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FirstCash Inc (FCFS)
NASDAQ:FCFS

FirstCash (FCFS) AI Stock Analysis

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FirstCash

(NASDAQ:FCFS)

Rating:78Outperform
Price Target:
$142.00
▲(8.34%Upside)
FirstCash's strong financial performance and strategic acquisition drive the stock's attractiveness. Despite moderate technical and valuation metrics, the company's robust growth strategy and financial health position it well for future success. The acquisition adds a significant positive outlook for earnings accretion and market expansion.
Positive Factors
Earnings
FCFS reported higher earnings per share than analysts and consensus estimates, indicating strong financial performance.
Growth Potential
Management expressed confidence in opportunities to acquire additional stores, highlighting future growth potential.
Negative Factors
Guidance
The AFF guidance is weak, mostly driven by the bankruptcy of some furniture merchant partners.
Revenue
Revenue came in below expectation in U.S. pawn due to lower retail merchandise sales and scrap revenue.

FirstCash (FCFS) vs. SPDR S&P 500 ETF (SPY)

FirstCash Business Overview & Revenue Model

Company DescriptionFirstCash Holdings, Inc. (FCFS) is a leading operator of pawn stores in the United States and Latin America. The company provides financial services through its network of retail locations, offering pawn loans to consumers who pledge personal items as collateral. Additionally, FirstCash engages in retail sales of pre-owned merchandise acquired through loan forfeitures, focusing on consumer electronics, jewelry, tools, and other goods.
How the Company Makes MoneyFirstCash generates revenue primarily through two key streams: pawn loan fees and retail sales. Pawn loan fees are earned by charging interest and fees on short-term loans secured by personal items. These loans are typically small and are extended to customers who may not have access to traditional credit. The interest and fees from these transactions constitute a significant portion of the company's income. The second revenue stream comes from retail sales of items forfeited by borrowers and directly purchased from customers. These pre-owned goods are sold at the company's retail locations, providing a substantial source of revenue. FirstCash's operations are supported by its extensive network of stores, allowing it to maintain a strong presence in diverse markets and capitalize on the demand for alternative financial services.

FirstCash Financial Statement Overview

Summary
FirstCash exhibits strong financial health with impressive revenue growth, solid profitability, and efficient cash flow management. While leverage remains within manageable limits, operational cost increases and cash flow fluctuations require attention to sustain long-term growth.
Income Statement
82
Very Positive
FirstCash has demonstrated strong revenue growth with a Revenue Growth Rate of 24.5% from 2022 to 2023 and a steady Gross Profit Margin around 48%. The Net Profit Margin improved to 8.3% TTM, showcasing enhanced profitability. However, a decrease in EBIT and EBITDA margins suggests rising operational costs, which could impact future profitability.
Balance Sheet
78
Positive
The company's financial stability is reflected in a solid Debt-to-Equity Ratio of approximately 0.86, indicating a balanced approach to leverage. Return on Equity stands strong at 13.7% TTM, showing efficient use of equity capital. The Equity Ratio of 46.5% TTM suggests a well-capitalized balance sheet, though the high debt levels warrant cautious monitoring.
Cash Flow
85
Very Positive
Cash flow performance is robust with a significant Free Cash Flow Growth Rate of 38.3% from 2022 to 2023. The Operating Cash Flow to Net Income Ratio is 1.94 TTM, indicating efficient cash generation from operations. However, fluctuations in investing and financing cash flows may impact liquidity management.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.39B3.39B3.15B2.73B1.70B1.63B
Gross Profit
1.63B1.63B1.51B1.26B919.15M911.14M
EBIT
547.25M450.41M675.09M397.50M215.72M197.49M
EBITDA
879.03M986.25M906.71M851.67M257.62M215.15M
Net Income Common Stockholders
281.04M258.81M219.30M253.50M124.91M106.58M
Balance SheetCash, Cash Equivalents and Short-Term Investments
135.07M175.09M127.02M117.33M120.05M65.85M
Total Assets
4.25B4.48B4.29B3.90B3.83B2.37B
Total Debt
1.85B2.05B1.92B1.67B1.59B899.42M
Net Debt
1.72B1.87B1.80B1.55B1.47B833.58M
Total Liabilities
2.20B2.42B2.29B2.03B2.03B1.09B
Stockholders Equity
2.05B2.05B2.00B1.88B1.81B1.28B
Cash FlowFree Cash Flow
479.57M471.71M355.99M433.72M181.28M184.72M
Operating Cash Flow
544.07M539.96M416.14M469.31M223.30M222.26M
Investing Cash Flow
-462.10M-441.59M-462.33M-336.44M-744.64M-20.35M
Financing Cash Flow
-58.58M-38.19M51.31M-139.27M576.99M-186.50M

FirstCash Technical Analysis

Technical Analysis Sentiment
Positive
Last Price131.07
Price Trends
50DMA
126.32
Positive
100DMA
120.07
Positive
200DMA
114.68
Positive
Market Momentum
MACD
-0.04
Positive
RSI
60.20
Neutral
STOCH
56.05
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 131.07 is above the 20-day moving average (MA) of 127.45, above the 50-day MA of 126.32, and above the 200-day MA of 114.68, indicating a bullish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 60.20 is Neutral, neither overbought nor oversold. The STOCH value of 56.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCFS.

FirstCash Risk Analysis

FirstCash disclosed 36 risk factors in its most recent earnings report. FirstCash reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

FirstCash Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ACACT
84
Outperform
$5.20B7.7914.09%2.21%4.33%10.21%
78
Outperform
$5.58B20.1413.70%1.21%5.06%21.62%
71
Outperform
$5.31B23.847.48%1.70%13.37%-35.09%
69
Neutral
$5.63B59.1233.41%12.61%24.78%
OMOMF
68
Neutral
$6.35B11.2917.46%7.80%9.07%
64
Neutral
$12.86B9.797.78%16985.65%12.28%-7.82%
46
Neutral
$4.50B-5.28%12.11%43.67%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FCFS
FirstCash
131.07
21.44
19.56%
CRVL
CorVel
108.20
30.66
39.54%
SIGI
Selective Insurance Group
86.16
-6.60
-7.12%
OMF
OneMain Holdings
52.87
7.64
16.89%
BWIN
Baldwin Insurance Group
38.93
4.51
13.10%
ACT
Enact Holdings
34.25
5.04
17.25%

FirstCash Corporate Events

M&A TransactionsBusiness Operations and Strategy
FirstCash Announces Acquisition of H&T Group plc
Positive
May 14, 2025

On May 14, 2025, FirstCash Holdings, Inc. announced its agreement to acquire H&T Group plc, the leading pawn operator in the UK, through its subsidiary Chess Bidco Limited. The acquisition, valued at approximately £297 million, will be executed via a court-sanctioned scheme of arrangement and is expected to close in the second half of 2025, pending regulatory and shareholder approvals. This strategic move marks FirstCash’s entry into the UK market, enhancing its geographic diversification and operational scale, and is anticipated to be accretive to the company’s EBITDA and EPS. The acquisition is supported by irrevocable undertakings from H&T’s board members and aims to leverage H&T’s established brand and experienced management team to drive long-term growth and value for stakeholders.

The most recent analyst rating on (FCFS) stock is a Buy with a $134.00 price target. To see the full list of analyst forecasts on FirstCash stock, see the FCFS Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
FirstCash Highlights Strong Financial Performance in Presentation
Positive
Apr 29, 2025

FirstCash Holdings, Inc. has released its latest investor presentation, highlighting its strong financial performance with a revenue of $3.4 billion and a GAAP net income of $281 million for the trailing twelve months as of March 31, 2025. The company continues to focus on growth through opening new retail pawn locations and acquiring existing stores, despite facing challenges such as regulatory risks and competition in the retail payment solutions market.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.