FIRST ADVANTAGE CORP (FA) Stock Fundamental Analysis
USA - NASDAQ:FA - US31846B1089 - Common Stock
12.17 USD
-0.33 (-2.64%)
12.17 USD
0 (0%)
Taking everything into account, FA scores 3 out of 10 in our fundamental rating. FA was compared to 87 industry peers in the Professional Services industry. Both the profitability and financial health of FA have multiple concerns. FA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FA was profitable.
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.
In the past 5 years FA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FA (-3.60%) is worse than 65.52% of its industry peers.
FA's Return On Equity of -10.65% is on the low side compared to the rest of the industry. FA is outperformed by 71.26% of its industry peers.
FA's Return On Invested Capital of 0.15% is on the low side compared to the rest of the industry. FA is outperformed by 65.52% 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
The Operating Margin of FA (0.47%) is worse than 63.22% of its industry peers.
FA has a Gross Margin (45.88%) which is in line with its industry peers.
FA's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FA is destroying value.
Compared to 1 year ago, FA has more shares outstanding
Compared to 5 years ago, FA has more shares outstanding
The debt/assets ratio for FA is higher compared to a year ago.
2.2 Solvency
FA has an Altman-Z score of 0.90. This is a bad value and indicates that FA is not financially healthy and even has some risk of bankruptcy.
FA's Altman-Z score of 0.90 is on the low side compared to the rest of the industry. FA is outperformed by 71.26% 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 80.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACC0.02
WACC6.81%
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 in the better half of the industry: FA outperforms 79.31% 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.
The Quick ratio of FA (2.26) is better than 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
The earnings per share for FA have decreased by -1.08% in the last year.
Looking at the last year, FA shows a very strong growth in Revenue. 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
FA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.92% yearly.
FA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.91% yearly.
EPS Next Y22.75%
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
The Price/Earnings ratio is 13.23, which indicates a correct valuation of FA.
FA's Price/Earnings ratio is a bit cheaper when compared to the industry. FA is cheaper than 73.56% of the companies in the same industry.
When comparing the Price/Earnings ratio of FA to the average of the S&P500 Index (25.51), we can say FA is valued slightly cheaper.
A Price/Forward Earnings ratio of 10.01 indicates a reasonable valuation of FA.
Based on the Price/Forward Earnings ratio, FA is valued cheaper than 80.46% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.98. FA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.23 | ||
| Fwd PE | 10.01 |
4.2 Price Multiples
FA's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.1 |
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 15.92% in the coming years.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y21.76%
EPS Next 3Y15.92%
5. Dividend
5.1 Amount
No dividends for FA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.17
-0.33 (-2.64%)
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 Cap2.12B
Revenue(TTM)1.46B
Net Income(TTM)-138.66M
Analysts77.78
Price Target18.7 (53.66%)
Short Float %15.49%
Short Ratio14.31
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 | 13.23 | ||
| Fwd PE | 10.01 | ||
| P/S | 1.45 | ||
| P/FCF | N/A | ||
| P/OCF | 48.66 | ||
| P/B | 1.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.1 |
EPS(TTM)0.92
EY7.56%
EPS(NY)1.22
Fwd EY9.99%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.25
OCFY2.06%
SpS8.4
BVpS7.48
TBVpS-9.94
PEG (NY)0.58
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 | 0.9 |
F-Score2
WACC6.81%
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 13.23 and the Price/Book (PB) ratio is 1.63.
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.