(FA) First Advantage - Overview
Sector: Industrials | Industry: Specialty Business Services | Exchange: NASDAQ (USA) | Market Cap: 2.645m USD | Total Return: -6.1% in 12m
Avg Turnover: 11.1M
EPS Trend: 0.4%
Qual. Beats: 4
Rev. Trend: 90.5%
Qual. Beats: 2
Warnings
P/E ratio 308.4
Altman Z'' 0.59 < 1.0 - financial distress zone
Choppy
Tailwinds
Supp Ema20
First Advantage Corporation (FA) is a global provider of technology-driven background screening and identity verification solutions. The company’s portfolio spans the entire employment lifecycle, offering pre-onboarding services such as criminal background checks and drug testing, alongside post-onboarding monitoring for compliance, sanctions, and motor vehicle records. The business serves a diverse client base ranging from small businesses to multinational enterprises across various high-compliance sectors.
Operating within the Human Resource & Employment Services industry, the company utilizes a recurring revenue model driven by high-volume hiring cycles and regulatory mandates. The background screening sector is increasingly influenced by the integration of biometric fraud mitigation and automated digital identity tools to reduce time-to-hire. For a deeper look at the underlying fundamentals, you may find ValueRay to be a useful resource.
Founded in 2002 and headquartered in Atlanta, Georgia, the firm was previously known as Fastball Intermediate, Inc. before its 2021 rebranding. Its expanded service offerings now include adjacent solutions such as fleet compliance and the management of hiring tax credits and incentives.
- Hiring volume fluctuations in enterprise sectors directly impact background screening transaction revenue
- Sterling Check acquisition integration determines long-term margin expansion and market share gains
- Shift toward recurring post-onboarding monitoring services stabilizes non-cyclical revenue streams
- High sensitivity to white-collar employment trends and global macroeconomic labor demand
| Net Income: 8.54m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 5.74 > 1.0 |
| NWC/Revenue: 20.92% < 20% (prev 22.08%; Δ -1.16% < -1%) |
| CFO/TA 0.06 > 3% & CFO 225.1m > Net Income 8.54m |
| Net Debt (1.84b) to EBITDA (412.0m): 4.47 < 3 |
| Current Ratio: 2.65 > 1.5 & < 3 |
| Outstanding Shares: last quarter (174.9m) vs 12m ago 1.25% < -2% |
| Gross Margin: 36.26% > 18% (prev 0.47%; Δ 3.58k% > 0.5%) |
| Asset Turnover: 42.09% > 50% (prev 27.00%; Δ 15.09% > 0%) |
| Interest Coverage Ratio: 1.07 > 6 (EBITDA TTM 412.0m / Interest Expense TTM 151.9m) |
| A: 0.09 (Total Current Assets 539.3m - Total Current Liabilities 203.5m) / Total Assets 3.75b |
| B: -0.06 (Retained Earnings -212.1m / Total Assets 3.75b) |
| C: 0.04 (EBIT TTM 162.9m / Avg Total Assets 3.81b) |
| D: -0.10 (Book Value of Equity -239.2m / Total Liabilities 2.46b) |
| Altman-Z'' = 0.59 = B |
| DSRI: 0.69 (Receivables 287.7m/270.0m, Revenue 1.61b/1.05b) |
| GMI: 1.30 (GM 36.26% / 46.98%) |
| AQI: 0.99 (AQ_t 0.79 / AQ_t-1 0.80) |
| SGI: 1.54 (Revenue 1.61b / 1.05b) |
| TATA: -0.06 (NI 8.54m - CFO 225.1m) / TA 3.75b) |
| Beneish M = -2.69 (Cap -4..+1) = A |
As of May 30, 2026, the stock is trading at USD 16.00 with a total of 805,493 shares traded.
Over the past week, the price has changed by +6.38%,
over one month by +22.61%,
over three months by +39.01% and
over the past year by -6.05%.
First Advantage has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold FA.
- StrongBuy: 2
- Buy: 2
- Hold: 6
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 18.1 | 13.4% |
P/E Trailing = 308.4
P/E Forward = 12.8535
P/S = 1.648
P/B = 2.0445
Revenue TTM = 1.61b USD
EBIT TTM = 162.9m USD
EBITDA TTM = 412.0m USD
Long Term Debt = 2.06b USD (from longTermDebt, last quarter)
Short Term Debt = 3.37m USD (from shortTermDebt, last quarter)
Debt = 2.07b USD (corrected: LT Debt 2.06b + ST Debt 3.37m) + Leases 8.23m
Net Debt = 1.84b USD (calculated: Debt 2.07b - CCE 225.9m)
Enterprise Value = 4.49b USD (2.65b + Debt 2.07b - CCE 225.9m)
Interest Coverage Ratio = 1.07 (Ebit TTM 162.9m / Interest Expense TTM 151.9m)
EV/FCF = 20.52x (Enterprise Value 4.49b / FCF TTM 218.7m)
FCF Yield = 4.87% (FCF TTM 218.7m / Enterprise Value 4.49b)
FCF Margin = 13.62% (FCF TTM 218.7m / Revenue TTM 1.61b)
Net Margin = 0.53% (Net Income TTM 8.54m / Revenue TTM 1.61b)
Gross Margin = 36.26% ((Revenue TTM 1.61b - Cost of Revenue TTM 1.02b) / Revenue TTM)
Gross Margin QoQ = 28.97% (prev 23.94%)
Tobins Q-Ratio = 1.20 (Enterprise Value 4.49b / Total Assets 3.75b)
Interest Expense / Debt = 7.34% (Interest Expense 151.9m / Debt 2.07b)
Taxrate = 34.40% (1.14m / 3.31m)
NOPAT = 106.9m (EBIT 162.9m * (1 - 34.40%))
Current Ratio = 2.65 (Total Current Assets 539.3m / Total Current Liabilities 203.5m)
Debt / Equity = 1.60 (Debt 2.07b / totalStockholderEquity, last quarter 1.29b)
Debt / EBITDA = 4.47 (Net Debt 1.84b / EBITDA 412.0m)
Debt / FCF = 8.43 (Net Debt 1.84b / FCF TTM 218.7m)
Total Stockholder Equity = 1.30b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.22% (Net Income 8.54m / Total Assets 3.75b)
RoE = 0.56% (Net Income TTM 8.54m / Total Stockholder Equity 1.51b)
RoCE = 4.56% (EBIT 162.9m / Capital Employed (Equity 1.51b + L.T.Debt 2.06b))
RoIC = 3.01% (NOPAT 106.9m / Invested Capital 3.55b)
WACC = 7.87% (E(2.65b)/V(4.71b) * Re(10.26%) + D(2.07b)/V(4.71b) * Rd(7.34%) * (1-Tc(0.34)))
Discount Rate = 10.26% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 67.51 | Cagr: 8.39%
[DCF] Terminal Value 77.97% ; FCFF base≈132.6m ; Y1≈152.0m ; Y5≈223.7m
[DCF] Fair Price = 8.88 (EV 3.37b - Net Debt 1.84b = Equity 1.52b / Shares 171.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 0.39 | EPS CAGR: 0.04% | SUE: 2.35 | # QB: 4
Revenue Correlation: 90.50 | Revenue CAGR: 36.96% | SUE: 1.01 | # QB: 2
EPS current Quarter (2026-06-30): EPS=0.29 | Chg30d=-1.48% | Revisions=-11% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.34 | Chg30d=-1.94% | Revisions=-23% | Analysts=10
EPS current Year (2026-12-31): EPS=1.22 | Chg30d=+2.07% | Revisions=+69% | GrowthEPS=+17.8% | GrowthRev=+6.3%
EPS next Year (2027-12-31): EPS=1.43 | Chg30d=+0.93% | Revisions=+67% | GrowthEPS=+16.6% | GrowthRev=+6.9%
[Analyst] Revisions Ratio: +69%