NasdaqGS:FCFS

Stock Analysis Report

Executive Summary

FirstCash, Inc., together with its subsidiaries, operates retail pawn stores in the United States and Latin America.

Rewards

Earnings are forecast to grow 8.4% per year

Risk Analysis

No risks detected for FCFS from our risk checks.


Snowflake Analysis

Questionable track record unattractive dividend payer.


Similar Companies

Share Price & News

How has FirstCash's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FCFS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

FCFS

-0.02%

US Consumer Finance

-0.3%

US Market


1 Year Return

1.0%

FCFS

16.0%

US Consumer Finance

18.6%

US Market

Return vs Industry: FCFS underperformed the US Consumer Finance industry which returned 16% over the past year.

Return vs Market: FCFS underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

FCFSIndustryMarket
7 Day0.8%-0.02%-0.3%
30 Day0.6%0.4%2.2%
90 Day-17.3%2.0%5.6%
1 Year2.1%1.0%18.0%16.0%21.1%18.6%
3 Year77.5%71.1%36.8%30.2%45.6%36.2%
5 Year55.9%48.4%33.5%24.1%71.1%52.2%

Price Volatility Vs. Market

How volatile is FirstCash's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FirstCash undervalued compared to its fair value and its price relative to the market?

22.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FCFS ($82.02) is trading above our estimate of fair value ($57.52)

Significantly Below Fair Value: FCFS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FCFS is poor value based on its PE Ratio (22.4x) compared to the Consumer Finance industry average (8.6x).

PE vs Market: FCFS is poor value based on its PE Ratio (22.4x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: FCFS is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: FCFS is overvalued based on its PB Ratio (2.6x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is FirstCash forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCFS's forecast earnings growth (8.4% per year) is above the savings rate (1.7%).

Earnings vs Market: FCFS's earnings (8.4% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: FCFS's earnings are forecast to grow, but not significantly.

Revenue vs Market: FCFS's revenue (4.2% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: FCFS's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FCFS's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

How has FirstCash performed over the past 5 years?

22.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCFS has high quality earnings.

Growing Profit Margin: FCFS's current net profit margins (8.6%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: FCFS's earnings have grown significantly by 22.3% per year over the past 5 years.

Accelerating Growth: FCFS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FCFS had negative earnings growth (-8.3%) over the past year, making it difficult to compare to the Consumer Finance industry average (17.1%).


Return on Equity

High ROE: FCFS's Return on Equity (11.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FirstCash's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FCFS has a high level of physical assets or inventory.

Debt Coverage by Assets: FCFS's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: FCFS's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if FCFS has a sufficient allowance for bad loans.

Low Risk Liabilities: FCFS reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if FCFS has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FCFS has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if FCFS has an appropriate level of bad loans.


Next Steps

Dividend

What is FirstCash's current dividend yield, its reliability and sustainability?

1.32%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: FCFS's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: FCFS's dividend (1.32%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FCFS has been paying a dividend for less than 10 years.

Growing Dividend: FCFS's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.3%), FCFS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FCFS's dividends in 3 years are forecast to be well covered by earnings (26.1% payout ratio).


Next Steps

Management

What is the CEO of FirstCash's salary, the management and board of directors tenure and is there insider trading?

6.6yrs

Average management tenure


CEO

Rick Wessel (60yo)

13.1yrs

Tenure

US$7,804,440

Compensation

Mr. Rick L. Wessel has been Vice Chairman of FirstCash, Inc. (formerly First Cash Financial Services Inc) since September 1, 2016 and as its Chief Executive Officer since November 7, 2006. Mr. Wessel serve ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD7.80M) is above average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Rick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

6.6yrs

Average Tenure

53yo

Average Age

Experienced Management: FCFS's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

68yo

Average Age

Experienced Board: FCFS's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$357,29003 Sep 19
James Graves
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,597
Max PriceUS$99.33
SellUS$1,335,80426 Feb 19
Daniel Feehan
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares15,000
Max PriceUS$89.66

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Rick Wessel (60yo)

    Vice Chairman & CEO

    • Tenure: 13.1yrs
    • Compensation: US$7.80m
  • Doug Orr (58yo)

    Executive VP

    • Tenure: 16.9yrs
    • Compensation: US$3.05m
  • Peter Watson (70yo)

    Senior Vice President of Compliance & Government Relations

    • Tenure: 4.9yrs
    • Compensation: US$465.00k
  • Raul Ramos (53yo)

    Senior Vice President of Latin American Operations

    • Tenure: 6.6yrs
    • Compensation: US$1.29m
  • Sean Moore (42yo)

    Senior Vice President of Store Development & Facilities

    • Tenure: 6.6yrs
    • Compensation: US$755.00k
  • Anna Alvarado (40yo)

    General Counsel

    • Tenure: 4.9yrs
    • Compensation: US$1.12m
  • Thomas Stuart (49yo)

    President & COO

    • Tenure: 3.3yrs
    • Compensation: US$3.20m
  • Gar Jackson

    Investor Relations-Global IR Group

    • Tenure: 0yrs

Board Members

  • Dan Berce (65yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$200.56k
  • Dan Feehan (68yo)

    Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: US$250.00k
  • Mikel Faulkner (70yo)

    Lead Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$190.56k
  • Rick Wessel (60yo)

    Vice Chairman & CEO

    • Tenure: 13.1yrs
    • Compensation: US$7.80m
  • Jim Graves (70yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$180.56k
  • Randy Owen (60yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$195.56k
  • O. Montano (73yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$180.56k

Company Information

FirstCash, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FirstCash, Inc.
  • Ticker: FCFS
  • Exchange: NasdaqGS
  • Founded: 1988
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$3.437b
  • Shares outstanding: 42.68m
  • Website: https://ir.firstcash.com

Number of Employees


Location

  • FirstCash, Inc.
  • 1600 West 7th Street
  • Fort Worth
  • Texas
  • 76102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FCFS *BMV (Bolsa Mexicana de Valores)COMMXMXNNo data
A2ARD4DB (Deutsche Boerse AG)COMDEEURNo data
FCFSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1991
FCFS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1991
FF6DB (Deutsche Boerse AG)YesCommon StockDEEURJun 1991

Biography

FirstCash, Inc., together with its subsidiaries, operates retail pawn stores in the United States and Latin America. Its pawn stores lend money on the collateral of pledged personal property, including con ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 23:35
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.