First Advantage Corp

Consumer Discretionary
Business Services
www.fadv.com

Earnings Score
Moat Score
Safety Score

Market Cap $2.88B
PE 586
Debt $559.84M
Cash $307.48M
EV $3.13B
FCF $168.93M

Earnings

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Sales & Net Margins

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Earnings	$4.91M
EBIT	$47.67M
ROE	1%
ROA	3%
FCF	$168.93M
Equity	$920.71M
Growth Stability	100%
PE	586.28
PEG	-28.42
PB	3.12
P/FCF	17.03
P/S	3.81
Price/Cash	0.11
Debt/Equity	0.61
Debt/FCF	3.31
Net Margins	-2%
Op. Margins	6%
Earnings CAGR	-21%
Sales Growth YoY	-1%
Sales Growth QoQ	8%
Sales CAGR	8%
FCF CAGR	18%
Equity CAGR	4%
Earnings Stability	-0.59
Earnings Growth YoY	-182%
Earnings Growth QoQ	-576%

Earnings CAGR 5Y	-21%
Sales CAGR 5Y	8%
FCF CAGR 5Y	18%
Equity CAGR 5Y	4%
Earnings CAGR 3Y	-0%
Sales CAGR 3Y	-0%
FCF CAGR 3Y	-1%
Equity CAGR 3Y	-11%
Market Cap	$2.88B
Revenue	$755.64M
Assets	$1.66B
Total Debt	$559.84M
Cash	$307.48M
Shares Outstanding	143.85M
EV	3.13B
Earnings Score	6%
Moat Score	22%
Safety Score	90%
Final Score	39%
Working Capital	345.62M
Current Ratio	3.85
Shares Growth 3y	-1%
Equity Growth QoQ	1%
Equity Growth YoY	4%

Assets & ROA

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Stockholders Equity & ROE

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First Advantage Corp is a risk mitigation and business solutions provider. It operates in six primary business segments: Lender Services, Data Services, Dealer Services, Employer Services, Multifamily Services and Investigative & Litigation Support Services.

SEC Filings

Direct access to First Advantage Corp (FA) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does First Advantage Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of First Advantage Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -21%

Stability -59%

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First Advantage Corp Discounted Cash Flow

Fully customizable DCF calculator online for First Advantage Corp.

Years

Calculation mode

= $5.9B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$169M	$199M	$235M	$277M	$327M	$386M	$455M	$537M	$634M	$747M	$882M	$8.8B
DCF		$181M	$194M	$208M	$223M	$240M	$257M	$276M	$296M	$317M	$340M	$3.4B
Value	$5.9B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	01/2020	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-99%	-10%	2%	8%	5%	-2%
ROA	-	-0%	3%	5%	5%	3%
ROE	-	-6%	1%	6%	4%	1%

Bad Net Margins (-1.79%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	01/2020	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	12.12	3.99	2.73	3.51	3.31
Debt over Equity	-	1.03	0.5	0.5	0.62	0.61
Growth Stability	-	-	-	-	100%	100%

Neutral Debt/FCF ratio (3.31)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.61)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	01/2020	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	1K%	51%	14%	-6%	8%
Earnings YoY growth	-	30%	-134%	302%	-42%	-21%
Equity YoY growth	-	2%	43%	-0%	-20%	4%
FCF YoY growth	-	-435%	109%	46%	-22%	18%