FA Stock Analysis: First Advantage | NASDAQ
Specialty Business Services | NASDAQ, USA | Market Cap: 3.973m USD | 12M Return: 70.5% | US31846B1089 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 27.5M
EPS Trend: 51.7%
Qual. Beats: 4
Rev. Trend: 94.2%
Qual. Beats: 3
Warnings
Tailwinds
Seasonality 5.3 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
First Advantage Corporation (NASDAQ: FA) is a global provider of employment background screening, digital identity, and verification solutions, serving executive management, human resources, talent acquisition, risk, compliance, and vendor management teams across large enterprises, mid-sized firms, and small companies. Its offerings span pre-onboarding products such as criminal background checks, drug and health screening, FBI channeling, biometric fraud mitigation, education and work history verification, and healthcare credential checks, as well as post-onboarding services including criminal records monitoring, I-9 verification, social media screening, and global sanctions and license monitoring, alongside adjacent solutions like fleet compliance, hiring tax credits, and investigative research.
The company operates as a business-to-business service provider within the Human Resource & Employment Services sub-industry (GICS Industrials), generating revenue primarily through contracts tied to client hiring volumes and recurring monitoring services for regulated industries such as healthcare, financial services, and transportation. Headquartered in Atlanta, Georgia, and founded in 2002, First Advantage adopted its current name in March 2021 and completed its IPO in June 2021.
- US hiring volume declines impact background screening demand
- International expansion in APAC and EMEA drives segment revenue growth
- Margin pressure persists amid technology investment and pricing competition
| Net Income: 25.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 5.77 > 1.0 |
| NWC/Revenue: 21.11% < 20% (prev 19.93%; Δ 1.18% < -1%) |
| CFO/TA 0.07 > 3% & CFO 261.3m > Net Income 25.1m |
| Net Debt (1.81b) to EBITDA (427.7m): 4.23 < 3 |
| Current Ratio: 2.53 > 1.5 & < 3 |
| Outstanding Shares: last quarter (173.2m) vs 12m ago -1.05% < -2% |
| Gross Margin: 36.27% > 18% (prev 46.48%; Δ -10.21% > 0.5%) |
| Asset Turnover: 43.66% > 50% (prev 32.33%; Δ 11.33% > 0%) |
| Interest Coverage Ratio: 1.26 > 6 (EBIT TTM 178.6m / Interest Expense TTM 141.2m) |
| A: 0.09 (Total Current Assets 581.0m - Total Current Liabilities 229.9m) / Total Assets 3.75b |
| B: -0.06 (Retained Earnings -214.1m / Total Assets 3.75b) |
| C: 0.05 (EBIT TTM 178.6m / Avg Total Assets 3.81b) |
| D: 0.53 (Book Value of Equity 1.29b / Total Liabilities 2.45b) |
| Altman-Z'' = 1.30 = BB |
| DSRI: 0.79 (Receivables 309.3m/293.0m, Revenue 1.66b/1.25b) |
| GMI: 1.28 (GM 46.48% / 36.27%) |
| AQI: 0.98 (AQ_t 0.78 / AQ_t-1 0.80) |
| SGI: 1.33 (Revenue 1.66b / 1.25b) |
| TATA: -0.06 (NI 25.1m - CFO 261.3m) / TA 3.75b) |
| Beneish M = -2.72 (Cap -4..+1) = A |
As of November 07, 2026, the stock is trading at USD 23.53 with a total of 1,137,094 shares traded. Over the past week, the price has changed by +8.99%, over one month by +27.26%, over three months by -2.45% and over the past year by +70.51%.
Current recommended Stop Loss: 20.90 (which is 11.2% or 2.7 ATR below the current price).
First Advantage has received a consensus analysts rating of 3.90. Therefore, it is recommended to buy FA.
- StrongBuy: 3
- Buy: 3
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 26 | 10.5% |
P/E Trailing = 92.52
P/E Forward = 14.4928
P/S = 2.3887
P/B = 2.9839
Revenue TTM = 1.66b USD
EBIT TTM = 178.6m USD
EBITDA TTM = 427.7m USD
Long Term Debt = 2.03b USD (from longTermDebt, last quarter)
Short Term Debt = 3.12m USD (from shortTermDebt, last quarter)
Debt = 2.05b USD (from shortLongTermDebtTotal, last quarter) + Leases 7.28m
Net Debt = 1.81b USD (calculated: Debt 2.05b - CCE 237.9m)
Enterprise Value = 5.78b USD (3.97b + Debt 2.05b - CCE 237.9m)
Interest Coverage Ratio = 1.26 (Ebit TTM 178.6m / Interest Expense TTM 141.2m)
EV/FCF = 24.01x (Enterprise Value 5.78b / FCF TTM 240.9m)
FCF Yield = 4.17% (FCF TTM 240.9m / Enterprise Value 5.78b)
FCF Margin = 14.48% (FCF TTM 240.9m / Revenue TTM 1.66b)
Net Margin = 1.51% (Net Income TTM 25.1m / Revenue TTM 1.66b)
Gross Margin = 36.27% ((Revenue TTM 1.66b - Cost of Revenue TTM 1.06b) / Revenue TTM)
Gross Margin QoQ = 45.46% (prev 28.97%)
Tobins Q-Ratio = 1.54 (Enterprise Value 5.78b / Total Assets 3.75b)
Interest Expense / Debt = 6.90% (Interest Expense 141.2m / Debt 2.05b)
Taxrate = 32.73% (12.2m / 37.4m)
NOPAT = 120.2m (EBIT 178.6m * (1 - 32.73%))
Current Ratio = 2.53 (Total Current Assets 581.0m / Total Current Liabilities 229.9m)
Debt / Equity = 1.58 (Debt 2.05b / totalStockholderEquity, last quarter 1.29b)
Debt / EBITDA = 4.23 (Net Debt 1.81b / EBITDA 427.7m)
Debt / FCF = 7.52 (Net Debt 1.81b / FCF TTM 240.9m)
Total Stockholder Equity = 1.30b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.66% (Net Income 25.1m / Total Assets 3.75b)
RoE = 1.93% (Net Income TTM 25.1m / Total Stockholder Equity 1.30b)
RoCE = 5.36% (EBIT 178.6m / Capital Employed (Equity 1.30b + L.T.Debt 2.03b))
RoIC = 3.50% (NOPAT 120.2m / Invested Capital 3.44b)
WACC = 7.27% (E(3.97b)/V(6.02b) * Re(8.63%) + D(2.05b)/V(6.02b) * Rd(6.90%) * (1-Tc(0.33)))
Discount Rate = 8.63% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.00 | Cagr: 8.70%
[DCF] Terminal Value 77.97% ; FCFF base≈154.7m ; Y1≈177.4m ; Y5≈261.1m
[DCF] Fair Price = 12.33 (EV 3.93b - Net Debt 1.81b = Equity 2.12b / Shares 171.8m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 51.73 | EPS CAGR: 7.79% | SUE: 1.27 | # QB: 4
Revenue Correlation: 94.24 | Revenue CAGR: 42.29% | SUE: 2.77 | # QB: 3
EPS current Quarter (2027-03-31): EPS=0.30 | Chg30d=+0.00% | Revisions=+57% | Analysts=7
EPS current Year (2026-12-31): EPS=1.28 | Chg30d=+0.00% | Revisions=+58% | GrowthEPS=+22.7% | GrowthRev=+8.3%
EPS next Year (2027-12-31): EPS=1.51 | Chg30d=+0.00% | Revisions=+62% | GrowthEPS=+18.0% | GrowthRev=+6.7%
[Analyst] Revisions Ratio: +73% (up=21, down=2)