First Acceptance Corporation
First Acceptance Corporation Fundamental Analysis
First Acceptance Corporation (FACO) shows moderate financial fundamentals with a PE ratio of 5.49, profit margin of 5.97%, and ROE of 16.42%. The company generates $0.5B in annual revenue with strong year-over-year growth of 14.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FACO's fundamental strength across five key dimensions:
Efficiency Score
WeakFACO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFACO trades at attractive valuation levels.
Growth Score
ModerateFACO shows steady but slowing expansion.
Financial Health Score
ModerateFACO shows balanced financial health with some risks.
Profitability Score
ModerateFACO maintains healthy but balanced margins.
Key Financial Metrics
Is FACO Expensive or Cheap?
P/E Ratio
FACO trades at 5.49 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FACO's PEG of 1.07 indicates fair valuation.
Price to Book
The market values First Acceptance Corporation at 0.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.61 times EBITDA. This is generally considered low.
How Well Does FACO Make Money?
Net Profit Margin
For every $100 in sales, First Acceptance Corporation keeps $5.97 as profit after all expenses.
Operating Margin
Core operations generate 7.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.42 in profit for every $100 of shareholder equity.
ROA
First Acceptance Corporation generates $4.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
First Acceptance Corporation generates limited operating cash flow of $46.94M, signaling weaker underlying cash strength.
Free Cash Flow
First Acceptance Corporation produces free cash flow of $46.37M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.26 in free cash annually.
FCF Yield
FACO converts 27.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How FACO Stacks Against Its Sector Peers
| Metric | FACO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.49 | 18.56 | Better (Cheaper) |
| ROE | 16.42% | 828.00% | Weak |
| Net Margin | 5.97% | -175.00% (disorted) | Weak |
| Debt/Equity | 0.23 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 663.54 | Weak Liquidity |
| ROA | 4.17% | -21308.00% (disorted) | Weak |
FACO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews First Acceptance Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
107.87%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
86.20%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
776.04%
Industry Style: Value, Dividend, Cyclical
High Growth