FIRST ADVANTAGE CORP (FA) Stock Fundamental Analysis
USA - NASDAQ:FA - US31846B1089 - Common Stock
14.45 USD
+0.29 (+2.05%)
14.45 USD
0 (0%)
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 may be in some trouble as it scores bad on both profitability and health. FA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FA was profitable.
FA had a positive operating cash flow in the past year.
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.
1.2 Ratios
FA has a Return On Assets of -3.88%. This is in the lower half of the industry: FA underperforms 70.73% of its industry peers.
FA's Return On Equity of -11.55% is on the low side compared to the rest of the industry. FA is outperformed by 71.95% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
FA has a Gross Margin (46.48%) which is comparable to the rest of the industry.
FA's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for FA so they could not be analyzed.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for FA has been increased compared to 5 years ago.
Compared to 1 year ago, FA has a worse debt to assets ratio.
2.2 Solvency
FA has an Altman-Z score of 0.89. This is a bad value and indicates that FA is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FA (0.89) is worse than 76.83% 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.
Looking at the Debt to Equity ratio, with a value of 1.62, FA is doing worse than 81.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACCN/A
WACC7.12%
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.
Looking at the Current ratio, with a value of 1.98, FA is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
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's Quick ratio of 1.98 is fine compared to the rest of the industry. FA outperforms 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The earnings per share for FA have decreased by -7.37% in the last year.
Looking at the last year, FA shows a very strong growth in Revenue. The Revenue has grown by 65.34%.
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
FA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.75% yearly.
The Revenue is expected to grow by 26.91% on average over the next years. This is a very strong growth
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
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 16.42 indicates a correct valuation of FA.
Compared to the rest of the industry, the Price/Earnings ratio of FA indicates a somewhat cheap valuation: FA is cheaper than 67.07% of the companies listed in the same industry.
FA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.50.
A Price/Forward Earnings ratio of 11.87 indicates a reasonable valuation of FA.
79.27% of the companies in the same industry are more expensive than FA, based on the Price/Forward Earnings ratio.
FA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FA is valued a bit more expensive than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.29 |
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.
FA's earnings are expected to grow with 15.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y21.82%
EPS Next 3Y15.75%
5. Dividend
5.1 Amount
No dividends for FA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.45
+0.29 (+2.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners56.93%
Inst Owner Change0%
Ins Owners2.67%
Ins Owner Change0.71%
Market Cap2.51B
Analysts77.78
Price Target19.21 (32.94%)
Short Float %14.46%
Short Ratio13.77
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 11.87 | ||
| P/S | 2.01 | ||
| P/FCF | N/A | ||
| P/OCF | 171.73 | ||
| P/B | 1.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.29 |
EPS(TTM)0.88
EY6.09%
EPS(NY)1.22
Fwd EY8.42%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)0.08
OCFY0.58%
SpS7.19
BVpS7.47
TBVpS-10.17
PEG (NY)0.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.89 |
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%