Logo image of FA

FIRST ADVANTAGE CORP (FA) Stock Fundamental Analysis

NASDAQ:FA - Nasdaq - US31846B1089 - Common Stock - Currency: USD

14.98  +0.52 (+3.6%)

After market: 14.98 0 (0%)

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. Both the profitability and financial health of FA have multiple concerns. FA is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

2

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.
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 (-2.81%) is worse than 74.39% of its industry peers.
FA's Return On Equity of -8.44% is on the low side compared to the rest of the industry. FA is outperformed by 74.39% of its industry peers.
Industry RankSector Rank
ROA -2.81%
ROE -8.44%
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 (47.81%) is comparable to the rest of the industry.
FA's Gross Margin has been stable in the last couple of years.
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 47.81%
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

More info and screens

2

2. Health

2.1 Basic Checks

FA does not have a ROIC to compare to the WACC, probably because it is not profitable.
FA has more shares outstanding than it did 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.
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 0.75. This is a bad value and indicates that FA is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.75, FA is not doing good in the industry: 69.51% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.62 is on the high side and indicates that FA has dependencies on debt financing.
The Debt to Equity ratio of FA (1.62) is worse than 81.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF N/A
Altman-Z 0.75
ROIC/WACCN/A
WACC7.98%
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 1.90. This is a normal value and indicates that FA is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.90, FA is doing good in the industry, outperforming 73.17% of the companies in the same industry.
A Quick Ratio of 1.90 indicates that FA should not have too much problems paying its short term obligations.
FA has a Quick ratio of 1.90. This is in the better half of the industry: FA outperforms 73.17% of its industry peers.
Industry RankSector Rank
Current Ratio 1.9
Quick Ratio 1.9
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

More info and screens

6

3. Growth

3.1 Past

FA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.00%.
FA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.63%.
The Revenue has been growing by 12.29% on average over the past years. This is quite good.
EPS 1Y (TTM)-18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-37.93%
Revenue 1Y (TTM)12.63%
Revenue growth 3Y6.49%
Revenue growth 5Y12.29%
Sales Q2Q%51.62%

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 18.51% on average per year.
FA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.07% yearly.
EPS Next Y12.39%
EPS Next 2Y18.5%
EPS Next 3Y18.51%
EPS Next 5YN/A
Revenue Next Year76.44%
Revenue Next 2Y37.22%
Revenue Next 3Y26.07%
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

More info and screens

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.27, which indicates a rather expensive current valuation of FA.
Compared to the rest of the industry, the Price/Earnings ratio of FA is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.22, FA is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.25, the valuation of FA can be described as correct.
Based on the Price/Forward Earnings ratio, FA is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, FA is valued a bit cheaper.
Industry RankSector Rank
PE 18.27
Fwd PE 16.25
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

Based on the Enterprise Value to EBITDA ratio, FA is valued a bit more expensive than the industry average as 71.95% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 53.67
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FA's earnings are expected to grow with 18.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)N/A
EPS Next 2Y18.5%
EPS Next 3Y18.51%

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 (5/2/2025, 8:00:02 PM)

After market: 14.98 0 (0%)

14.98

+0.52 (+3.6%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-27 2025-02-27/bmo
Earnings (Next)05-08 2025-05-08/bmo
Inst Owners50.86%
Inst Owner Change0.01%
Ins Owners2.33%
Ins Owner Change0.08%
Market Cap2.60B
Analysts80
Price Target17.85 (19.16%)
Short Float %11.25%
Short Ratio6.37
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP-0.23%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.1%
Min EPS beat(2)-22.44%
Max EPS beat(2)0.24%
EPS beat(4)1
Avg EPS beat(4)-6.94%
Min EPS beat(4)-22.44%
Max EPS beat(4)0.24%
EPS beat(8)2
Avg EPS beat(8)-4.4%
EPS beat(12)4
Avg EPS beat(12)-3.29%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.78%
Min Revenue beat(2)-5.38%
Max Revenue beat(2)-2.18%
Revenue beat(4)0
Avg Revenue beat(4)-3.42%
Min Revenue beat(4)-5.38%
Max Revenue beat(4)-2.18%
Revenue beat(8)0
Avg Revenue beat(8)-3.22%
Revenue beat(12)1
Avg Revenue beat(12)-3.05%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-16.67%
PT rev (3m)-19.85%
EPS NQ rev (1m)-1.08%
EPS NQ rev (3m)-32.63%
EPS NY rev (1m)-1.79%
EPS NY rev (3m)-10.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.28%
Revenue NY rev (1m)4.97%
Revenue NY rev (3m)-4.05%
Valuation
Industry RankSector Rank
PE 18.27
Fwd PE 16.25
P/S 3.02
P/FCF N/A
P/OCF 92.18
P/B 1.99
P/tB N/A
EV/EBITDA 53.67
EPS(TTM)0.82
EY5.47%
EPS(NY)0.92
Fwd EY6.15%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)0.16
OCFY1.08%
SpS4.96
BVpS7.53
TBVpS-10.41
PEG (NY)1.47
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.81%
ROE -8.44%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 47.81%
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 Turnover0.22
Health
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF N/A
Debt/EBITDA 25.39
Cap/Depr 22.11%
Cap/Sales 3.75%
Interest Coverage N/A
Cash Conversion 33.75%
Profit Quality N/A
Current Ratio 1.9
Quick Ratio 1.9
Altman-Z 0.75
F-Score2
WACC7.98%
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)-18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-37.93%
EPS Next Y12.39%
EPS Next 2Y18.5%
EPS Next 3Y18.51%
EPS Next 5YN/A
Revenue 1Y (TTM)12.63%
Revenue growth 3Y6.49%
Revenue growth 5Y12.29%
Sales Q2Q%51.62%
Revenue Next Year76.44%
Revenue Next 2Y37.22%
Revenue Next 3Y26.07%
Revenue Next 5YN/A
EBIT growth 1Y-176.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year375.17%
EBIT Next 3Y82.89%
EBIT Next 5YN/A
FCF growth 1Y-103.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-82.68%
OCF growth 3Y-42.55%
OCF growth 5Y-17%