FirstCash Holdings, Inc
FirstCash Holdings, Inc Fundamental Analysis
FirstCash Holdings, Inc (FCFS) shows moderate financial fundamentals with a PE ratio of 24.90, profit margin of 9.02%, and ROE of 15.23%. The company generates $3.6B in annual revenue with moderate year-over-year growth of 7.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.1/100 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 FCFS's fundamental strength across five key dimensions:
Efficiency Score
WeakFCFS struggles to generate sufficient returns from assets.
Valuation Score
ModerateFCFS shows balanced valuation metrics.
Growth Score
ExcellentFCFS delivers strong and consistent growth momentum.
Financial Health Score
ModerateFCFS shows balanced financial health with some risks.
Profitability Score
ModerateFCFS maintains healthy but balanced margins.
Key Financial Metrics
Is FCFS Expensive or Cheap?
P/E Ratio
FCFS trades at 24.90 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, FCFS's PEG of 3.62 indicates potential overvaluation.
Price to Book
The market values FirstCash Holdings, Inc at 3.61 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.38 times EBITDA. This is generally considered low.
How Well Does FCFS Make Money?
Net Profit Margin
For every $100 in sales, FirstCash Holdings, Inc keeps $9.02 as profit after all expenses.
Operating Margin
Core operations generate 15.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.23 in profit for every $100 of shareholder equity.
ROA
FirstCash Holdings, Inc generates $6.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
FirstCash Holdings, Inc produces operating cash flow of $575.12M, showing steady but balanced cash generation.
Free Cash Flow
FirstCash Holdings, Inc generates strong free cash flow of $503.86M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.42 in free cash annually.
FCF Yield
FCFS converts 6.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How FCFS Stacks Against Its Sector Peers
| Metric | FCFS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.90 | 18.86 | Worse (Expensive) |
| ROE | 15.23% | 847.00% | Weak |
| Net Margin | 9.02% | 4202.00% | Weak |
| Debt/Equity | 1.24 | 0.91 | Weak (High Leverage) |
| Current Ratio | 4.55 | 667.17 | Strong Liquidity |
| ROA | 6.23% | -21543.00% (disorted) | Weak |
FCFS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews FirstCash Holdings, Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
73.88%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
50.42%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
123.06%
Industry Style: Value, Dividend, Cyclical
High Growth