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:FA - US31846B1089 - Common Stock

12.91 USD

-0.52 (-3.87%)

Last: 1/28/2026, 2:10:02 PM

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 is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

1.1 Basic Checks

In the past year FA was profitable.
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.

1.2 Ratios

FA's Return On Assets of -3.60% is on the low side compared to the rest of the industry. FA is outperformed by 64.37% of its industry peers.
The Return On Equity of FA (-10.65%) is worse than 67.82% of its industry peers.
FA has a Return On Invested Capital of 0.15%. This is in the lower half of the industry: FA underperforms 64.37% of its industry peers.

		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.
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%

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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.
FA has more shares outstanding than it did 1 year ago.
FA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FA has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.96, we must say that FA is in the distress zone and has some risk of bankruptcy.
FA's Altman-Z score of 0.96 is on the low side compared to the rest of the industry. FA is outperformed by 68.97% of its industry peers.
FA has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external 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 74.71% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.62
Debt/FCF	N/A
Altman-Z	0.96

ROIC/WACC0.02

WACC7.36%

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 Current ratio of 2.26. This is amongst the best in the industry. FA outperforms 80.46% of its industry peers.
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.
Looking at the Quick ratio, with a value of 2.26, FA belongs to the top of the industry, outperforming 80.46% of the companies in the same industry.

		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%.
Looking at the last year, FA shows a very strong growth in Revenue. The Revenue has grown by 93.41%.
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)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 15.25% 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 26.52% on average per year.

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

A Price/Earnings ratio of 14.03 indicates a correct valuation of FA.
Based on the Price/Earnings ratio, FA is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
FA is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
FA is valuated reasonably with a Price/Forward Earnings ratio of 10.56.
Based on the Price/Forward Earnings ratio, FA is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.95. FA is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	14.03
Fwd PE	10.56

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	16.99

4.3 Compensation for Growth

The 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.