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First Advantage Corporation (FA)

NEUTRAL
IndustrialsSpecialty Business ServicesUnited States

Fundamental

56

Price

$20.53

Market Cap

$3.64B

Part 1 · What the company is worth

Overview

First Advantage Corporation provides employment background screening, digital identity, and verification solutions internationally. It offers pre-onboarding products and solutions, such as 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 other screening products. The company also provides post-onboarding solutions, including criminal records monitoring, I-9 verification, healthcare sanctions, motor vehicle records, social media screening, and global sanctions and licenses; and adjacent products comprising fleet/vehicle compliance, hiring tax credits and incentives, and investigative research. Its products and solutions are used by executive management, human resources, talent acquisition, risk, compliance, vendor management, safety, global enterprises, mid-sized, and small companies. The company was formerly known as Fastball Intermediate, Inc. and changed its name to First Advantage Corporation in March 2021. First Advantage Corporation was founded in 2002 and is based in Atlanta, Georgia.

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Direct competitors

Who this company fights with for the same customers

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Balance Sheet & Liquidity

Revenue

$1.66B

Trailing 12 months (through 6/30/2026)

Net Income

$25M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$188M

Total Equity

$1.31B

Total Liabilities

$2.52B

Current Ratio

2.53

Interest Coverage

1.28

Debt/EBITDA

8.36

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$18.32

Current Price

$20.53

Margin of Safety

-12.1%

Fair Value Range

$11.91 - $24.73

Estimation Methods

Analyst price target:$26.25
Discounted cash flow (DCF):$20.40
Earnings multiple (P/E):$2.27
Graham growth formula:$2.44
Earnings power value (EPV):$7.55
Justified P/B:Not enough data to compute it
Dividend discount (Gordon):$0.01
P/FFO, funds from operations:Not enough data to compute it
Mid-cycle earnings:$19.14
Revenue multiple:Not enough data to compute it
Analyst Consensus:Buy (12B / 6H / 0S)
Last Earnings Surprise:+19.21%

Valuation Metrics

P/E Ratio

137.93

ROE

-2.7%

P/B Ratio

2.75

P/FCF

14.27

Gross Margin

-

ROIC

4.0%

Profitability Radar

Value Creation (Economic Moat)

ROIC

4.0%

WACC

9.2%

ROIC − WACC

-5.2 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (14)

  • P/FCF 14.27
  • P/B Ratio 2.75
  • Debt/Equity ratio
  • Operating Margin 10.7%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Return on Tangible Assets
  • Revenue Growth 5Y 25.3%
  • Analyst Consensus 67% Buy
  • Earnings Surprise avg 13.9%
  • Earnings Quality (OCF/NI) 10.39
  • Net Margin Trend 1.5% vs -12.0%
  • Piotroski F-Score 6/9

Failed (10)

  • EPS shows upward trend
  • Price CAGR 1.88%
  • ROIC 4.0%
  • Interest Coverage
  • Debt/EBITDA
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • ROE 1.9%
  • Share Dilution 16.8%

Unavailable (3)

  • Gross Margin NaN%
  • Dividend Payout NaN%
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

10.39

High quality: earnings backed by cash

Share Dilution

16.8%

Issuing new shares, diluting ownership

Governance

Executive Team

NameTitleAge
Mr. Scott D StaplesCEO & Director60
Ms. Joelle M. SmithPresident49
Mr. Steven MarksExecutive VP & CFO38
Mr. Douglas NairneGlobal Chief Operating Officer58
Mr. Bret T. Jardine ESQ.Chief Legal Officer & Secretary58
Jon BlackSVP of IT Operations-
Mr. Brad DoctorChief Information Security Officer-
Ms. Joy HenryChief Revenue Officer of Americas-

Audit Risk

2

Board Risk

10

Compensation Risk

6

Shareholder Rights Risk

7

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for FA, sourced from Markets Gazette.

No recent news for FA.