FirstCash (FCFS) AI Stock Analysis

• Market Cap: $8.10B
• Dividend Yield: 0.99%
• Average Volume (3M): 244.97K
• Price to Earnings (P/E): 24.8
• Beta (1Y): >-0.01
• Revenue Growth: 3.86%
• EPS Growth: 28.06%
• Country: US
• Employees: 20,000
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 2.64
• Shares Outstanding: 43,984,695
• 10 Day Avg. Volume: 251,064
• 30 Day Avg. Volume: 244,969
• PEG Ratio: 0.79
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 15.28
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 2.95
• Enterprise Value/Gross Profit: 5.86
• Enterprise Value/Ebitda: 10.79
• 1Y Price Target: $203.50
• Price Target Upside: 10.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $201.00 ▲(9.57% Upside)
• Action: Downgraded Date: 02/12/26
• Date: Action: Downgraded 02/12/26

The score is driven primarily by solid financial performance (growth, improving margins, and healthy cash generation) but is held back by the 2025 leverage increase and slowing free-cash-flow trend. Technicals are supportive of an uptrend but appear overbought, and valuation (P/E ~24.7 with a sub-1% yield) is a modest headwind.

Positive Factors

Revenue Growth & Margin Expansion

FirstCash has delivered multi-year top-line growth (roughly doubling since 2020) with improved gross and operating margins in 2025. Durable revenue scale and recent margin expansion increase sustainable earnings power, support reinvestment and buffer the business through cycles over the next several months.

Strong Cash Generation

Operating cash flow consistently exceeding net income indicates high earnings quality and reliable internal funding. This durable cash generation supports dividends, buybacks and store investments, providing financial flexibility over the medium term even as growth initiatives continue.

Scale Expansion & Pawn Receivables Momentum

Aggressive store expansion (≈350 locations including the 286-store H&T deal) and strong pawn receivables growth across U.S., LatAm and U.K. create durable scale advantages. Larger footprint and rising receivables are structural drivers of recurring fee income and merchandise flow that underpin mid-term revenue resilience.

Negative Factors

Rising Leverage

Leverage increased materially in 2025 (debt-to-equity ~1.24) after meaningful debt buildup. Higher leverage reduces balance-sheet flexibility, elevates interest and refinancing risk, and makes the company more sensitive to slower revenue or higher rates, a persistent constraint over coming quarters.

Free Cash Flow Deceleration

Free cash flow fell about 11% in 2025 and contracted relative to net income, signaling pressure from working capital or reinvestment. This weaker FCF trajectory can constrain capital allocation priorities—debt paydown, buybacks, dividends or store investment—if the trend persists over the next several quarters.

Rising Operating Costs in LatAm (Mexico)

A 12% minimum-wage increase in Mexico and planned store expansion are expected to lift operating expenses 8%-10% (USD). These structurally higher labor costs and incremental store opex can pressure margins in Latin America and overall profitability unless offset by price, efficiency gains, or higher merchandise margins.

FirstCash Business Overview & Revenue Model

Company Description

FirstCash Holdings, Inc, together with its subsidiaries, operates retail pawn stores in the United States, Mexico, and rest of Latin America. Its pawn stores lend money on the collateral of pledged personal property, including jewelry, electronics, tools, appliances, sporting goods, and musical instruments; and retails merchandise acquired through collateral forfeitures on forfeited pawn loans and over-the-counter purchases of merchandise directly from customers. The company is also involved in melting scrap jewelry, as well as sells gold, silver, and diamonds in commodity markets. As of December 31, 2021, it operated 1,081 stores in the United States and the District of Columbia; 1,656 stores in Mexico; 60 stores in Guatemala; 13 stores in El Salvador; and 15 stores in Colombia. The company was incorporated in 1988 and is headquartered in Fort Worth, Texas.

How the Company Makes Money

FirstCash generates revenue primarily through its pawn operations, which include interest and fees from pawn loans, as well as the sale of unredeemed pawned items. The company charges interest on pawn loans, which typically have higher rates compared to traditional loans, thus creating a substantial income stream. Additionally, FirstCash earns revenue from the retail sale of merchandise acquired through pawn transactions, including electronics, jewelry, and other goods. The company also engages in the sale of other consumer financial products, such as check cashing and bill payment services, which contribute to its overall revenue. Key partnerships with financial service providers enhance its offerings, while the growing demand for alternative financing solutions among consumers fuels its earnings.

FirstCash Financial Statement Overview

Summary

Strong revenue growth over multiple years with improved margins in 2025 and generally solid operating/free cash flow. Offsetting this, leverage rose notably in 2025 (debt-to-equity ~1.24) and free cash flow declined year over year, increasing risk if conditions soften.

Income Statement

Revenue has grown steadily over the last several years (roughly doubling since 2020), with 2025 showing mid-single-digit growth on a much larger base. Profitability has also improved: operating margin and net margin expanded versus 2023–2024, and gross margin rose meaningfully in 2025. The main weakness is that net margin remains modest for the business model and has been somewhat volatile across years (e.g., stronger in 2022 than 2023–2024), suggesting earnings can be sensitive to costs and the credit cycle.

Balance Sheet

The company has built a larger equity base over time and is generating solid returns on equity (mid-teens in 2025), indicating good profitability relative to shareholder capital. However, leverage has increased: debt-to-equity moved from below 1.0 in prior years to about 1.24 in 2025, with total debt rising sharply year over year. This higher leverage reduces balance-sheet flexibility and increases exposure if operating conditions soften.

Cash Flow

Cash generation is generally healthy: operating cash flow has been strong and consistently exceeds net income in recent years, supporting earnings quality. Free cash flow remains sizable, but growth turned negative in 2025 (down ~11%), and free cash flow fell relative to net income versus 2024, indicating some pressure from working capital or reinvestment needs. Overall, cash flow supports operations well, but the recent deceleration is a watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.66B	3.39B	3.15B	2.73B	1.70B
Gross Profit	1.89B	1.63B	1.51B	1.26B	919.15M
EBITDA	999.78M	986.25M	906.71M	851.67M	257.62M
Net Income	330.38M	258.81M	219.30M	253.50M	124.91M
Balance Sheet
Total Assets	5.30B	4.48B	4.29B	3.90B	3.84B
Cash, Cash Equivalents and Short-Term Investments	125.20M	175.09M	127.02M	117.33M	120.05M
Total Debt	2.82B	2.05B	1.92B	1.67B	1.59B
Total Liabilities	3.02B	2.42B	2.29B	2.03B	2.03B
Stockholders Equity	2.28B	2.05B	2.00B	1.88B	1.81B
Cash Flow
Free Cash Flow	469.12M	471.71M	355.99M	433.72M	181.28M
Operating Cash Flow	585.94M	539.96M	416.14M	469.31M	223.30M
Investing Cash Flow	-828.04M	-441.59M	-462.33M	-336.44M	-744.64M
Financing Cash Flow	176.41M	-38.19M	51.31M	-139.27M	576.99M

FirstCash Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 183.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 183.45 is above the 20-day moving average (MA) of 176.26, above the 50-day MA of 168.54, and above the 200-day MA of 148.40, indicating a bullish trend. The MACD of 4.71 indicates Negative momentum. The RSI at 70.17 is Negative, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, 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
EZPW	74 Outperform	$1.55B	16.32	12.97%	―	9.70%	26.63%
ENVA	71 Outperform	$3.69B	12.52	24.34%	―	21.10%	76.12%
FCFS	69 Neutral	$8.10B	24.81	15.26%	0.99%	3.86%	28.06%
OMF	68 Neutral	$6.66B	8.66	23.76%	6.07%	9.51%	29.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WRLD	60 Neutral	$667.96M	17.15	14.57%	―	2.31%	-27.81%
PRAA	51 Neutral	$447.51M	―	-31.97%	―	13.89%	-899.50%