Where First Advantage Stands With Analysts

Analysts' ratings for First Advantage FA over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated First Advantage and provided 12-month price targets. The average target is $19.75, accompanied by a high estimate of $22.00 and a low estimate of $15.00. Experiencing a 10.23% decline, the current average is now lower than the previous average price target of $22.00.

Interpreting Analyst Ratings: A Closer Look

The perception of First Advantage by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Manav Patnaik |Barclays |Lowers |Equal-Weight | $15.00|$20.00 | |Jeffrey Silber |BMO Capital |Lowers |Outperform | $22.00|$24.00 | |Manav Patnaik |Barclays |Lowers |Overweight | $20.00|$22.00 | |Ashish Sabadra |RBC Capital |Maintains |Outperform | $22.00|$22.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to First Advantage. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of First Advantage compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of First Advantage's stock. This analysis reveals shifts in analysts' expectations over time.

Capture valuable insights into First Advantage's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on First Advantage analyst ratings.

About First Advantage

First Advantage Corp is a provider of employment background screening and verification solutions. Its reportable segments are First Advantage Americas, First Advantage International, and Sterling. Maximum revenue is generated from the First Advantage Americas segment, which performs various background checks and compliance services across all phases of the workforce lifecycle, from pre-onboarding services to post-onboarding and ongoing monitoring services, covering employees, contractors, contingent workers, tenants, and drivers. The company delivers solutions across multiple industry verticals in the United States, Canada, and Latin America. Geographically, it derives key revenue from the United States.

Breaking Down First Advantage's Financial Performance

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining First Advantage's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 51.62% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: First Advantage's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -32.68%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -9.01%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): First Advantage's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -3.6%, the company may face hurdles in achieving optimal financial returns.

Debt Management: First Advantage's debt-to-equity ratio stands notably higher than the industry average, reaching 1.65. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.