(FCFS) FirstCash - Ratings and Ratios

FirstCash Holdings, Inc. (NASDAQ:FCFS) operates as a leading retail pawn store chain in the United States, Mexico, and other Latin American countries. The company is divided into three core segments: U.S. Pawn, Latin America Pawn, and Retail POS Payment Solutions. Its pawn stores provide short-term collateralized loans on personal items such as jewelry, electronics, tools, and musical instruments. Additionally, the company generates revenue by selling merchandise acquired through forfeited collateral and direct purchases from customers. The Retail POS Payment Solutions segment focuses on point-of-sale financing and other payment options for both physical and e-commerce merchants, targeting cash-strapped and credit-constrained consumers. Formerly known as FirstCash, Inc., the company rebranded as FirstCash Holdings, Inc. in December 2021. It was founded in 1988 and is headquartered in Fort Worth, Texas.

The companys operations are supported by a network of over 1,000 pawn stores across its operating regions, with a strong presence in Latin America, where it has expanded significantly over the past decade. Its pawn business model is resilient to economic downturns, as demand for small-dollar loans and secondhand merchandise often increases during financial stress. The Retail POS Payment Solutions segment complements its core pawn operations by offering financing options to merchants, further diversifying its revenue streams. FirstCash Holdings, Inc. has a proven track record of acquisitions, having grown its store count through strategic purchases in key markets.

3-Month Forecast: - Technical Outlook: FCFS is trading above its 20-, 50-, and 200-day SMAs, indicating a bullish trend. The stock has recently broken above the 20-day SMA of $122.08, with the 50-day SMA at $118.14 and 200-day SMA at $112.15 providing strong support levels. The ATR of $3.90 suggests moderate volatility, with potential upside targeting the $140 level. - Fundamental Outlook: With a forward P/E of 15.36 and an ROE of 12.60%, FCFS is positioned for steady growth. The companys market cap of $5.4 billion reflects its established presence in the consumer finance sector. Expect continued expansion in Latin America and potential margin improvements in the POS payment solutions segment. Price Targets: - Bullish Scenario: $135 - $140 (short-term resistance levels). - Bearish Scenario: $118 - $122 (support levels aligned with 50-day SMA).