NasdaqGS:FCFS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet second-rate 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

-6.3%

FCFS

-6.9%

US Consumer Finance

-0.8%

US Market


1 Year Return

-37.8%

FCFS

-23.3%

US Consumer Finance

13.8%

US Market

Return vs Industry: FCFS underperformed the US Consumer Finance industry which returned -23.3% over the past year.

Return vs Market: FCFS underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

FCFSIndustryMarket
7 Day-6.3%-6.9%-0.8%
30 Day-7.2%-4.7%-5.0%
90 Day-15.2%6.3%10.1%
1 Year-36.9%-37.8%-21.6%-23.3%16.4%13.8%
3 Year-7.6%-11.0%-1.3%-6.5%36.9%27.8%
5 Year49.9%41.1%16.8%7.2%85.0%64.2%

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?

16.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FCFS ($56.2) is trading above our estimate of fair value ($48.14)

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 (16.1x) compared to the US Consumer Finance industry average (7.7x).

PE vs Market: FCFS is good value based on its PE Ratio (16.1x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: FCFS is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: FCFS is overvalued based on its PB Ratio (1.9x) compared to the US Consumer Finance industry average (1x).


Next Steps

Future Growth

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

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FCFS's forecast earnings growth (10.3% per year) is above the savings rate (2.2%).

Earnings vs Market: FCFS's earnings (10.3% per year) are forecast to grow slower than the US market (22.9% per year).

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

Revenue vs Market: FCFS's revenue (1.8% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: FCFS's revenue (1.8% 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 (11.4%).


Next Steps

Past Performance

How has FirstCash performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FCFS has high quality earnings.

Growing Profit Margin: FCFS's current net profit margins (8.1%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: FCFS's earnings have grown significantly by 22.8% 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 (-6%) over the past year, making it difficult to compare to the Consumer Finance industry average (-32.3%).


Return on Equity

High ROE: FCFS's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is FirstCash's financial position?


Financial Position Analysis

Short Term Liabilities: FCFS's short term assets ($527.6M) exceed its short term liabilities ($202.1M).

Long Term Liabilities: FCFS's short term assets ($527.6M) do not cover its long term liabilities ($747.7M).


Debt to Equity History and Analysis

Debt Level: FCFS's debt to equity ratio (40.3%) is considered high.

Reducing Debt: FCFS's debt to equity ratio has reduced from 56.6% to 40.3% over the past 5 years.

Debt Coverage: FCFS's debt is well covered by operating cash flow (54.1%).

Interest Coverage: FCFS's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet


Next Steps

Dividend

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

1.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FCFS's dividend (1.92%) is higher than the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: FCFS's dividend (1.92%) is low compared to the top 25% of dividend payers in the US market (4.94%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.3%), 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 (31.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

Rick Wessel (61 yo)

13.83yrs

Tenure

US$7,429,721

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 ($USD7.43M) is above average for companies of similar size in the US market ($USD4.61M).

Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rick Wessel
Vice Chairman & CEO13.83yrsUS$7.43m1.97%
$ 45.8m
Thomas Stuart
President & COO4yrsUS$3.17m0.057%
$ 1.3m
R. Orr
Executive VP17.67yrsUS$3.05m0.35%
$ 8.1m
Anna Alvarado
General Counsel5.67yrsUS$1.31m0.0092%
$ 214.7k
Raul Ramos
Senior Vice President of Latin American Operations7.33yrsUS$1.45m0.014%
$ 328.1k
Gar Jackson
Investor Relations-Global IR Groupno datano datano data
Peter Watson
Senior Vice President of Compliance & Government Relations5.67yrsUS$465.00kno data
Sean Moore
Senior Vice President of Store Development & Facilities7.33yrsUS$755.00kno data

7.3yrs

Average Tenure

54yo

Average Age

Experienced Management: FCFS's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rick Wessel
Vice Chairman & CEO13.83yrsUS$7.43m1.97%
$ 45.8m
Daniel Berce
Independent Director4yrsUS$230.49k0.041%
$ 959.5k
Daniel Feehan
Chairman of the Board4yrsUS$250.00k0.24%
$ 5.7m
Mikel Faulkner
Lead Independent Director2.92yrsUS$220.49k0.015%
$ 352.8k
James Graves
Independent Director4yrsUS$210.49k0.051%
$ 1.2m
Randel Owen
Independent Director10.92yrsUS$225.49k0.011%
$ 257.1k

4.0yrs

Average Tenure

67.5yo

Average Age

Experienced Board: FCFS's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

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$2.329b
  • Shares outstanding: 41.44m
  • Website: https://www.firstcash.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
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 jew ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 05:38
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.