F

First Advantage Corp
NASDAQ:FA

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First Advantage Corp
NASDAQ:FA
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Price: 17.56 USD -3.09% Market Closed
Market Cap: 2.6B USD
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Intrinsic Value

The intrinsic value of one FA stock under the Base Case scenario is 19.44 USD. Compared to the current market price of 17.56 USD, First Advantage Corp is Undervalued by 10%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

FA Intrinsic Value
19.44 USD
Undervaluation 10%
Intrinsic Value
Price
F
Worst Case
Base Case
Best Case

Valuation Backtest
First Advantage Corp

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Notes
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(gross, operating, and net) of First Advantage Corp compared to its peers.

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
First Advantage Corp

Current Assets 427.2m
Cash & Short-Term Investments 269.6m
Receivables 137.9m
Other Current Assets 19.8m
Non-Current Assets 1.2B
PP&E 63.5m
Intangibles 1.1B
Other Non-Current Assets 11.1m
Current Liabilities 99.1m
Accounts Payable 55.5m
Accrued Liabilities 41m
Other Current Liabilities 2.6m
Non-Current Liabilities 623.5m
Long-Term Debt 559.4m
Other Non-Current Liabilities 64.2m
Efficiency

Earnings Waterfall
First Advantage Corp

Revenue
756.9m USD
Cost of Revenue
-382.2m USD
Gross Profit
374.7m USD
Operating Expenses
-312.9m USD
Operating Income
61.8m USD
Other Expenses
-37.2m USD
Net Income
24.6m USD

Free Cash Flow Analysis
First Advantage Corp

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

First Advantage reported solid Q2 2024 results with $185 million in revenues and a 30.2% adjusted EBITDA margin. The company is on track with its annual guidance of $750-800 million in revenues and $228-248 million in adjusted EBITDA. The Sterling acquisition is progressing, anticipated to close in Q4 2024, supported by $1.6 billion in new term debt. The company foresees substantial synergies ($50-70 million) and plans to reduce net leverage to around 3x adjusted EBITDA within 24 months. There's cautious optimism in hiring trends, a strong upsell/cross-sell performance, and a focus on risk management and automation【4:0†source】【4:1†source】【4:2†source】.

What is Earnings Call?
Fundamental Scores

FA Profitability Score
Profitability Due Diligence

First Advantage Corp's profitability score is 52/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
Positive 3-Years Revenue Growth
Positive Revenue Growth Forecast
52/100
Profitability
Score

First Advantage Corp's profitability score is 52/100. The higher the profitability score, the more profitable the company is.

FA Solvency Score
Solvency Due Diligence

First Advantage Corp's solvency score is 50/100. The higher the solvency score, the more solvent the company is.

Short-Term Solvency
Long-Term Solvency
Low D/E
Average Altman Z-Score
50/100
Solvency
Score

First Advantage Corp's solvency score is 50/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

FA Price Targets Summary
First Advantage Corp

Wall Street analysts forecast FA stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for FA is 19.72 USD with a low forecast of 16.16 USD and a high forecast of 22.05 USD.

Lowest
Price Target
16.16 USD
8% Downside
Average
Price Target
19.72 USD
12% Upside
Highest
Price Target
22.05 USD
26% Upside
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Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
Very
Unsafe
Unsafe
Safe
Very
Safe
0
25
50
75
100
Shareholder Yield

Current shareholder yield for FA is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
Lowest
Average
Highest
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Ownership

FA Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Profile

First Advantage Corp

Country

United States of America

Industry

Professional Services

Market Cap

2.6B USD

Dividend Yield

0%

Description

First Advantage Corp. provides technology solutions for screening, verifications, safety, and compliance related to human capital. The company is headquartered in Atlanta, Georgia and currently employs 5,500 full-time employees. The company went IPO on 2021-06-23. The firm provides technology solutions for screening, verification, safety, and compliance related to human capital. Its product suite enables its customers across all industry sectors to perform pre-onboarding screening and post-onboarding monitoring of employees, contractors, contingent and extended workers, drivers, tenants, and volunteers. Its pre-onboarding products include criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, driver records and compliance, healthcare credentials, executive screening and others. Its post-onboarding solutions include criminal records monitoring, healthcare sanctions, motor vehicle records, social media and global sanctions and licenses. The company also offers fleet compliance, hiring tax credits and incentives, tenant screening and investigative research.

Contact

GEORGIA
Atlanta
1 Concourse Parkway NE, Suite 200
+18883149761.0
fadv.com

IPO

2021-06-23

Employees

5 500

Officers

CEO & Director
Mr. Scott Staples
President
Ms. Joelle M. Smith
CFO & Executive VP
Mr. David L. Gamsey
Chief Legal Officer & Secretary
Mr. Bret T. Jardine ESQ.
President of Americas
Mr. Joseph K. Jaeger
Chief Accounting Officer
Mr. Steven Marks
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Vice President of Investor Relations
Ms. Stephanie D. Gorman
Director of Corporate Communications
Mariah Mellor
Chief Human Resources Officer
Mr. Michael E. Pilnick
Executive VP & GM International
Mr. Rolf Bezemer
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See Also

Discover More
What is the Intrinsic Value of one FA stock?

The intrinsic value of one FA stock under the Base Case scenario is 19.44 USD.

Is FA stock undervalued or overvalued?

Compared to the current market price of 17.56 USD, First Advantage Corp is Undervalued by 10%.

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