Focus Financial Partners Inc (FOCS) Fundamental Analysis & Valuation

NASDAQ:FOCS • US34417P1003

Current stock price

52.99 USD
-0.01 (-0.02%)
At close:
52.97 USD
-0.02 (-0.04%)
After Hours:

This FOCS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. FOCS Profitability Analysis

1.1 Basic Checks

  • FOCS had positive earnings in the past year.
  • In the past year FOCS had a positive cash flow from operations.
FOCS Yearly Net Income VS EBIT VS OCF VS FCFFOCS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 100M 200M 300M

1.2 Ratios

  • With a Return On Assets value of 1.17%, FOCS perfoms like the industry average, outperforming 40.59% of the companies in the same industry.
  • The Return On Equity of FOCS (5.65%) is comparable to the rest of the industry.
  • The Return On Invested Capital of FOCS (2.53%) is worse than 71.78% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for FOCS is below the industry average of 7.28%.
Industry RankSector 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%
FOCS Yearly ROA, ROE, ROICFOCS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 -20 -40

1.3 Margins

  • FOCS's Profit Margin of 2.77% is on the low side compared to the rest of the industry. FOCS is outperformed by 72.77% of its industry peers.
  • Looking at the Operating Margin, with a value of 8.72%, FOCS is doing worse than 80.20% of the companies in the same industry.
  • In the last couple of years the Operating Margin of FOCS has grown nicely.
Industry RankSector 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
FOCS Yearly Profit, Operating, Gross MarginsFOCS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10

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2

2. FOCS Health Analysis

2.1 Basic Checks

  • The number of shares outstanding for FOCS has been increased compared to 1 year ago.
  • The debt/assets ratio for FOCS is higher compared to a year ago.
FOCS Yearly Shares OutstandingFOCS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M
FOCS Yearly Total Debt VS Total AssetsFOCS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B

2.2 Solvency

  • FOCS has an Altman-Z score of 1.12. This is a bad value and indicates that FOCS is not financially healthy and even has some risk of bankruptcy.
  • FOCS has a Altman-Z score of 1.12. This is comparable to the rest of the industry: FOCS outperforms 58.42% of its industry peers.
  • The Debt to FCF ratio of FOCS is 10.74, which is on the high side as it means it would take FOCS, 10.74 years of fcf income to pay off all of its debts.
  • With a Debt to FCF ratio value of 10.74, FOCS perfoms like the industry average, outperforming 58.42% of the companies in the same industry.
  • FOCS has a Debt/Equity ratio of 2.40. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 2.40, FOCS is not doing good in the industry: 78.22% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.4
Debt/FCF 10.74
Altman-Z 1.12
ROIC/WACCN/A
WACCN/A
FOCS Yearly LT Debt VS Equity VS FCFFOCS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

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.
  • FOCS has a Current ratio of 1.28. This is comparable to the rest of the industry: FOCS outperforms 48.51% of its industry peers.
  • 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.
  • The Quick ratio of FOCS (1.28) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.28
Quick Ratio 1.28
FOCS Yearly Current Assets VS Current LiabilitesFOCS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. FOCS Growth Analysis

3.1 Past

  • The earnings per share for FOCS have decreased strongly by -13.12% in the last year.
  • FOCS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.47% yearly.
  • Looking at the last year, FOCS shows a small growth in Revenue. The Revenue has grown by 7.53% in the last year.
  • 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 Q2Q%-23.73%
Revenue 1Y (TTM)7.53%
Revenue growth 3Y20.72%
Revenue growth 5Y26.45%
Sales Q2Q%8.27%

3.2 Future

  • Based on estimates for the next years, FOCS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.06% on average per year.
  • FOCS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.98% yearly.
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.
FOCS Yearly Revenue VS EstimatesFOCS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
FOCS Yearly EPS VS EstimatesFOCS Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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5

4. FOCS Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 13.80, which indicates a correct valuation of FOCS.
  • The rest of the industry has a similar Price/Earnings ratio as FOCS.
  • When comparing the Price/Earnings ratio of FOCS to the average of the S&P500 Index (27.71), we can say FOCS is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 11.87, the valuation of FOCS can be described as reasonable.
  • FOCS's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 38.09. FOCS is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 13.8
Fwd PE 11.87
FOCS Price Earnings VS Forward Price EarningsFOCS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, FOCS is valued a bit cheaper than the industry average as 70.30% of the companies are valued more expensively.
  • FOCS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FOCS is cheaper than 60.89% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.45
EV/EBITDA 12.12
FOCS Per share dataFOCS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 -40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.84%
EPS Next 3Y6.85%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

2

5. FOCS Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.56%, FOCS is not a good candidate for dividend investing.
  • FOCS's Dividend Yield is slightly below the industry average, which is at 6.47.
  • With a Dividend Yield of 0.56, FOCS pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.56%

5.2 History

  • The dividend of FOCS is nicely growing with an annual growth rate of 43.15%!
  • FOCS is new to the dividend game and has less than 3 years of track record.
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%
FOCS Yearly Income VS Free CF VS DividendFOCS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 100M 200M 300M
FOCS Dividend Payout.FOCS Dividend Payout, showing the Payout Ratio.FOCS Dividend Payout.PayoutRetained Earnings

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FOCS Fundamentals: All Metrics, Ratios and Statistics

Focus Financial Partners Inc

NASDAQ:FOCS (8/30/2023, 8:00:01 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)08-03
Earnings (Next)11-01
Inst Owners0.11%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change0%
Market Cap3.50B
Revenue(TTM)2.21B
Net Income(TTM)61.14M
Analysts45.71
Price Target53.24 (0.47%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.56%
Yearly Dividend0.3
Dividend Growth(5Y)43.15%
DP16.68%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.93%
Min EPS beat(2)-9.77%
Max EPS beat(2)-8.09%
EPS beat(4)2
Avg EPS beat(4)-2.02%
Min EPS beat(4)-9.77%
Max EPS beat(4)6.89%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.33%
Min Revenue beat(2)-3.69%
Max Revenue beat(2)-0.96%
Revenue beat(4)2
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-3.69%
Max Revenue beat(4)3.9%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-5.11%
EPS NQ rev (3m)-8.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.88%
Revenue NQ rev (1m)1.64%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.04%
Valuation
Industry RankSector Rank
PE 13.8
Fwd PE 11.87
P/S 1.58
P/FCF 14.45
P/OCF 13.15
P/B 3.24
P/tB N/A
EV/EBITDA 12.12
EPS(TTM)3.84
EY7.25%
EPS(NY)4.46
Fwd EY8.42%
FCF(TTM)3.67
FCFY6.92%
OCF(TTM)4.03
OCFY7.61%
SpS33.46
BVpS16.38
TBVpS-45.25
PEG (NY)N/A
PEG (5Y)N/A
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 1.17%
ROE 5.65%
ROCE 4.04%
ROIC 2.53%
ROICexc 2.6%
ROICexgc 21.49%
OM 8.72%
PM (TTM) 2.77%
GM N/A
FCFM 10.96%
ROA(3y)1.01%
ROA(5y)N/A
ROE(3y)5.03%
ROE(5y)N/A
ROIC(3y)2.83%
ROIC(5y)2.4%
ROICexc(3y)2.94%
ROICexc(5y)2.48%
ROICexgc(3y)28.41%
ROICexgc(5y)24.67%
ROCE(3y)4.52%
ROCE(5y)3.83%
ROICexgc growth 3Y21.02%
ROICexgc growth 5Y55.56%
ROICexc growth 3Y32.5%
ROICexc growth 5Y68.37%
OM growth 3Y35.26%
OM growth 5Y74.04%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.42
Health
Industry RankSector Rank
Debt/Equity 2.4
Debt/FCF 10.74
Debt/EBITDA 5.29
Cap/Depr 8.04%
Cap/Sales 1.09%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 395.91%
Current Ratio 1.28
Quick Ratio 1.28
Altman-Z 1.12
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)8.36%
Cap/Depr(5y)10.46%
Cap/Sales(3y)1%
Cap/Sales(5y)1.22%
Profit Quality(3y)1295.58%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.12%
EPS 3Y22.47%
EPS 5YN/A
EPS Q2Q%-23.73%
EPS Next Y-11.71%
EPS Next 2Y0.84%
EPS Next 3Y6.85%
EPS Next 5Y10.06%
Revenue 1Y (TTM)7.53%
Revenue growth 3Y20.72%
Revenue growth 5Y26.45%
Sales Q2Q%8.27%
Revenue Next Year11.6%
Revenue Next 2Y12.76%
Revenue Next 3Y13.37%
Revenue Next 5Y12.98%
EBIT growth 1Y-21.69%
EBIT growth 3Y63.29%
EBIT growth 5Y120.08%
EBIT Next Year21.65%
EBIT Next 3Y19.83%
EBIT Next 5Y17.85%
FCF growth 1Y-13.93%
FCF growth 3Y16.48%
FCF growth 5Y35.49%
OCF growth 1Y-10.98%
OCF growth 3Y14%
OCF growth 5Y33.1%

Focus Financial Partners Inc / FOCS Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for Focus Financial Partners Inc?

ChartMill assigns a fundamental rating of 3 / 10 to FOCS.


What is the valuation status of Focus Financial Partners Inc (FOCS) stock?

ChartMill assigns a valuation rating of 4 / 10 to Focus Financial Partners Inc (FOCS). This can be considered as Fairly Valued.


Can you provide the profitability details for Focus Financial Partners Inc?

Focus Financial Partners Inc (FOCS) has a profitability rating of 3 / 10.


What is the valuation of Focus Financial Partners Inc based on its PE and PB ratios?

The Price/Earnings (PE) ratio for Focus Financial Partners Inc (FOCS) is 13.8 and the Price/Book (PB) ratio is 3.24.


Can you provide the dividend sustainability for FOCS stock?

The dividend rating of Focus Financial Partners Inc (FOCS) is 2 / 10 and the dividend payout ratio is 16.68%.