FCFS's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 739.86 -- higher than 94.96% of US-listed equities with positive expected earnings growth.
Firstcash Inc's stock had its IPO on August 17, 1992, making it an older stock than 79.47% of US equities in our set.
In terms of volatility of its share price, FCFS is more volatile than only 9.24% of stocks we're observing.
If you're looking for stocks that are quantitatively similar to Firstcash Inc, a group of peers worth examining would be EBF, SIGI, FELE, WTS, and DECK.
First Cash Financial Services focuses on serving cash and credit constrained consumers through its retail pawn locations. The company was founded in 1988 and is based in Arlington, Texas.
FCFS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for FCFS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Firstcash Inc ranked in the 38th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 30%. The most interesting components of our discounted cash flow analysis for Firstcash Inc ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 7.2 -- which is good for besting 60.63% of its peer stocks (US stocks in the Financial Services sector with positive cash flow).
Firstcash Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 22.49% of tickers in our DCF set.
Firstcash Inc's effective tax rate, as measured by taxes paid relative to net income, is at 19 -- greater than 75.16% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KINS, GBL, PRA, TIPT, and NDAQ can be thought of as valuation peers to FCFS, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think […]
Thesis FirstCash, Inc. (NASDAQ:FCFS) is the nation's largest pawnshop chain. Pawn loans have been in existence for centuries. Here, in the US, they provide a constant source of credit for non-prime borrowers. The long-term secular trend has always been in the low single digits, and never worse than flat, because...
Financial Freedom Institute on Seeking Alpha | June 16, 2020