FirstCash (FCFS) AI Stock Analysis

• Market Cap: $5.16B
• Dividend Yield: 1.29%
• Average Volume (3M): 257.07K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.15
• Revenue Growth: 7.51%
• EPS Growth: 19.24%
• Country: US
• Employees: 20,000
• Sector: Financial
• Sector Strength: 93
• Industry: Credit Finance
• EPS (TTM): 5.73
• Shares Outstanding: 44,760,746
• 10 Day Avg. Volume: 277,389
• 30 Day Avg. Volume: 257,071
• PEG Ratio: 1.05
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.52
• Price to Cash Flow (P/CF): 6.50
• P/FCF Ratio: 8.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $140.00
• Price Target Upside: 21.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

FirstCash Holdings presents a solid investment opportunity with strong financial performance, positive technical indicators, and strategic growth initiatives. While valuation metrics suggest the stock is fairly priced, ongoing regulatory challenges require cautious optimism. Overall, the company is well-positioned within the credit finance industry.

Positive Factors

Economic Conditions

A weakening Mexico economy should be a positive for both FirstCash pawn loan demand as well as its retail sales volume.

Loan Growth

Strong pawn loan growth is expected to continue into the future.

Negative Factors

Revenue Shortfall

Revenue came in below expectation in U.S. pawn due to lower retail merchandise sales and scrap revenue.

FirstCash Business Overview & Revenue Model

Company Description

FirstCash Holdings, Inc. is a leading operator of pawn stores in the United States and Latin America. The company specializes in providing non-recourse pawn loans to consumers who use personal property, such as jewelry, electronics, and tools, as collateral. FirstCash operates through a network of retail pawn locations, offering a range of retail merchandise from forfeited collateral and pre-owned items.

How the Company Makes Money

FirstCash makes money primarily through interest and fees on pawn loans, which are short-term, collateral-based loans that do not require credit checks. The company also generates revenue from the retail sale of merchandise acquired through forfeited pawn collateral and direct purchases from customers. Additionally, FirstCash benefits from a diverse geographic footprint, which includes significant operations across various U.S. states and several Latin American countries. The company's earnings are influenced by factors such as consumer demand for pawn loans, the value of pledged collateral, and retail sales performance. FirstCash also engages in strategic acquisitions to expand its market presence and enhance its revenue streams.

FirstCash Financial Statement Overview

Summary

FirstCash exhibits a robust financial performance with strong revenue growth and solid profitability margins. The company maintains a healthy balance sheet with moderate leverage and a solid equity base. Cash flow generation remains strong, though there is a noted slowdown in free cash flow growth.

Income Statement

FirstCash demonstrates strong revenue growth, with a TTM revenue of $3.39 billion, up from $3.15 billion in the previous year. Gross profit margin remains robust at 46.5%, reflecting efficient cost management. However, a dip in EBIT margin from 21.4% to 17.3% suggests increased operational expenses. The net profit margin has improved to 7.6%, indicating better bottom-line performance.

Balance Sheet

FirstCash maintains a stable financial position with a moderate debt-to-equity ratio of 0.86, showing manageable leverage. The equity ratio stands at 45.9%, indicating a solid capital structure. Return on equity is slightly lower at 12.6%, suggesting room for improvement in generating shareholder returns.

Cash Flow

The company's free cash flow remains strong, with a TTM figure of $276 million, albeit lower than the previous year. Operating cash flow to net income ratio of 1.32 indicates efficient cash generation. However, a decline in free cash flow growth rate suggests slower cash flow expansion.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.39B	3.15B	2.73B	1.70B	1.63B
	Gross Profit
1.63B	1.51B	1.26B	919.15M	911.14M
	EBIT
728.55M	675.09M	397.50M	215.72M	197.49M
	EBITDA
552.94M	906.71M	851.67M	257.62M	215.15M
	Net Income Common Stockholders
258.81M	219.30M	253.50M	124.91M	106.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
175.09M	127.02M	117.33M	120.05M	65.85M
	Total Assets
4.48B	4.29B	3.90B	3.83B	2.37B
	Total Debt
1.76B	1.92B	1.67B	1.59B	899.42M
	Net Debt
1.58B	1.80B	1.55B	1.47B	833.58M
	Total Liabilities
2.42B	2.29B	2.03B	2.03B	1.09B
	Stockholders Equity
2.05B	2.00B	1.88B	1.81B	1.28B
Cash Flow		Free Cash Flow
471.71M	355.99M	433.72M	181.28M	184.72M
	Operating Cash Flow
539.96M	416.14M	469.31M	223.30M	222.26M
	Investing Cash Flow
-441.59M	-462.33M	-336.44M	-744.64M	-20.35M
	Financing Cash Flow
-38.19M	51.31M	-139.27M	576.99M	-186.50M

FirstCash Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 115.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCFS, the sentiment is Positive. The current price of 115.42 is above the 20-day moving average (MA) of 114.23, above the 50-day MA of 110.69, and above the 200-day MA of 110.43, indicating a bullish trend. The MACD of 0.66 indicates Positive momentum. The RSI at 58.95 is Neutral, neither overbought nor oversold. The STOCH value of 80.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCFS.

FirstCash Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WRLD	81 Outperform	$718.33M	8.92	19.28%	―	-2.78%	24.39%
FCFS	77 Outperform	$5.16B	20.13	12.78%	1.29%	7.51%	19.24%
EZPW	76 Outperform	$732.88M	11.95	10.71%	―	8.95%	71.41%
ENVA	74 Outperform	$2.41B	12.30	17.19%	―	25.51%	36.96%
Sector *	64 Neutral	$14.34B	10.61	9.28%	4.07%	18.04%	-9.54%

FirstCash Corporate Events

FirstCash Reports Strong Financial Results and Growth

In its recent investor presentation, FirstCash Holdings, Inc. reported strong financial results for the trailing twelve months ending December 31, 2024, with revenue reaching $3.4 billion and a GAAP net income of $259 million. The company continues to expand its pawn operations, leveraging its position as a large reseller of recycled consumer products in the Americas. Despite facing regulatory challenges and potential economic impacts, FirstCash remains focused on executing its growth strategies, which include expanding its merchant partner base and enhancing its retail point-of-sale payment solutions business.