FA Stock Analysis: First Advantage | NASDAQ

Specialty Business Services | NASDAQ, USA | Market Cap: 3.352m USD | 12M Return: 19.8% | Charts, Fundamentals & Technical Analysis

Background Screening, Identity Verification, Drug Screening, Compliance

Total Rating 55

Safety 67

Buy Signal 1.34

Specialty Business Services
Industry Rotation: -3.1

Market Cap: 3.35B
Avg Turnover: 34.2M

Risk 3d forecast

Volatility39.4%

VaR 5^th Pctl6.28%

VaR vs Median-3.01%

Reward TTM

Sharpe Ratio0.52

Rel. Str. IBD90.8

Rel. Str. Peer Group90.6

Character TTM

Beta1.216

Beta Downside1.088

Hurst Exponent0.509

Drawdowns 3y

Max DD55.91%

CAGR/Max DD0.25

CAGR/Mean DD0.94

EPS (Earnings per Share)

EPS CAGR: -13.82%
EPS Trend: -83.3%

Last SUE: 1.78
Qual. Beats: 2

Revenue

Rev. CAGR: 36.96%
Rev. Trend: 90.5%

Last SUE: 1.01
Qual. Beats: 2

Warnings

P/E Ratio 390.8

Tailwinds

Supp Ema20

Rs Leader

Idiosyncratic Leader

Avwap Ph Week

Seasonality 5 years of data

Jan -1.0% 0

Feb -7.2% 22

Mar +0.8% 0

Apr -0.7% 0

May +13.7% 25

Jun +0.6% 9

Jul +5.2% 24

Aug +3.8% 23

Sep -1.8% 22

Oct -7.3% 23

Nov +8.4% 24

Dec +2.8% 24

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.

Description: FA First Advantage

First Advantage Corporation (NASDAQ: FA) is a US-based provider of employment background screening, digital identity, and verification solutions, operating internationally and headquartered in Atlanta, Georgia. The company was founded in 2002 and rebranded from Fastball Intermediate, Inc. in March 2021, with its IPO following in June 2021. It operates within the Industrials sector, specifically the Human Resource & Employment Services sub-industry, serving executive management, human resources, talent acquisition, risk, compliance, vendor management, and safety functions across global enterprises, mid-sized firms, and small companies.

Its offering is structured around three main categories. Pre-onboarding products include criminal background checks, drug and health screening, extended workforce screening, FBI channeling, identity checks with biometric fraud mitigation, education and work history verification, driver records and compliance, healthcare credentials, and executive screening. Post-onboarding solutions cover criminal records monitoring, I-9 verification, healthcare sanctions, motor vehicle records, social media screening, and global sanctions and licenses. Adjacent products round out the portfolio with fleet and vehicle compliance, hiring tax credits and incentives, and investigative research.

The business model is B2B, monetizing subscriptions, per-check fees, and ongoing monitoring services sold primarily to employer clients on a recurring or transactional basis. Its end markets span industries with stringent regulatory or workforce screening requirements, such as healthcare, transportation, financial services, and government contracting.

Headlines to Watch Out For

U.S. hiring slowdown pressures background screening volumes
FCRA regulatory changes drive demand for compliance services
Checkr competition pressures pricing in SMB screening segment

Piotroski VR-10 (Strict) 4.0

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 (1.85b) to EBITDA (411.1m): 4.49 < 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 46.98%; Δ -10.71% > 0.5%)
Asset Turnover: 42.09% > 50% (prev 27.00%; Δ 15.09% > 0%)
Interest Coverage Ratio: 1.07 > 6 (EBIT TTM 162.0m / Interest Expense TTM 151.9m)

Altman Z'' 1.24

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 162.0m / Avg Total Assets 3.81b)
D: 0.53 (Book Value of Equity 1.29b / Total Liabilities 2.46b)
Altman-Z'' = 1.24 = BB

Beneish M -2.63

DSRI: 0.70 (Receivables 292.0m/270.0m, Revenue 1.61b/1.05b)
GMI: 1.30 (GM 46.98% / 36.26%)
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 = -2.63 (Cap -4..+1) = A

What is the price of FA shares?

As of July 14, 2026, the stock is trading at USD 20.58 with a total of 1,589,433 shares traded. Over the past week, the price has changed by +2.13%, over one month by +21.13%, over three months by +76.73% and over the past year by +19.79%.

Current recommended Stop Loss: 19.60 (which is 4.8% or 1.3 ATR below the current price).

Is FA a buy, sell or hold?

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

What are the forecasts/targets for the FA price?

Analysts Target Price	18.9	-8.4%

First Advantage (FA) - Fundamental Data Overview as of 14 July 2026

Market Cap USD = 3.35b (3.35b USD * 1.0 USD.USD)
P/E Trailing = 390.8
P/E Forward = 16.2866
P/S = 2.0884
P/B = 2.5907
Revenue TTM = 1.61b USD
EBIT TTM = 162.0m USD
EBITDA TTM = 411.1m 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 (from shortLongTermDebtTotal, last quarter) + Leases 8.23m
Net Debt = 1.85b USD (calculated: Debt 2.07b - CCE 225.9m)
Enterprise Value = 5.20b USD (3.35b + Debt 2.07b - CCE 225.9m)
Interest Coverage Ratio = 1.07 (Ebit TTM 162.0m / Interest Expense TTM 151.9m)
EV/FCF = 23.78x (Enterprise Value 5.20b / FCF TTM 218.7m)
FCF Yield = 4.21% (FCF TTM 218.7m / Enterprise Value 5.20b)
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 = 1.38 (Enterprise Value 5.20b / Total Assets 3.75b)
Interest Expense / Debt = 7.33% (Interest Expense 151.9m / Debt 2.07b)
Taxrate = 34.40% (1.14m / 3.31m)
NOPAT = 106.3m (EBIT 162.0m * (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 = 4.49 (Net Debt 1.85b / EBITDA 411.1m)
Debt / FCF = 8.45 (Net Debt 1.85b / 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 = 0.66% (Net Income TTM 8.54m / Total Stockholder Equity 1.30b)
RoCE = 4.82% (EBIT 162.0m / Capital Employed (Equity 1.30b + L.T.Debt 2.06b))
RoIC = 3.06% (NOPAT 106.3m / Invested Capital 3.47b)
WACC = 8.18% (E(3.35b)/V(5.43b) * Re(10.26%) + D(2.07b)/V(5.43b) * Rd(7.33%) * (1-Tc(0.34)))
Discount Rate = 10.26% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 68.89 | Cagr: 8.71%
[DCF] Terminal Value 77.97% ; FCFF base≈132.6m ; Y1≈152.0m ; Y5≈223.7m
[DCF] Fair Price = 8.85 (EV 3.37b - Net Debt 1.85b = Equity 1.52b / Shares 171.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -83.26 | EPS CAGR: -13.82% | SUE: 1.78 | # QB: 2
Revenue Correlation: 90.50 | Revenue CAGR: 36.96% | SUE: 1.01 | # QB: 2
EPS current Quarter (2026-06-30): EPS=0.29 | Chg30d=+0.00% | Revisions=-12% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.34 | Chg30d=+0.00% | Revisions=-25% | Analysts=10
EPS current Year (2026-12-31): EPS=1.22 | Chg30d=+0.00% | Revisions=+75% | GrowthEPS=+17.8% | GrowthRev=+6.3%
EPS next Year (2027-12-31): EPS=1.43 | Chg30d=+0.00% | Revisions=+73% | GrowthEPS=+16.6% | GrowthRev=+6.9%
[Analyst] Revisions Ratio: +38% (up=22, down=9)