Latest Ratios: P/E Ratio -90.5x · EV/EBITDA 12.7x · ROE -2.7%. (2003–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.1B | $2.5B | $2.8B | $2.4B | $2.0B | $2.9B | — | — | — | — | — |
| Enterprise Value | $5.0B | $4.4B | $4.8B | $2.8B | $2.2B | $3.2B | — | — | — | — | — |
| P/E Ratio → | -90.45 | — | — | 63.73 | 30.23 | 173.09 | — | — | — | — | — |
| P/S Ratio | 1.97 | 1.60 | 3.24 | 3.17 | 2.44 | 4.09 | — | — | — | — | — |
| P/B Ratio | 2.39 | 1.92 | 2.13 | 2.67 | 1.75 | 2.57 | — | — | — | — | — |
| P/FCF | 22.03 | 17.86 | 105.11 | 17.93 | 10.71 | 23.31 | — | — | — | — | — |
| P/OCF | 15.90 | 12.90 | 98.70 | 14.88 | 9.28 | 19.58 | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.77 | 5.55 | 3.64 | 2.66 | 4.46 | — | — | — | — | — |
| EV / EBITDA | 12.70 | 11.20 | 57.11 | 13.16 | 9.25 | 15.36 | — | — | — | — | — |
| EV / EBIT | 35.07 | 33.22 | — | 34.07 | 22.82 | 60.66 | — | — | — | — | — |
| EV / FCF | — | 30.99 | 180.19 | 20.55 | 11.68 | 25.41 | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 29.9% | 29.9% | 47.8% | 49.4% | 49.5% | 50.6% | 48.8% | 49.1% | 63.8% | 66.6% | 64.4% |
| Operating Margin | 9.0% | 9.0% | -7.3% | 10.7% | 11.6% | 9.0% | -0.4% | 19.1% | 15.5% | 13.9% | 14.7% |
| Net Profit Margin | -2.2% | -2.2% | -12.8% | 4.9% | 8.0% | 2.3% | -16.5% | 7.1% | 4.5% | 16.4% | 8.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -2.7% | -2.7% | -10.0% | 3.7% | 5.7% | 1.7% | -24.0% | 8.1% | 3.7% | 16.7% | 9.8% |
| ROA | -0.9% | -0.9% | -4.0% | 2.1% | 3.4% | 0.9% | -7.3% | 4.1% | 2.9% | 11.9% | 6.4% |
| ROIC | 3.3% | 3.3% | -2.1% | 4.8% | 5.2% | 3.4% | -0.2% | 10.8% | 10.1% | 9.9% | 10.5% |
| ROCE | 3.9% | 3.9% | -2.4% | 4.9% | 5.3% | 3.7% | -0.2% | 12.3% | 11.7% | 11.8% | 13.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.59 | 1.59 | 1.65 | 0.63 | 0.51 | 0.49 | 0.99 | — | 0.04 | 0.04 | 0.28 |
| Debt / EBITDA | 5.36 | 5.36 | 25.82 | 2.69 | 2.45 | 2.69 | 5.83 | 4.58 | 0.20 | 0.21 | 1.26 |
| Net Debt / Equity | — | 1.41 | 1.52 | 0.39 | 0.16 | 0.23 | 0.80 | — | -0.02 | -0.05 | 0.23 |
| Net Debt / EBITDA | 4.74 | 4.74 | 23.80 | 1.68 | 0.76 | 1.27 | 4.70 | 3.90 | -0.12 | -0.28 | 1.06 |
| Debt / FCF | — | 13.13 | 75.08 | 2.62 | 0.97 | 2.10 | 18.39 | 8.39 | -0.63 | -0.47 | 2.80 |
| Interest Coverage | 0.78 | 0.78 | -1.21 | 2.47 | 10.25 | 2.08 | -0.04 | 1.79 | 28.54 | 21.01 | 18.57 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.44 | 2.44 | 1.90 | 4.39 | 5.62 | 4.26 | 2.84 | 2.37 | 2.00 | 1.40 | 1.45 |
| Quick Ratio | 2.44 | 2.44 | 1.90 | 4.39 | 5.62 | 4.26 | 2.84 | 2.37 | 2.00 | 1.40 | 1.45 |
| Cash Ratio | 1.04 | 1.04 | 0.67 | 2.51 | 3.91 | 2.69 | 1.57 | 1.04 | 0.51 | 0.40 | 0.23 |
| Asset Turnover | — | 0.41 | 0.22 | 0.47 | 0.43 | 0.38 | 0.29 | 0.88 | 0.69 | 0.68 | 0.75 |
| Inventory Turnover | — | — | — | — | — | — | — | 1947.02 | — | — | — |
| Days Sales Outstanding | — | 71.01 | 116.89 | 69.96 | 66.26 | 81.00 | 79.83 | 74.47 | 56.87 | 64.47 | 64.13 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.0% | 0.0% | 0.0% | 9.0% | — | 0.0% | — | — | — | — | — |
| Payout Ratio | — | — | — | 583.9% | — | 1.9% | — | — | — | 2.8% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | 1.6% | 3.3% | 0.6% | — | — | — | — | — |
| FCF Yield | 4.5% | 5.6% | 1.0% | 5.6% | 9.3% | 4.3% | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 2.4% | 3.1% | 0.0% | — | — | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 11.4% | 3.1% | 0.0% | — | — | — | — | — |
| Shares Outstanding | — | $173M | $149M | $146M | $152M | $153M | $153M | $153M | $59M | $59M | $58M |
Includes 30+ ratios · 13 years · Updated daily
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Quick answers to the most common questions about buying FA stock.
First Advantage Corporation's current P/E ratio is -90.5x. The historical average is 89.0x.
First Advantage Corporation's current EV/EBITDA is 12.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.2x.
First Advantage Corporation's return on equity (ROE) is -2.7%. The historical average is 2.4%.
Based on historical data, First Advantage Corporation is trading at a P/E of -90.5x. Compare with industry peers and growth rates for a complete picture.
First Advantage Corporation's current dividend yield is 0.00%.
First Advantage Corporation has 29.9% gross margin and 9.0% operating margin.
First Advantage Corporation's Debt/EBITDA ratio is 5.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Integration and leverage risks
Metrics are mathematically derived from official filings.
Margin Recovery Masks Amortization Drag
Operating margin expanded to 12.7% in 2026Q2 from 2.1% in 2025Q1, but net margin remains thin at 3.8% due to heavy acquisition-related amortization, according to reported financials.
The gross margin volatility—swinging from 23.9% in 2025Q4 to 45.5% in 2026Q2—reflects the mix of pass-through data costs and higher-margin monitoring services, suggesting the underlying earning power is improving as integration progresses. However, the persistent gap between operating and net margins indicates that non-cash charges from the Sterling acquisition continue to suppress GAAP profitability, warranting scrutiny of whether this drag will diminish as amortization schedules mature.
Returns Recovering from Acquisition Trough
ROIC improved to 1.4% in 2026Q2 from -2.7% in 2024Q4, but remains well below pre-acquisition levels, indicating the Sterling deal has yet to generate adequate returns on invested capital.
The sharp decline in ROIC following the acquisition—from 0.6% in 2024Q2 to negative in 2024Q4—reflects the doubling of the asset base without immediate profit contribution. The recent uptick suggests early operational leverage, but the absolute level of returns remains low, implying that the company is still in the value-creation phase of the roll-up strategy. Investors should monitor whether ROIC can approach the mid-single digits as integration benefits materialize and amortization charges subside.
Working Capital Efficiency Improves Post-Acquisition
Cash conversion cycle shortened to 21 days in 2026Q2 from 75 days in 2024Q1, driven by faster collections (DSO down to 61 days) and extended payables, according to quarterly data.
The improvement in DSO from 75 to 61 days suggests better collections discipline or a shift in revenue mix toward larger enterprise clients with prompt payment terms. The extension of DPO to 43 days indicates increased negotiating power with suppliers, likely due to the scale from the Sterling acquisition. These trends point to enhanced working capital management, which supports cash flow generation despite the heavy debt load.
Leverage Elevated but Coverage Stabilizing
Debt-to-equity rose to 1.58 in 2026Q2 from 0.63 in 2024Q1, while interest coverage improved to 1.79x from 0.25x in 2025Q1, indicating debt service is becoming more comfortable.
The post-acquisition leverage surge is evident, with D/EBITDA peaking at 31.05x in 2025Q1 before declining to 17.16x in 2026Q2, reflecting EBITDA growth from integration synergies. Interest coverage has improved from near-zero to 1.79x, but remains thin, leaving limited cushion if cash flows weaken. The elevated leverage introduces refinancing risk, especially if interest rates remain high, though the improving trend suggests the company is deleveraging through earnings growth.
Liquidity Buffer Strengthens Despite Debt
Current ratio improved to 2.53 in 2026Q2 from 1.90 in 2024Q4, with cash of $237.9M, providing a solid cushion against near-term obligations, as per the latest balance sheet.
The liquidity position appears robust, with a current ratio well above 2.0 and a quick ratio of 2.50, indicating minimal reliance on inventory. The improvement from 2024Q4 suggests that cash generation has outpaced debt service and working capital needs. However, the high debt load and goodwill concentration (57% of assets) mean that liquidity could be strained if a goodwill impairment were to occur, though no such impairment is currently indicated.
Misapplied SaaS Metrics Obscure Data-Logistics Model
The market may misapply SaaS-style metrics like EV/Sales to First Advantage, but its 29.88% gross margin and high pass-through costs indicate a data-logistics model, not a software business.
Investors often value recurring-revenue software companies on EV/Sales, but First Advantage's gross margin is structurally lower due to third-party data costs, making such multiples misleading. A more appropriate metric is EV/EBITDA, which at 14.24x appears reasonable given the improving EBITDA trajectory and the potential for margin expansion from automation. Additionally, the negative net margin may cause investors to overlook the strong cash flow generation before non-cash amortization, as evidenced by the 15.4% FCF margin in 2026Q2.