First Advantage Corp (FA) stock analysis
Close on Nov 11, 2026Market cap $3.70BP/E 86.2Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed9 of 30 checks passed
First Advantage passes 9 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 2/6
- Growth
- 3/6
- Past performance
- 3/6
- Financial health
- 1/6
- Dividend
- 0/6
What stands out
Revenue growing 10%+ a year
Revenue grew 24.8% a year over the last three fiscal years.
Guidance raised
First Advantage raised its full year 2026 Revenues outlook on Aug 6, 2026.
EV/EBITDA below its 5-year median
First Advantage's EV/EBITDA of 17.7 is below its 5-year median of 18.6.
P/B below the industry
First Advantage's price-to-book of 2.79 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
What to watch
Margin of safety under 20%
The price is 39.8% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $21.55 is above our fair value estimate of $15.41.
Return on equity under 15%
Return on equity was 3.3% over the last twelve months and averaged -0.3% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 4.2%, below the 10% that usually covers the cost of capital.
Valuation2/6
P/E above its 5-year median
First Advantage's P/E of 86.2 is above its own 5-year median of 56.9.
P/E above the industry
First Advantage's P/E of 86.2 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA below its 5-year median
First Advantage's EV/EBITDA of 17.7 is below its 5-year median of 18.6.
P/B below the industry
First Advantage's price-to-book of 2.79 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading above fair value
The share price of $21.55 is above our fair value estimate of $15.41.
Margin of safety under 20%
The price is 39.8% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 24.8% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 17.7% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance raised
First Advantage raised its full year 2026 Revenues outlook on Aug 6, 2026.
Gross margin trend
This company does not report gross profit.
Past performance3/6
Return on equity under 15%
Return on equity was 3.3% over the last twelve months and averaged -0.3% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 4.2%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
First Advantage's return on equity of 3.3% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 2.5% over the last twelve months, against a 5-year average of 0.0%.
Net margin above the industry
First Advantage's net margin of 2.5% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health1/6
High debt
Debt is 150% of shareholders' equity, above the 40% we consider low.
Debt rising against equity
Debt to equity rose from 98.9% five years ago to 150%.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 12.7% of total debt; we look for at least 20%.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 2.45 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.59; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
First Advantage has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$15.41
The share price is 40% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 41.6× | 56.9× | 27.6× | $10.39 | 40% |
| EV/EBITDA | 18.7× | 18.6× | 18.8× | $23.36 | 35% |
| P/B | 2.7× | 2.1× | 3.3× | $21.17 | 10% |
| Earnings power | 11.3% cost of equity | – | – | $6.44 | 15% |
| Fair value | $15.41 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 56.9
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $43.05M
- Value traded per 1% price move
- $15.65M
Downside
High risk
- Typical loss in a bad month
- 32.4%
- Volatility (annualized)
- 61%
- Sharpe ratio, 1 year
- 0.96
- Beta to the S&P 500 (5Y)
- 1.29
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +83.0% | +24.8% | – | – | |
| Operating income | – | +12.0% | – | – | |
| Free cash flow | +611.9% | -3.0% | – | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | -2.7% | |
| Return on assets | – | – | -0.9% | |
| Current ratio | – | 2.84 | 2.44 | |
| Debt to equity | – | 0.99 | 1.58 | |
| Net debt to EBITDA | – | – | 7.53× | |
| Interest coverage | – | – | – | |
| Capex to revenue | – | – | 0.4% | |
| Diluted shares | – | – | 173M |
Where the cash went
Fiscal 2021 to 2025, five years combined
First Advantage generated $747.59M from operations and spent $143.93M on capital expenditure, dividends and share buybacks. 17% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -2.2% | 0.41× | 2.96× | -2.7% |
| FY2024 | -12.8% | 0.31× | 2.51× | -10.0% |
| FY2023 | 4.9% | 0.43× | 1.73× | 3.7% |
| FY2022 | 8.0% | 0.43× | 1.67× | 5.7% |
| FY2021 | 2.3% | 0.39× | 1.89× | 1.7% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$34.82M
- Cash generatingOperating cash flow above zero$195.13M
- Return on assets improvedROA up on the prior year-6.8% → -0.9%
- Earnings backed by cashOperating cash flow above net income$195.13M vs -$34.82M
- Less leverageLong-term debt to assets fell54.1% → 54.3%
- Better liquidityCurrent ratio rose1.90 → 2.44
- No dilutionShare count did not rise149M → 173M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.53 → 0.40
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