(FA) First Advantage - Overview
Stock: Background, Screening, Verification, Monitoring, Compliance
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 81.4% |
| Relative Tail Risk | -9.46% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.77 |
| Alpha | -55.65 |
| Character TTM | |
|---|---|
| Beta | 1.157 |
| Beta Downside | 1.022 |
| Drawdowns 3y | |
|---|---|
| Max DD | 41.18% |
| CAGR/Max DD | -0.01 |
Description: FA First Advantage January 11, 2026
First Advantage Corp (NASDAQ: FA) is a global provider of employment-background screening, identity verification, and post-onboarding monitoring services. Its product suite spans pre-hire checks (criminal, drug, education, driver records, biometric fraud tools, etc.) and post-hire compliance (continuous criminal monitoring, I-9 verification, sanctions screening, social-media vetting, and related risk-management solutions). The offerings are sold to recruiting, HR, risk, compliance, and security teams across large enterprises, mid-size firms, and small businesses.
According to the company’s FY 2023 filing, FA generated roughly **$1.2 billion in revenue**, representing an **~8 % year-over-year increase** and an **operating margin near 12 %**. The business is highly concentrated in the United States (≈ 70 % of revenue) but has been expanding its international footprint, with Europe and APAC together accounting for about 20 % of sales. The firm’s **annual recurring revenue (ARR) growth rate**-a key KPI for subscription-driven screening platforms-is reported at **~10 %** YoY, indicating a steady shift toward higher-margin recurring contracts.
Key economic and sector drivers include: (1) **Tight labor markets** that push employers to accelerate hiring while demanding rigorous risk controls; (2) **Increasing regulatory scrutiny** (e.g., GDPR, EEOC, and state-level background-check laws) that fuels demand for compliant verification solutions; and (3) **Growth of the gig and contingent workforce**, which expands the addressable market for continuous monitoring and credential validation services. Base-rate analysis of the U.S. background-check market suggests a **CAGR of ~7 % through 2028**, providing a favorable tailwind for FA’s growth outlook.
For a deeper quantitative assessment of FA’s valuation and risk profile, you might explore ValueRay’s analyst dashboard, which aggregates peer-adjusted multiples and scenario-based forecasts.
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income: -138.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -9.04 > 1.0 |
| NWC/Revenue: 20.70% < 20% (prev 45.74%; Δ -25.03% < -1%) |
| CFO/TA 0.01 > 3% & CFO 43.5m > Net Income -138.7m |
| Net Debt (1.90b) to EBITDA (254.8m): 7.47 < 3 |
| Current Ratio: 2.26 > 1.5 & < 3 |
| Outstanding Shares: last quarter (175.5m) vs 12m ago 21.83% < -2% |
| Gross Margin: 45.88% > 18% (prev 0.49%; Δ 4539 % > 0.5%) |
| Asset Turnover: 53.01% > 50% (prev 45.60%; Δ 7.41% > 0%) |
| Interest Coverage Ratio: 0.09 > 6 (EBITDA TTM 254.8m / Interest Expense TTM 153.5m) |
Altman Z'' 0.29
| A: 0.08 (Total Current Assets 542.4m - Total Current Liabilities 239.8m) / Total Assets 3.86b |
| B: -0.05 (Retained Earnings -198.1m / Total Assets 3.86b) |
| C: 0.00 (EBIT TTM 13.0m / Avg Total Assets 2.76b) |
| D: -0.09 (Book Value of Equity -222.4m / Total Liabilities 2.55b) |
| Altman-Z'' Score: 0.29 = B |
Beneish M -2.18
| DSRI: 1.08 (Receivables 304.7m/145.8m, Revenue 1.46b/755.6m) |
| GMI: 1.08 (GM 45.88% / 49.48%) |
| AQI: 1.16 (AQ_t 0.79 / AQ_t-1 0.68) |
| SGI: 1.93 (Revenue 1.46b / 755.6m) |
| TATA: -0.05 (NI -138.7m - CFO 43.5m) / TA 3.86b) |
| Beneish M-Score: -2.18 (Cap -4..+1) = BB |
What is the price of FA shares?
Over the past week, the price has changed by -11.56%, over one month by -21.03%, over three months by -13.48% and over the past year by -37.12%.
Is FA a buy, sell or hold?
- StrongBuy: 2
- Buy: 2
- Hold: 6
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the FA price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 17.6 | 47.2% |
| Analysts Target Price | 17.6 | 47.2% |
| ValueRay Target Price | 11.6 | -2.6% |
FA Fundamental Data Overview February 03, 2026
P/S = 1.6083
P/B = 1.7457
Revenue TTM = 1.46b USD
EBIT TTM = 13.0m USD
EBITDA TTM = 254.8m USD
Long Term Debt = 2.10b USD (from longTermDebt, last quarter)
Short Term Debt = 3.67m USD (from shortTermDebt, last quarter)
Debt = 2.12b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.90b USD (from netDebt column, last quarter)
Enterprise Value = 4.25b USD (2.35b + Debt 2.12b - CCE 216.8m)
Interest Coverage Ratio = 0.09 (Ebit TTM 13.0m / Interest Expense TTM 153.5m)
EV/FCF = 149.5x (Enterprise Value 4.25b / FCF TTM 28.4m)
FCF Yield = 0.67% (FCF TTM 28.4m / Enterprise Value 4.25b)
FCF Margin = 1.95% (FCF TTM 28.4m / Revenue TTM 1.46b)
Net Margin = -9.49% (Net Income TTM -138.7m / Revenue TTM 1.46b)
Gross Margin = 45.88% ((Revenue TTM 1.46b - Cost of Revenue TTM 790.9m) / Revenue TTM)
Gross Margin QoQ = 45.73% (prev 46.79%)
Tobins Q-Ratio = 1.10 (Enterprise Value 4.25b / Total Assets 3.86b)
Interest Expense / Debt = 1.93% (Interest Expense 40.9m / Debt 2.12b)
Taxrate = 21.0% (US default 21%)
NOPAT = 10.3m (EBIT 13.0m * (1 - 21.00%))
Current Ratio = 2.26 (Total Current Assets 542.4m / Total Current Liabilities 239.8m)
Debt / Equity = 1.63 (Debt 2.12b / totalStockholderEquity, last quarter 1.30b)
Debt / EBITDA = 7.47 (Net Debt 1.90b / EBITDA 254.8m)
Debt / FCF = 66.88 (Net Debt 1.90b / FCF TTM 28.4m)
Total Stockholder Equity = 1.30b (last 4 quarters mean from totalStockholderEquity)
RoA = -5.03% (Net Income -138.7m / Total Assets 3.86b)
RoE = -10.69% (Net Income TTM -138.7m / Total Stockholder Equity 1.30b)
RoCE = 0.38% (EBIT 13.0m / Capital Employed (Equity 1.30b + L.T.Debt 2.10b))
RoIC = 0.30% (NOPAT 10.3m / Invested Capital 3.42b)
WACC = 6.08% (E(2.35b)/V(4.47b) * Re(10.18%) + D(2.12b)/V(4.47b) * Rd(1.93%) * (1-Tc(0.21)))
Discount Rate = 10.18% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 10.04%
[DCF Debug] Terminal Value 83.20% ; FCFF base≈81.9m ; Y1≈66.8m ; Y5≈47.1m
Fair Price DCF = N/A (negative equity: EV 1.37b - Net Debt 1.90b = -535.7m; debt exceeds intrinsic value)
EPS Correlation: -37.77 | EPS CAGR: -45.85% | SUE: -4.0 | # QB: 0
Revenue Correlation: 67.94 | Revenue CAGR: 19.08% | SUE: 0.70 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.21 | Chg30d=-0.005 | Revisions Net=-1 | Analysts=9
EPS next Year (2026-12-31): EPS=1.18 | Chg30d=-0.002 | Revisions Net=-1 | Growth EPS=+17.9% | Growth Revenue=+5.0%