First Advantage Corporation Common Stock (FA)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

First Advantage provides employment background screening and identity verification, a compliance-oriented service, but its low returns and leverage suggest no wide moat. The recent numbers show a real turn: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $448.8M and net income $16.9M, or diluted EPS $0.10, versus fiscal Q2 2025 revenue $390.6M and net income $308,000. That is about 14.9% revenue growth and a large profit swing, but the prior base was tiny. For fiscal 2025, the company reported $1.6B revenue and a net loss of $34.8M, or -$0.20 diluted EPS; fiscal 2024 was worse at -$110.3M. So the Lynch category is TURNAROUND, and the latest quarters support that. Financial health is mixed. FairStock's calculations as of the 2026-10-13 close show free cash flow of $195.4M trailing twelve months and a 5.9% FCF yield, plus a Piotroski F-Score of 8/9, which is encouraging. But debt-to-equity is 1.58, Altman Z-Score is 1.01, ROE is 1.94%, and ROCE is 2.82%; that is not a fortress balance sheet or high-return business. Valuation looks full. At $19.25, FairStock's P/E is 128.33, P/B 2.55, and Graham Number $5.04, leaving a -281.94% margin of safety. The PEG of 0.13 is flattering only because profit growth is rebounding from near zero. I would want durable margin improvement and debt reduction before calling this a bargain.

In plain English: First Advantage helps employers run background checks, identity checks and work-history verification. The business has shown a sharp profit rebound in recent quarters after losses in fiscal 2024 and fiscal 2025, but it still carries a lot of debt. At $19.25, the price looks expensive compared with current earnings and book value, even though cash flow is positive.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer