Logo image of FA

FIRST ADVANTAGE CORP (FA) Stock Fundamental Analysis

NASDAQ:FA - Nasdaq - US31846B1089 - Common Stock

18.6  +0.37 (+2.03%)

After market: 18.6 0 (0%)

Fundamental Rating

4

FA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. The financial health of FA is average, but there are quite some concerns on its profitability. FA is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

3

1. Profitability

1.1 Basic Checks

In the past year FA was profitable.
FA had a positive operating cash flow in the past year.
FA had positive earnings in 4 of the past 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 0 50M -50M 100M 150M 200M

1.2 Ratios

The Return On Assets of FA (0.30%) is worse than 63.29% of its industry peers.
With a Return On Equity value of 0.53%, FA is not doing good in the industry: 63.29% of the companies in the same industry are doing better.
FA has a Return On Invested Capital of 2.37%. This is in the lower half of the industry: FA underperforms 63.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FA is significantly below the industry average of 13.48%.
Industry RankSector Rank
ROA 0.3%
ROE 0.53%
ROIC 2.37%
ROA(3y)2.19%
ROA(5y)1.62%
ROE(3y)3.76%
ROE(5y)N/A
ROIC(3y)3.6%
ROIC(5y)N/A
FA Yearly ROA, ROE, ROICFA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 10 -10 -20 -30

1.3 Margins

The Profit Margin of FA (0.65%) is worse than 62.03% of its industry peers.
The Operating Margin of FA (6.31%) is comparable to the rest of the industry.
FA has a Gross Margin of 49.48%. This is comparable to the rest of the industry: FA outperforms 59.49% 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 RankSector Rank
OM 6.31%
PM (TTM) 0.65%
GM 49.48%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.37%
GM growth 5YN/A
FA Yearly Profit, Operating, Gross MarginsFA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 20 40

More info and screens

6

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 less 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 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 500M 1B 1.5B

2.2 Solvency

FA has an Altman-Z score of 3.37. This indicates that FA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FA (3.37) is comparable to the rest of the industry.
The Debt to FCF ratio of FA is 3.95, which is a good value as it means it would take FA, 3.95 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.95, FA is in line with its industry, outperforming 56.96% of the companies in the same industry.
FA has a Debt/Equity ratio of 0.61. This is a neutral value indicating FA is somewhat dependend on debt financing.
FA's Debt to Equity ratio of 0.61 is on the low side compared to the rest of the industry. FA is outperformed by 62.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF 3.95
Altman-Z 3.37
ROIC/WACC0.26
WACC9.28%
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 0 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 3.85 indicates that FA has no problem at all paying its short term obligations.
FA has a better Current ratio (3.85) than 94.94% of its industry peers.
FA has a Quick Ratio of 3.85. This indicates that FA is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of FA (3.85) is better than 94.94% of its industry peers.
Industry RankSector Rank
Current Ratio 3.85
Quick Ratio 3.85
FA Yearly Current Assets VS Current LiabilitesFA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M 400M 500M

More info and screens

5

3. Growth

3.1 Past

The earnings per share for FA have decreased by -7.92% in the last year.
FA shows a decrease in Revenue. In the last year, the revenue decreased by -2.35%.
The Revenue has been growing by 14.47% on average over the past years. This is quite good.
EPS 1Y (TTM)-7.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-7.14%
Revenue 1Y (TTM)-2.35%
Revenue growth 3Y14.47%
Revenue growth 5YN/A
Sales Q2Q%-0.64%

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 14.18% on average per year.
The Revenue is expected to grow by 22.69% on average over the next years. This is a very strong growth
EPS Next Y-10.48%
EPS Next 2Y1.7%
EPS Next 3Y8.12%
EPS Next 5Y14.18%
Revenue Next Year12.97%
Revenue Next 2Y43.13%
Revenue Next 3Y30.22%
Revenue Next 5Y22.69%

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 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5

More info and screens

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 20.00, which indicates a rather expensive current valuation of FA.
FA's Price/Earnings is on the same level as the industry average.
FA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.96.
FA is valuated rather expensively with a Price/Forward Earnings ratio of 17.98.
FA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FA is cheaper than 60.76% of the companies in the same industry.
FA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.11.
Industry RankSector Rank
PE 20
Fwd PE 17.98
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

FA's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, FA is valued a bit cheaper than the industry average as 63.29% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 22.66
EV/EBITDA 20.28
FA Per share dataFA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.7%
EPS Next 3Y8.12%

More info and screens

0

5. Dividend

5.1 Amount

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

More info and screens

FIRST ADVANTAGE CORP

NASDAQ:FA (1/17/2025, 8:00:01 PM)

After market: 18.6 0 (0%)

18.6

+0.37 (+2.03%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)11-12 2024-11-12/bmo
Earnings (Next)N/A N/A
Inst Owners41.08%
Inst Owner Change0%
Ins Owners2.77%
Ins Owner Change-2.15%
Market Cap3.21B
Analysts81.18
Price Target22.27 (19.73%)
Short Float %6.77%
Short Ratio4.83
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend1.48
Dividend Growth(5Y)N/A
DP5.1%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.24%
Min EPS beat(2)-2.71%
Max EPS beat(2)0.24%
EPS beat(4)1
Avg EPS beat(4)-3.01%
Min EPS beat(4)-6.74%
Max EPS beat(4)0.24%
EPS beat(8)3
Avg EPS beat(8)-1.51%
EPS beat(12)5
Avg EPS beat(12)2.01%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.13%
Min Revenue beat(2)-5.38%
Max Revenue beat(2)-2.89%
Revenue beat(4)0
Avg Revenue beat(4)-4.58%
Min Revenue beat(4)-6.83%
Max Revenue beat(4)-2.89%
Revenue beat(8)0
Avg Revenue beat(8)-3.58%
Revenue beat(12)2
Avg Revenue beat(12)-1.9%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.02%
PT rev (3m)14.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)41.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)13.08%
Valuation
Industry RankSector Rank
PE 20
Fwd PE 17.98
P/S 4.25
P/FCF 22.66
P/OCF 18.83
P/B 3.49
P/tB N/A
EV/EBITDA 20.28
EPS(TTM)0.93
EY5%
EPS(NY)1.03
Fwd EY5.56%
FCF(TTM)0.82
FCFY4.41%
OCF(TTM)0.99
OCFY5.31%
SpS4.38
BVpS5.33
TBVpS-1.18
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.3%
ROE 0.53%
ROCE 3.1%
ROIC 2.37%
ROICexc 2.97%
ROICexgc 34.89%
OM 6.31%
PM (TTM) 0.65%
GM 49.48%
FCFM 18.75%
ROA(3y)2.19%
ROA(5y)1.62%
ROE(3y)3.76%
ROE(5y)N/A
ROIC(3y)3.6%
ROIC(5y)N/A
ROICexc(3y)4.38%
ROICexc(5y)N/A
ROICexgc(3y)31.58%
ROICexgc(5y)N/A
ROCE(3y)4.72%
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 3Y0.37%
GM growth 5YN/A
F-Score6
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF 3.95
Debt/EBITDA 3.28
Cap/Depr 23.44%
Cap/Sales 3.82%
Interest Coverage 0.99
Cash Conversion 99.87%
Profit Quality 2888.56%
Current Ratio 3.85
Quick Ratio 3.85
Altman-Z 3.37
F-Score6
WACC9.28%
ROIC/WACC0.26
Cap/Depr(3y)19.56%
Cap/Depr(5y)27.16%
Cap/Sales(3y)3.5%
Cap/Sales(5y)3.49%
Profit Quality(3y)474.46%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-7.14%
EPS Next Y-10.48%
EPS Next 2Y1.7%
EPS Next 3Y8.12%
EPS Next 5Y14.18%
Revenue 1Y (TTM)-2.35%
Revenue growth 3Y14.47%
Revenue growth 5YN/A
Sales Q2Q%-0.64%
Revenue Next Year12.97%
Revenue Next 2Y43.13%
Revenue Next 3Y30.22%
Revenue Next 5Y22.69%
EBIT growth 1Y-41%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year160.71%
EBIT Next 3Y69.7%
EBIT Next 5Y54.7%
FCF growth 1Y-20.87%
FCF growth 3Y55.55%
FCF growth 5YN/A
OCF growth 1Y-17.83%
OCF growth 3Y44.83%
OCF growth 5YN/A