First Acceptance Corporation (FACO)
OTHER OTC:FACO
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First Acceptance
(OTC:FACO)
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Rating:75Outperform
Price Target:
$5.50
▲(29.41% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by solid financial fundamentals with improved leverage and sustained profitability, though tempered by recent revenue softness and weaker recent free-cash-flow momentum. Technicals add support with an established uptrend, and valuation is a notable positive due to the very low P/E.
Positive Factors
Niche Business Model
Serving the non-standard auto market gives durable demand from customers underserved by standard carriers. A multi-channel distribution (retail, agents, online) supports retention and acquisition, producing recurring premium flows and a defensible niche with less direct competition over time.
Negative Factors
Revenue Decline
Declining top-line reduces scale benefits and can pressure underwriting leverage and fixed-cost absorption. For a premium-driven insurer, persistent revenue contraction limits reinvestment capacity, weakens bargaining with reinsurance partners, and raises sensitivity to adverse loss trends.
Read all positive and negative factors
Positive Factors
Negative Factors
Niche Business Model
Serving the non-standard auto market gives durable demand from customers underserved by standard carriers. A multi-channel distribution (retail, agents, online) supports retention and acquisition, producing recurring premium flows and a defensible niche with less direct competition over time.
Read all positive factors
First Acceptance (FACO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$195.52M
Dividend YieldN/A
Average Volume (3M)9.82K
Price to Earnings (P/E)4.9
Beta (1Y)0.22
Revenue Growth-7.36%
EPS Growth65.67%
CountryUS
Employees633
SectorFinancial
Sector Strength70
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)0.96
Shares Outstanding38,150,906
10 Day Avg. Volume7,392
30 Day Avg. Volume9,824
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)0.79
Price to Sales (P/S)0.31
P/FCF Ratio3.41
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue0.35
Enterprise Value/Gross Profit1.04
Enterprise Value/Ebitda3.55
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
First Acceptance Business Overview & Revenue Model
Company Description
First Acceptance Corporation, together with its subsidiaries, operates as a retailer, servicer, and underwriter of non-standard personal automobile insurance and related products in the United States. It issues non-standard automobile insurance po...
How the Company Makes Money
First Acceptance Corporation generates revenue through the sale of non-standard auto insurance policies. Customers pay premiums for insurance coverage, which the company collects as its primary income stream. FACO also earns money through fees ass...
First Acceptance Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
78
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 499.63M | 506.34M | 559.43M | 487.54M | 302.30M | 285.25M |
| Gross Profit | 168.23M | 200.89M | 40.53M | 33.48M | -15.11M | 2.05M |
| EBITDA | 49.38M | 43.11M | 38.61M | 105.40M | -16.32M | 999.00K |
| Net Income | 35.51M | 30.23M | 26.29M | 73.91M | -17.49M | -1.23M |
Balance Sheet | ||||||
| Total Assets | 762.81M | 725.62M | 680.39M | 570.37M | 355.94M | 322.65M |
| Cash, Cash Equivalents and Short-Term Investments | 57.14M | 78.30M | 173.08M | 302.67M | 162.40M | 180.49M |
| Total Debt | 45.33M | 45.53M | 45.40M | 46.02M | 55.30M | 51.97M |
| Total Liabilities | 557.32M | 525.74M | 510.83M | 428.52M | 55.30M | 51.97M |
| Stockholders Equity | 205.48M | 199.88M | 169.56M | 141.85M | 65.52M | 92.90M |
Cash Flow | ||||||
| Free Cash Flow | 33.08M | 46.57M | 51.79M | 83.82M | -8.10M | -10.46M |
| Operating Cash Flow | 33.71M | 47.14M | 52.12M | 85.16M | -3.89M | -6.60M |
| Investing Cash Flow | -51.71M | -48.48M | -75.53M | -24.53M | -7.22M | 34.48M |
| Financing Cash Flow | -749.00K | -6.28M | -446.00K | 83.00K | -642.00K | -15.30M |
First Acceptance Technical Analysis
Positive
4.25
Price Trends
4.82
Positive
4.49
Positive
4.03
Positive
Market Momentum
0.07
Positive
55.89
Neutral
50.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FACO, the sentiment is Positive. The current price of 4.25 is below the 20-day moving average (MA) of 5.06, below the 50-day MA of 4.82, and above the 200-day MA of 4.03, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 55.89 is Neutral, neither overbought nor oversold. The STOCH value of 50.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FACO.
First Acceptance Risk Analysis
First Acceptance disclosed 20 risk factors in its most recent earnings report. First Acceptance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
First Acceptance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $195.52M | 4.88 | 16.42% | ― | -7.36% | 65.67% | |
69 Neutral | $676.67M | 23.71 | 27.46% | ― | 20.77% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $796.49M | 24.21 | 0.83% | 2.94% | 0.41% | -91.81% | |
51 Neutral | $189.57M | -8.14 | 4.48% | 0.63% | -1.78% | ― | |
45 Neutral | $304.59M | -1.84 | 6.98% | ― | 109.30% | 64.74% |
* Financial Sector Average
FACO
First Acceptance
5.13
1.87
57.21%
EIG
Employers Holdings
43.66
-3.20
-6.82%
MBI
MBIA
5.98
1.75
41.37%
JRVR
James River Group
4.10
-1.37
-25.09%
HIPO
Hippo Holdings
25.99
3.78
17.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.