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FIRST ADVANTAGE CORP (FA) Stock Fundamental Analysis

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

17.29  -0.11 (-0.63%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to FA. FA was compared to 81 industry peers in the Professional Services industry. Both the profitability and financial health of FA have multiple concerns. While showing a medium growth rate, FA is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

FA had positive earnings in the past year.
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.
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

Looking at the Return On Assets, with a value of -2.81%, FA is doing worse than 72.84% of the companies in the same industry.
FA has a worse Return On Equity (-8.44%) than 72.84% 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 better than 60.49% of its industry peers.
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 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

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2

2. Health

2.1 Basic Checks

FA does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, FA has more shares outstanding
FA has more shares outstanding than it did 5 years ago.
FA has a worse debt/assets ratio than last year.
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

Based on the Altman-Z score of 0.87, we must say that FA is in the distress zone and has some risk of bankruptcy.
FA's Altman-Z score of 0.87 is on the low side compared to the rest of the industry. FA is outperformed by 74.07% 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.
The Debt to Equity ratio of FA (1.62) is worse than 82.72% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF N/A
Altman-Z 0.87
ROIC/WACCN/A
WACC8.04%
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.
The Current ratio of FA (1.90) is better than 74.07% of its industry peers.
A Quick Ratio of 1.90 indicates that FA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.90, FA is doing good in the industry, outperforming 74.07% of the companies in the same industry.
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

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6

3. Growth

3.1 Past

FA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.33%.
Looking at the last year, FA shows a quite strong growth in Revenue. The Revenue has grown by 12.63% in the last year.
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)-16.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)12.63%
Revenue growth 3Y6.49%
Revenue growth 5Y12.29%
Sales Q2Q%109.3%

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 18.43% on average per year.
Based on estimates for the next years, FA will show a very strong growth in Revenue. The Revenue will grow by 26.47% on average per year.
EPS Next Y16.26%
EPS Next 2Y18.82%
EPS Next 3Y18.43%
EPS Next 5YN/A
Revenue Next Year77.34%
Revenue Next 2Y37.38%
Revenue Next 3Y26.47%
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.
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

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 21.09, the valuation of FA can be described as rather expensive.
FA's Price/Earnings ratio is in line with the industry average.
FA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.94, which indicates a correct valuation of FA.
Based on the Price/Forward Earnings ratio, FA is valued a bit cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.20. FA is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 21.09
Fwd PE 14.94
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 72.84% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 59.81
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.
A more expensive valuation may be justified as FA's earnings are expected to grow with 18.43% in the coming years.
PEG (NY)1.3
PEG (5Y)N/A
EPS Next 2Y18.82%
EPS Next 3Y18.43%

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0

5. Dividend

5.1 Amount

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

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FIRST ADVANTAGE CORP

NASDAQ:FA (5/28/2025, 2:45:41 PM)

17.29

-0.11 (-0.63%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)08-06 2025-08-06/bmo
Inst Owners50.86%
Inst Owner Change4.4%
Ins Owners2.33%
Ins Owner Change0.44%
Market Cap3.00B
Analysts78.89
Price Target17 (-1.68%)
Short Float %11.33%
Short Ratio6.35
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)-13.79%
PT rev (3m)-23.66%
EPS NQ rev (1m)-1.29%
EPS NQ rev (3m)-27.79%
EPS NY rev (1m)3.44%
EPS NY rev (3m)-7.2%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-3.48%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)-2.96%
Valuation
Industry RankSector Rank
PE 21.09
Fwd PE 14.94
P/S 3.49
P/FCF N/A
P/OCF 106.5
P/B 2.3
P/tB N/A
EV/EBITDA 59.81
EPS(TTM)0.82
EY4.74%
EPS(NY)1.16
Fwd EY6.7%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)0.16
OCFY0.94%
SpS4.95
BVpS7.53
TBVpS-10.4
PEG (NY)1.3
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 0.87
F-Score2
WACC8.04%
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)-16.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y16.26%
EPS Next 2Y18.82%
EPS Next 3Y18.43%
EPS Next 5YN/A
Revenue 1Y (TTM)12.63%
Revenue growth 3Y6.49%
Revenue growth 5Y12.29%
Sales Q2Q%109.3%
Revenue Next Year77.34%
Revenue Next 2Y37.38%
Revenue Next 3Y26.47%
Revenue Next 5YN/A
EBIT growth 1Y-176.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year381.49%
EBIT Next 3Y81.12%
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%