NasdaqGS:FCFS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Mediocre balance sheet with questionable track record.


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


Market Performance


7 Day Return

-1.2%

NasdaqGS:FCFS

2.1%

US Consumer Finance

1.2%

US Market


1 Year Return

19.5%

NasdaqGS:FCFS

3.8%

US Consumer Finance

1.7%

US Market

FCFS outperformed the Consumer Finance industry which returned 3.8% over the past year.

FCFS outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

FCFSIndustryMarket
7 Day-1.2%2.1%1.2%
30 Day-0.7%2.4%4.9%
90 Day-0.9%1.3%3.7%
1 Year20.9%19.5%5.7%3.8%3.9%1.7%
3 Year118.6%110.5%66.0%57.9%47.2%37.7%
5 Year82.4%74.2%41.1%30.7%60.0%42.4%

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 based on future cash flows and its price relative to the stock market?

27.2x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

FirstCash's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

FirstCash's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

FirstCash is overvalued based on earnings compared to the US Consumer Finance industry average.

FirstCash is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

FirstCash is poor value based on expected growth next year.


Price Based on Value of Assets

FirstCash is overvalued based on assets compared to the US Consumer Finance industry average.


Next Steps

Future Growth

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

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

FirstCash's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).

FirstCash's earnings are expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).

FirstCash's revenue growth is positive but not above the United States of America market average.

FirstCash's earnings growth is positive but not above the United States of America market average.

FirstCash's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

FirstCash is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has FirstCash performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

FirstCash has delivered over 20% year on year earnings growth in the past 5 years.

FirstCash's 1-year earnings growth is negative, it can't be compared to the 5-year average.

FirstCash's 1-year earnings growth is negative, it can't be compared to the US Consumer Finance industry average.


Return on Equity

FirstCash has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

FirstCash used its assets more efficiently than the US Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

FirstCash's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is FirstCash's financial position?


Financial Position Analysis

FirstCash is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

FirstCash's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

FirstCash's level of debt (47.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (45.3% vs 47.9% today).

Debt is well covered by operating cash flow (36.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

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

1.09%

Expected Dividend Yield


Dividend Yield and Payments Analysis

FirstCash's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

FirstCash's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, FirstCash has been paying a dividend for less than 10 years.

Dividend payments have increased, but FirstCash only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Rick Wessel (60yo)

12.8yrs

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

Rick's remuneration is higher than average for companies of similar size in United States of America.

Rick's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

6.3yrs

Average Tenure

55.5yo

Average Age

The average tenure for the FirstCash management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.0yrs

Average Tenure

68yo

Average Age

The tenure for the FirstCash board of directors is about average.


Insider Trading

FirstCash individual insiders have only sold shares 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
SellUS$623,77003 Dec 18
James Graves
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,000
Max PriceUS$89.11

Ownership Breakdown


Management Team

  • Dan Berce (65yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$200.56k
  • Rick Wessel (60yo)

    Vice Chairman & CEO

    • Tenure: 12.8yrs
    • Compensation: US$7.80m
  • Doug Orr (58yo)

    Executive VP

    • Tenure: 16.7yrs
    • Compensation: US$3.05m
  • Peter Watson (70yo)

    Senior Vice President of Compliance & Government Relations

    • Tenure: 4.7yrs
    • Compensation: US$465.00k
  • Raul Ramos (53yo)

    Senior Vice President of Latin American Operations

    • Tenure: 6.3yrs
    • Compensation: US$1.29m
  • Sean Moore (42yo)

    Senior Vice President of Store Development & Facilities

    • Tenure: 6.3yrs
    • Compensation: US$755.00k
  • Anna Alvarado (40yo)

    General Counsel

    • Tenure: 4.7yrs
    • Compensation: US$1.12m
  • Thomas Stuart (49yo)

    President & COO

    • Tenure: 3yrs
    • Compensation: US$3.20m
  • Gar Jackson

    Investor Relations-Global IR Group

    • Tenure: 0yrs

Board Members

  • Dan Berce (65yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$200.56k
  • Dan Feehan (68yo)

    Chairman of the Board

    • Tenure: 3yrs
    • Compensation: US$250.00k
  • Mikel Faulkner (70yo)

    Lead Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$190.56k
  • Rick Wessel (60yo)

    Vice Chairman & CEO

    • Tenure: 12.8yrs
    • Compensation: US$7.80m
  • Jim Graves (70yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$180.56k
  • Randy Owen (60yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$195.56k
  • O. Montano (73yo)

    Independent Director

    • Tenure: 3.3yrs
    • 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$4.212b
  • Shares outstanding: 42.96m
  • 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 Analysis2019/09/14 23:38
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
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.