FIRSTCASH HOLDINGS INC (FCFS)
US33768G1076 - Common Stock
We assign a fundamental rating of 6 out of 10 to FCFS. FCFS was compared to 51 industry peers in the Consumer Finance industry. FCFS has an excellent financial health rating, but there are some minor concerns on its profitability. FCFS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FCFS was profitable.
FCFS had a positive operating cash flow in the past year.
Each year in the past 5 years FCFS has been profitable.
FCFS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FCFS has a Return On Assets of 5.11%. This is amongst the best in the industry. FCFS outperforms 88.24% of its industry peers.
FCFS has a Return On Equity of 10.99%. This is comparable to the rest of the industry: FCFS outperforms 58.82% of its industry peers.
FCFS's Return On Invested Capital of 7.58% is amongst the best of the industry. FCFS outperforms 88.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FCFS is in line with the industry average of 6.30%.
The last Return On Invested Capital (7.58%) for FCFS is above the 3 year average (6.92%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 10.99% | ||
| ROIC | 7.58% |
ROA(3y)4.95%
ROA(5y)5.22%
ROE(3y)10.46%
ROE(5y)10.37%
ROIC(3y)6.92%
ROIC(5y)7.31%
1.3 Margins
FCFS's Profit Margin of 6.96% is in line compared to the rest of the industry. FCFS outperforms 47.06% of its industry peers.
In the last couple of years the Profit Margin of FCFS has declined.
The Operating Margin of FCFS (12.41%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FCFS has declined.
With a Gross Margin value of 47.82%, FCFS perfoms like the industry average, outperforming 49.02% of the companies in the same industry.
FCFS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.41% | ||
| PM (TTM) | 6.96% | ||
| GM | 47.82% |
OM growth 3Y1.07%
OM growth 5Y-1.67%
PM growth 3Y2.11%
PM growth 5Y-4.15%
GM growth 3Y-5.04%
GM growth 5Y-2.5%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FCFS is destroying value.
FCFS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FCFS has more shares outstanding
FCFS has a worse debt/assets ratio than last year.
2.2 Solvency
FCFS has an Altman-Z score of 3.27. This indicates that FCFS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FCFS (3.27) is better than 88.24% of its industry peers.
The Debt to FCF ratio of FCFS is 4.51, which is a neutral value as it means it would take FCFS, 4.51 years of fcf income to pay off all of its debts.
FCFS has a better Debt to FCF ratio (4.51) than 62.75% of its industry peers.
FCFS has a Debt/Equity ratio of 0.80. This is a neutral value indicating FCFS is somewhat dependend on debt financing.
FCFS has a better Debt to Equity ratio (0.80) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 4.51 | ||
| Altman-Z | 3.27 |
ROIC/WACC0.91
WACC8.33%
2.3 Liquidity
FCFS has a Current Ratio of 3.89. This indicates that FCFS is financially healthy and has no problem in meeting its short term obligations.
FCFS has a Current ratio of 3.89. This is in the better half of the industry: FCFS outperforms 78.43% of its industry peers.
FCFS has a Quick Ratio of 2.96. This indicates that FCFS is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of FCFS (2.96) is better than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.89 | ||
| Quick Ratio | 2.96 |
3. Growth
3.1 Past
FCFS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.51%, which is quite good.
The Earnings Per Share has been growing by 11.45% on average over the past years. This is quite good.
Looking at the last year, FCFS shows a quite strong growth in Revenue. The Revenue has grown by 15.50% in the last year.
The Revenue has been growing by 12.09% on average over the past years. This is quite good.
EPS 1Y (TTM)16.51%
EPS 3Y26.34%
EPS 5Y11.45%
EPS growth Q2Q23.64%
Revenue 1Y (TTM)15.5%
Revenue growth 3Y24.55%
Revenue growth 5Y12.09%
Revenue growth Q2Q13.72%
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 16.64% on average per year.
FCFS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.10% yearly.
EPS Next Y16.62%
EPS Next 2Y16.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.79%
Revenue Next 2Y9.1%
Revenue Next 3YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.75, which indicates a rather expensive current valuation of FCFS.
Based on the Price/Earnings ratio, FCFS is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 25.25. FCFS is around the same levels.
With a Price/Forward Earnings ratio of 18.65, FCFS is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as FCFS.
FCFS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 18.65 |
4.2 Price Multiples
FCFS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FCFS is cheaper than 78.43% of the companies in the same industry.
FCFS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. FCFS is more expensive than 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.73 | ||
| EV/EBITDA | 14.9 |
4.3 Compensation for Growth
The 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.
FCFS's earnings are expected to grow with 16.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)1.9
EPS Next 2Y16.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FCFS has a Yearly Dividend Yield of 1.09%.
Compared to an average industry Dividend Yield of 4.32, 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 | 1.09% |
5.2 History
On average, the dividend of FCFS grows each year by 8.41%, which is quite nice.
FCFS has been paying a dividend for over 5 years, so it has already some track record.
As FCFS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)8.41%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
FCFS pays out 28.21% of its income as dividend. This is a sustainable payout ratio.
FCFS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.21%
EPS Next 2Y16.64%
EPS Next 3YN/A
FIRSTCASH HOLDINGS INC
NASDAQ:FCFS (4/24/2024, 5:04:26 PM)
After market: 132.03 0 (0%)132.03
-0.47 (-0.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 18.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.31
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.11% | ||
| ROE | 10.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.41% | ||
| PM (TTM) | 6.96% | ||
| GM | 47.82% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.89 | ||
| Quick Ratio | 2.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)16.51%
EPS 3Y26.34%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.5%
Revenue growth 3Y24.55%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y