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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 229 industry peers in the Capital Markets industry. FOCS has a bad profitability rating. Also its financial health evaluation is rather negative. FOCS is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

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.
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

FOCS's Return On Assets of 1.17% is in line compared to the rest of the industry. FOCS outperforms 40.59% of its industry peers.
With a Return On Equity value of 5.65%, FOCS perfoms like the industry average, outperforming 40.59% of the companies in the same industry.
FOCS has a worse Return On Invested Capital (2.53%) 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 7.23%.
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

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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.
Looking at the Altman-Z score, with a value of 1.12, FOCS is in line with its industry, outperforming 58.42% of the companies in the same industry.
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.
FOCS's Debt to FCF ratio of 10.74 is in line compared to the rest of the industry. FOCS outperforms 58.42% of its industry peers.
FOCS has a Debt/Equity ratio of 2.40. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of FOCS (2.40) is worse than 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.
FOCS's Current ratio of 1.28 is in line compared to the rest of the industry. FOCS outperforms 48.51% of its industry peers.
A Quick Ratio of 1.28 indicates that FOCS should not have too much problems paying 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 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

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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
FOCS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.53%.
FOCS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.45% yearly.
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

FOCS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.06% yearly.
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

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.
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 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

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.80 indicates a correct valuation of FOCS.
The rest of the industry has a similar Price/Earnings ratio as FOCS.
The average S&P500 Price/Earnings ratio is at 24.83. FOCS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 11.87, the valuation of FOCS can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as FOCS.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.94, FOCS is valued a bit cheaper.
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

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.
Based on the Price/Free Cash Flow ratio, FOCS is valued a bit 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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2

5. Dividend

5.1 Amount

With a yearly dividend of 0.56%, FOCS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.42, 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 2.41.
Industry RankSector 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

FOCS pays out 16.68% of its income as dividend. This is a sustainable payout ratio.
The dividend of FOCS is growing, but the earnings are growing slower. 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

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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%