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:
We started the process of determining a valid price forecast for Firstcash Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Firstcash Inc ranked in the 51th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 23%. In terms of the factors that were most noteworthy in this DCF analysis for FCFS, they are:
The compound growth rate in the free cash flow of Firstcash Inc over the past 5.46 years is 0.16%; that's better than 63.04% of cash flow producing equities in the Financial Services sector, where it is classified.
Firstcash Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 19.18% 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 76.98% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FCFS, try CNA, PROS, ASFI, FSAM, and BSIG.
FirstCash ([[FCFS]] -2.9%) has priced upsized private offering of $500M (from $400M) of 4.625% senior unsecured notes due 2028.The notes will pay interest semi-annually on March 1 and September 1 of each year beginning on March 1, 2021.Closing date is August 26, 2020. Proceeds will be used to redeem $300M outstanding 5.375%...
While hard times have created opportunities for FirstCash (FCFS) in the past, this pandemic has so far been one of those “it’s different this time” events for this leading pawn shop operator. While store closures have been manageable in most operating areas, government support/stimulus and foreign remittances have led to...
Stephen Simpson, CFA on Seeking Alpha | July 24, 2020
First Cash Financial Services (FCFS) delivered earnings and revenue surprises of 24.00% and -4.80%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?
Shares of FirstCash (NASDAQ:FCFS) were unchanged after the company reported Q2 results.Quarterly Results Earnings per share fell 24.39% year over year to $0.62, which beat the estimate of $0.58.Revenue of $412,746,000 decreased by 7.46% year over year, which missed the estimate of $437,160,000.Guidance FirstCash hasn't issued any earnings guidance for the time being.View more earnings on FCFSRevenue guidance hasn't been issued by the company for now.Price Action Company's 52-week high was at $106.8052-week low: $60.04Price action over last quarter: down 2.34%Company Overview FirstCash Inc Financial Services operates pawn stores in the United States and Latin America. Its primary business involves making small loans secured by personal property. These pawn loans give the borr...
FORT WORTH, Texas, July 22, 2020 (GLOBE NEWSWIRE) -- FirstCash, Inc. (the “Company”) (Nasdaq: FCFS), the leading international operator of over 2,700 retail pawn stores in the U.S. and Latin America, today announced operating results for the three and six month periods ended June 30, 2020, and an update on the impact of COVID-19. The Company also announced its exit from all unsecured consumer lending operations effective June 30, 2020. In addition, the Board of Directors declared a $0.27 per share quarterly cash dividend to be paid in August 2020. Mr. Rick Wessel, chief executive officer, stated, “In these challenging times, we have been relentless in our efforts to safely serve customers while also protecting our employees. Today, over 99% of the Company’s 2,745 stores in the United S...