FIRSTCASH HOLDINGS INC (FCFS) Stock Fundamental Analysis
NASDAQ:FCFS - Nasdaq - US33768G1076 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to FCFS. FCFS was compared to 52 industry peers in the Consumer Finance industry. While FCFS has a great health rating, its profitability is only average at the moment. FCFS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FCFS was profitable.
In the past year FCFS had a positive cash flow from operations.
FCFS had positive earnings in each of the past 5 years.
FCFS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.78%, FCFS belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.60%, FCFS is in line with its industry, outperforming 55.77% of the companies in the same industry.
The Return On Invested Capital of FCFS (8.20%) is better than 78.85% of its industry peers.
FCFS had an Average Return On Invested Capital over the past 3 years of 7.96%. This is in line with the industry average of 9.28%.
The last Return On Invested Capital (8.20%) for FCFS is above the 3 year average (7.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 12.6% | ||
| ROIC | 8.2% |
ROA(3y)5.79%
ROA(5y)5.03%
ROE(3y)12.36%
ROE(5y)10.46%
ROIC(3y)7.96%
ROIC(5y)7.08%
1.3 Margins
With a Profit Margin value of 7.64%, FCFS perfoms like the industry average, outperforming 42.31% of the companies in the same industry.
In the last couple of years the Profit Margin of FCFS has declined.
The Operating Margin of FCFS (13.31%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FCFS has remained more or less at the same level.
Looking at the Gross Margin, with a value of 48.09%, FCFS is in line with its industry, outperforming 48.08% of the companies in the same industry.
In the last couple of years the Gross Margin of FCFS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.31% | ||
| PM (TTM) | 7.64% | ||
| GM | 48.09% |
OM growth 3Y1.69%
OM growth 5Y-0.82%
PM growth 3Y1.28%
PM growth 5Y-2.86%
GM growth 3Y-3.85%
GM growth 5Y-2.51%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FCFS is creating some value.
FCFS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FCFS has been increased compared to 5 years ago.
The debt/assets ratio for FCFS is higher compared to a year ago.
2.2 Solvency
FCFS has an Altman-Z score of 3.29. This indicates that FCFS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.29, FCFS belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
FCFS has a debt to FCF ratio of 3.67. This is a good value and a sign of high solvency as FCFS would need 3.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.67, FCFS is in the better half of the industry, outperforming 71.15% of the companies in the same industry.
A Debt/Equity ratio of 0.84 indicates that FCFS is somewhat dependend on debt financing.
The Debt to Equity ratio of FCFS (0.84) is better than 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.67 | ||
| Altman-Z | 3.29 |
ROIC/WACC1.04
WACC7.91%
2.3 Liquidity
FCFS has a Current Ratio of 4.14. This indicates that FCFS is financially healthy and has no problem in meeting its short term obligations.
FCFS has a Current ratio of 4.14. This is amongst the best in the industry. FCFS outperforms 84.62% of its industry peers.
FCFS has a Quick Ratio of 3.15. This indicates that FCFS is financially healthy and has no problem in meeting its short term obligations.
FCFS has a Quick ratio of 3.15. This is amongst the best in the industry. FCFS outperforms 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.14 | ||
| Quick Ratio | 3.15 |
3. Growth
3.1 Past
FCFS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.50%, which is quite good.
FCFS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.52% yearly.
FCFS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.06%.
The Revenue has been growing by 12.69% on average over the past years. This is quite good.
EPS 1Y (TTM)13.5%
EPS 3Y19.62%
EPS 5Y11.52%
EPS Q2Q%33.55%
Revenue 1Y (TTM)5.06%
Revenue growth 3Y25.87%
Revenue growth 5Y12.69%
Sales Q2Q%0.01%
3.2 Future
Based on estimates for the next years, FCFS will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.01% on average per year.
Based on estimates for the next years, FCFS will show a small growth in Revenue. The Revenue will grow by 4.38% on average per year.
EPS Next Y16.48%
EPS Next 2Y16.96%
EPS Next 3Y16.01%
EPS Next 5YN/A
Revenue Next Year0.09%
Revenue Next 2Y2.76%
Revenue Next 3Y4.38%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.52 indicates a rather expensive valuation of FCFS.
Based on the Price/Earnings ratio, FCFS is valued a bit more expensive than 67.31% of the companies in the same industry.
FCFS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.59, FCFS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FCFS is on the same level as its industry peers.
FCFS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 14.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FCFS is valued a bit cheaper than 67.31% of the companies in the same industry.
FCFS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.59 | ||
| EV/EBITDA | 13.48 |
4.3 Compensation for Growth
FCFS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of FCFS may justify a higher PE ratio.
A more expensive valuation may be justified as FCFS's earnings are expected to grow with 16.01% in the coming years.
PEG (NY)1.12
PEG (5Y)1.61
EPS Next 2Y16.96%
EPS Next 3Y16.01%
5. Dividend
5.1 Amount
FCFS has a Yearly Dividend Yield of 1.15%.
Compared to an average industry Dividend Yield of 4.49, FCFS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, FCFS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
On average, the dividend of FCFS grows each year by 7.40%, which is quite nice.
FCFS has paid a dividend for at least 10 years, which is a reliable track record.
FCFS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.4%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
FCFS pays out 25.41% of its income as dividend. This is a sustainable payout ratio.
The dividend of FCFS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP25.41%
EPS Next 2Y16.96%
EPS Next 3Y16.01%
133.91
+1.26 (+0.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners85.61%
Inst Owner Change0.1%
Ins Owners3.04%
Ins Owner Change8.21%
Market Cap5.94B
Analysts81.67
Price Target140.56 (4.97%)
Short Float %1.41%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend1.46
Dividend Growth(5Y)7.4%
DP25.41%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.09%
Min EPS beat(2)0.98%
Max EPS beat(2)3.21%
EPS beat(4)3
Avg EPS beat(4)1.45%
Min EPS beat(4)-0.29%
Max EPS beat(4)3.21%
EPS beat(8)7
Avg EPS beat(8)4.93%
EPS beat(12)11
Avg EPS beat(12)6.43%
EPS beat(16)15
Avg EPS beat(16)8.79%
Revenue beat(2)0
Avg Revenue beat(2)-3.1%
Min Revenue beat(2)-3.47%
Max Revenue beat(2)-2.73%
Revenue beat(4)0
Avg Revenue beat(4)-2.63%
Min Revenue beat(4)-3.47%
Max Revenue beat(4)-1.23%
Revenue beat(8)3
Avg Revenue beat(8)-1.11%
Revenue beat(12)4
Avg Revenue beat(12)-0.94%
Revenue beat(16)7
Avg Revenue beat(16)0.4%
PT rev (1m)0.29%
PT rev (3m)2.68%
EPS NQ rev (1m)-1.13%
EPS NQ rev (3m)-2.96%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-3%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-3.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.52 | ||
| Fwd PE | 14.59 | ||
| P/S | 1.75 | ||
| P/FCF | 12.59 | ||
| P/OCF | 11 | ||
| P/B | 2.89 | ||
| P/tB | 155.77 | ||
| EV/EBITDA | 13.48 |
EPS(TTM)7.23
EY5.4%
EPS(NY)9.18
Fwd EY6.85%
FCF(TTM)10.63
FCFY7.94%
OCF(TTM)12.17
OCFY9.09%
SpS76.39
BVpS46.31
TBVpS0.86
PEG (NY)1.12
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 12.6% | ||
| ROCE | 10.9% | ||
| ROIC | 8.2% | ||
| ROICexc | 8.56% | ||
| ROICexgc | 17.42% | ||
| OM | 13.31% | ||
| PM (TTM) | 7.64% | ||
| GM | 48.09% | ||
| FCFM | 13.92% |
ROA(3y)5.79%
ROA(5y)5.03%
ROE(3y)12.36%
ROE(5y)10.46%
ROIC(3y)7.96%
ROIC(5y)7.08%
ROICexc(3y)8.26%
ROICexc(5y)7.33%
ROICexgc(3y)17.47%
ROICexgc(5y)15.63%
ROCE(3y)10.59%
ROCE(5y)9.41%
ROICexcg growth 3Y14.69%
ROICexcg growth 5Y0.69%
ROICexc growth 3Y20.73%
ROICexc growth 5Y-0.74%
OM growth 3Y1.69%
OM growth 5Y-0.82%
PM growth 3Y1.28%
PM growth 5Y-2.86%
GM growth 3Y-3.85%
GM growth 5Y-2.51%
F-Score8
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.67 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 65.03% | ||
| Cap/Sales | 2.01% | ||
| Interest Coverage | 4.95 | ||
| Cash Conversion | 97.14% | ||
| Profit Quality | 182.26% | ||
| Current Ratio | 4.14 | ||
| Quick Ratio | 3.15 | ||
| Altman-Z | 3.29 |
F-Score8
WACC7.91%
ROIC/WACC1.04
Cap/Depr(3y)51.48%
Cap/Depr(5y)67%
Cap/Sales(3y)1.74%
Cap/Sales(5y)2%
Profit Quality(3y)171.89%
Profit Quality(5y)166.84%
High Growth Momentum
Growth
EPS 1Y (TTM)13.5%
EPS 3Y19.62%
EPS 5Y11.52%
EPS Q2Q%33.55%
EPS Next Y16.48%
EPS Next 2Y16.96%
EPS Next 3Y16.01%
EPS Next 5YN/A
Revenue 1Y (TTM)5.06%
Revenue growth 3Y25.87%
Revenue growth 5Y12.69%
Sales Q2Q%0.01%
Revenue Next Year0.09%
Revenue Next 2Y2.76%
Revenue Next 3Y4.38%
Revenue Next 5YN/A
EBIT growth 1Y15.31%
EBIT growth 3Y28%
EBIT growth 5Y11.76%
EBIT Next Year52.83%
EBIT Next 3Y23.81%
EBIT Next 5YN/A
FCF growth 1Y32.51%
FCF growth 3Y37.54%
FCF growth 5Y20.29%
OCF growth 1Y29.75%
OCF growth 3Y34.22%
OCF growth 5Y18.45%