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First Advantage Corporation (FA) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

First Advantage Corporation

FAMarket cap $3.16BPrice $18.4

Country🇺🇸United States

SectorIndustrials

IndustryProfessional Services

First Advantage runs background checks and screening services for employers, verifying millions of job candidates every year. It's the hidden gatekeeper deciding who actually gets hired across corporate America.

In Bastion Portfolios?

52W Return+31%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+25%9

Revenue Forecast

Rev CAGR (1y)+9%6

Rev CAGR (3y)+8%6

Rev CAGR (5y)+6%5

Earnings Forecast

EPS Growth Y+10%5

EPS Growth Y+2+17%8

EPS Growth Y+3+20%8

Quality

Margins

EBIT Margin10%4

Net Income Margin2%2

Free Cash Flow Margin15%7

Debt

Net Debt/EBITDA4.22

Efficiency

ROE2%2

ROA1%2

Earnings Stability44

GEAR+WEAK22

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)146

P/E Ratio (Forward 3y)107

P/BV2.46

EV Multiples

EV/EBITDA Fwd106

EV/EBIT Fwd223

Yield

Free Cash Flow Yield7.9%8

Dividend Yieldna–

Momentum

Short term

1 month return-11%2

3 month return-7%4

YTD return+26%8

Mid term

Price vs 52wHigh73%4

1 year return+22%7

Long term

3 year return+29%4

5 year return-3%3

Risk Shield

Price Risk

Beta1.42

Volatility59%2

Free Cash Flow

Free Cash Flow Margin15%7

Free Cash Flow Yield7.9%8

Quality

ROCE5%3

Earnings Stability44

Net Debt/EBITDA4.22

02Growth

Is it actually growing, and how fast?

FAFirst Advantage

Revenue FY25$1.6B

GROWTH RATING↗

AVERAGE59 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+25%9

Revenue, next 1Y+9%6

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+6%5

EARNINGS FORECAST▾SCORE

EPS growth, FY26E0%5

EPS growth, FY27E+17%8

EPS growth, FY28E+20%8

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 25%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

Earnings are set to grow faster than sales (EPS about 17%/yr vs revenue 8%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 59% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 25%/yr over the last 3 years; forecasts see it cooling to 8%/yr.

Over five years revenue is set to grow 6%/yr, about average versus companies worldwide.5/10

WEAKNESSES

None flagged.

BOTTOM LINE

Maturing Grower

A middle-of-the-pack grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK24 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-11%2

3-month return-7%4

YTD return+26%8

MID & LONG-TERM▾SCORE

% of 52-week high73%4

1-year return+22%7

3-year return+29%4

5-year return-3%3

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming so far this year (+26%).

WATCH

It's up 22% over the past year, but 27% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over three months (-7%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+29% over three years and -3.1% over five), behind 60% of the market.

The stock is underperforming over the past month (-11%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on First Advantage Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

FAFirst Advantage

Revenue FY25$1.6B

GROWTH RATING↗

AVERAGE59 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+25%9

Revenue, next 1Y+9%6

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+6%5

EARNINGS FORECAST▾SCORE

EPS growth, FY26E0%5

EPS growth, FY27E+17%8

EPS growth, FY28E+20%8

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 25%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

Earnings are set to grow faster than sales (EPS about 17%/yr vs revenue 8%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 59% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 25%/yr over the last 3 years; forecasts see it cooling to 8%/yr.

Over five years revenue is set to grow 6%/yr, about average versus companies worldwide.5/10

WEAKNESSES

None flagged.

BOTTOM LINE

Maturing Grower

A middle-of-the-pack grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK24 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-11%2

3-month return-7%4

YTD return+26%8

MID & LONG-TERM▾SCORE

% of 52-week high73%4

1-year return+22%7

3-year return+29%4

5-year return-3%3

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming so far this year (+26%).

WATCH

It's up 22% over the past year, but 27% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over three months (-7%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+29% over three years and -3.1% over five), behind 60% of the market.

The stock is underperforming over the past month (-11%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on First Advantage Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community