Logo image of FOCS

Focus Financial Partners Inc (FOCS) Stock Fundamental Analysis

NASDAQ:FOCS - Nasdaq - US34417P1003 - Common Stock - Currency: USD

52.99  -0.01 (-0.02%)

After market: 52.97 -0.02 (-0.04%)

Fundamental Rating

3

Taking everything into account, FOCS scores 3 out of 10 in our fundamental rating. FOCS was compared to 233 industry peers in the Capital Markets industry. Both the profitability and financial health of FOCS have multiple concerns. FOCS has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

Quickly go to:

3

1. Profitability

1.1 Basic Checks

In the past year FOCS was profitable.
FOCS had a positive operating cash flow in the past year.
In multiple years FOCS reported negative net income over the last 5 years.
Each year in the past 5 years FOCS had a positive operating cash flow.
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 2015 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.
FOCS's Return On Equity of 5.65% is in line compared to the rest of the industry. FOCS outperforms 40.59% of 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.
FOCS had an Average Return On Invested Capital over the past 3 years of 2.83%. This is significantly below the industry average of 7.84%.
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 2015 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.
With a Operating Margin value of 8.72%, FOCS is not doing good in the industry: 80.20% of the companies in the same industry are doing better.
FOCS's Operating Margin has improved in the last couple of years.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10

More info and screens

2

2. Health

2.1 Basic Checks

FOCS has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, FOCS has a worse debt to assets ratio.
FOCS Yearly Shares OutstandingFOCS Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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.
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.
FOCS has a Debt to FCF ratio (10.74) which is in line with its industry peers.
A Debt/Equity ratio of 2.40 is on the high side and indicates that FOCS has dependencies on debt financing.
FOCS has a Debt to Equity ratio of 2.40. This is in the lower half of the industry: FOCS underperforms 78.22% of its industry peers.
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 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 1.28 indicates that FOCS should not have too much problems paying 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.
A Quick Ratio of 1.28 indicates that FOCS should not have too much problems paying its short term obligations.
FOCS has a Quick ratio (1.28) which is in line with its industry peers.
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 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M

More info and screens

6

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%.
The Earnings Per Share has been growing by 22.47% on average over the past years. This is a very strong growth
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

The Earnings Per Share is expected to grow by 10.06% on average over the next years. This is quite good.
Based on estimates for the next years, FOCS will show a quite strong growth in Revenue. The Revenue will grow by 12.98% on average per year.
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

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
FOCS Yearly Revenue VS EstimatesFOCS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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

More info and screens

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.80, which indicates a correct valuation of FOCS.
FOCS's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.15, FOCS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.87, the valuation of FOCS can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as FOCS.
FOCS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
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 5 10 15 20 25

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.
60.89% of the companies in the same industry are more expensive than FOCS, based on the Price/Free Cash Flow ratio.
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%

More info and screens

2

5. Dividend

5.1 Amount

FOCS has a yearly dividend return of 0.56%, which is pretty low.
FOCS's Dividend Yield is slightly below the industry average, which is at 8.00.
Compared to an average S&P500 Dividend Yield of 2.42, FOCS's dividend is way lower than the S&P500 average.
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 2015 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

More info and screens

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 2023-08-03/bmo
Earnings (Next)11-01 2023-11-01/bmo
Inst Owners0.11%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change0%
Market Cap3.50B
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
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%
ROICexcg growth 3Y21.02%
ROICexcg 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%