Focus Financial Partners Inc (FOCS)
US34417P1003 - Common Stock
FOCS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 210 industry peers in the Capital Markets industry. FOCS may be in some trouble as it scores bad on both profitability and health. FOCS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FOCS was profitable.
In the past year FOCS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: FOCS reported negative net income in multiple years.
FOCS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FOCS has a Return On Assets (1.17%) which is in line with its industry peers.
FOCS has a Return On Equity (5.65%) which is in line with its industry peers.
FOCS's Return On Invested Capital of 2.53% is on the low side compared to the rest of the industry. FOCS is outperformed by 71.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FOCS is significantly below the industry average of 10.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.17% | ||
| ROE | 5.65% | ||
| ROIC | 2.53% |
ROA(3y)1.01%
ROA(5y)N/A
ROE(3y)5.03%
ROE(5y)N/A
ROIC(3y)2.83%
ROIC(5y)2.4%
1.3 Margins
Looking at the Profit Margin, with a value of 2.77%, FOCS is doing worse than 72.77% of the companies in the same industry.
FOCS has a worse Operating Margin (8.72%) than 80.20% of its industry peers.
FOCS's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.72% | ||
| PM (TTM) | 2.77% | ||
| GM | N/A |
OM growth 3Y35.26%
OM growth 5Y74.04%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
FOCS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FOCS has more shares outstanding
The debt/assets ratio for FOCS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that FOCS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.12, FOCS perfoms like the industry average, outperforming 58.42% of the companies in the same industry.
FOCS has a debt to FCF ratio of 10.74. This is a negative value and a sign of low solvency as FOCS would need 10.74 years to pay back of all of its debts.
The Debt to FCF ratio of FOCS (10.74) is comparable to the rest of the industry.
FOCS has a Debt/Equity ratio of 2.40. This is a high value indicating a heavy dependency on external financing.
FOCS's Debt to Equity ratio of 2.40 is on the low side compared to the rest of the industry. FOCS is outperformed by 78.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 10.74 | ||
| Altman-Z | 1.12 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
FOCS has a Current Ratio of 1.28. This is a normal value and indicates that FOCS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.28, FOCS is in line with its industry, outperforming 48.51% of the companies in the same industry.
FOCS has a Quick Ratio of 1.28. This is a normal value and indicates that FOCS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.28, FOCS is in line with its industry, outperforming 48.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
FOCS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.12%.
Measured over the past years, FOCS shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.47% on average per year.
FOCS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.53%.
Measured over the past years, FOCS shows a very strong growth in Revenue. The Revenue has been growing by 26.45% on average per year.
EPS 1Y (TTM)-13.12%
EPS 3Y22.47%
EPS 5YN/A
EPS growth Q2Q-23.73%
Revenue 1Y (TTM)7.53%
Revenue growth 3Y20.72%
Revenue growth 5Y26.45%
Revenue growth Q2Q8.27%
3.2 Future
The Earnings Per Share is expected to grow by 10.06% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.98% on average over the next years. This is quite good.
EPS Next Y-11.71%
EPS Next 2Y0.84%
EPS Next 3Y6.85%
EPS Next 5Y10.06%
Revenue Next Year11.6%
Revenue Next 2Y12.76%
Revenue Next 3Y13.37%
Revenue Next 5Y12.98%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
FOCS is valuated correctly with a Price/Earnings ratio of 13.80.
FOCS's Price/Earnings is on the same level as the industry average.
FOCS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.55.
With a Price/Forward Earnings ratio of 11.87, the valuation of FOCS can be described as very reasonable.
FOCS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, FOCS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FOCS is valued a bit cheaper than 70.30% of the companies in the same industry.
60.89% of the companies in the same industry are more expensive than FOCS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.45 | ||
| EV/EBITDA | 12.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.84%
EPS Next 3Y6.85%
5. Dividend
5.1 Amount
FOCS has a yearly dividend return of 0.56%, which is pretty low.
Compared to an average industry Dividend Yield of 7.21, FOCS is paying slightly less dividend.
With a Dividend Yield of 0.56, FOCS pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
On average, the dividend of FOCS grows each year by 43.15%, which is quite nice.
FOCS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)43.15%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
16.68% of the earnings are spent on dividend by FOCS. This is a low number and sustainable payout ratio.
FOCS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.68%
EPS Next 2Y0.84%
EPS Next 3Y6.85%
Focus Financial Partners Inc
NASDAQ:FOCS (8/30/2023, 7:00:01 PM)
After market: 52.97 -0.02 (-0.04%)52.99
-0.01 (-0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 11.87 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.17% | ||
| ROE | 5.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.72% | ||
| PM (TTM) | 2.77% | ||
| GM | N/A | ||
| 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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| 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)-13.12%
EPS 3Y22.47%
EPS 5Y
EPS growth Q2Q
EPS Next Y-11.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.53%
Revenue growth 3Y20.72%
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