FirstCash Holdings Inc. Common Stock (FCFS)

FairStock Score: 56/100 — STEADY

Key Financials

Strengths

• Generates $232 million in annual free cash flow (2.5% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 15.3% above cost of capital
• Revenue growth of 19.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($93) with negative 126% margin of safety—limited downside protection

AI Analysis

FirstCash Holdings Inc. Common Stock is a small-cap financial services company valued at $9.3 billion. The business generates $3.7 billion in annual revenue with a 2.9% net margin and $232 million in free cash flow. From a quality standpoint, FirstCash shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 2.9 in the grey zone. On valuation, the stock is trading at a premium 28.6x earnings, with trades far above its Graham Number ($93) with no margin of safety. Growth dynamics show revenue growing at 19.8% and profit growth of 24.7%. Our composite FairStock Score of 56/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

FirstCash's 20% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. With $232 million in annual free cash flow (2.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer