FirstCash Holdings, Inc. (FCFS) stock analysis

P/E below its 5-year median

FirstCash's P/E of 19.9 is below its own 5-year median of 22.1.

P/E above the industry

FirstCash's P/E of 19.9 is above the Miscellaneous Retail median of 17.9.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

FirstCash's price-to-book of 3.47 is above the Miscellaneous Retail median of 2.05.

Trading above fair value

The share price of $184.00 is above our fair value estimate of $165.46.

Margin of safety under 20%

The price is 11.2% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 10.3% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 11.4% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 31.2% over the last twelve months, against a 5-year average of 25.4% a year.

Growing faster than the industry

Revenue grew 22.9% over the last twelve months; the Miscellaneous Retail median is 10.1%.

Guidance raised

FirstCash raised its full year 2026 interest expense outlook on Jul 23, 2026.

Gross margin improving

Gross margin was 50.2% over the last twelve months, against 50.0% a year earlier.

Return on equity under 15%

Return on equity was 18.2% over the last twelve months and averaged 12.2% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

FirstCash's return on equity of 18.2% is above the Miscellaneous Retail median of -18.5%.

Earnings grew over 5 years

Net income grew 25.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 9.5% over the last twelve months, against a 5-year average of 8.1%.

Net margin above the industry

FirstCash's net margin of 9.5% is above the Miscellaneous Retail median of 1.5%.

No debt

FirstCash has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 4.81 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.05; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

FirstCash paid dividends worth 0.9% of the share price over the last twelve months.

Yield below Treasuries

The 0.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; FirstCash yields 0.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 18.1% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.