(FA) First Advantage - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US31846B1089

FA: Background, Screening, Verification, Checks, Monitoring, Solutions

First Advantage Corporation (NASDAQ:FA) is a global leader in employment background screening, identity verification, and related solutions. Founded in 2002 and headquartered in Atlanta, Georgia, the company operates at the intersection of technology and compliance, providing critical tools for employers to mitigate risk and ensure regulatory adherence. Its offerings span pre-onboarding and post-onboarding solutions, addressing the full lifecycle of employment screening.

The companys pre-onboarding solutions include criminal background checks, drug and health screenings, education and work history verification, and identity checks, among others. These tools are designed to help employers make informed hiring decisions while maintaining compliance with evolving regulations. Post-onboarding solutions extend this capability, offering ongoing monitoring of criminal records, healthcare sanctions, and social media activity, as well as global sanctions and license checks. Additional products include fleet compliance, hiring tax credits, and investigative research, catering to a wide range of industries and use cases.

First Advantage serves clients across the spectrum of company sizes, from small businesses to global enterprises. Its solutions are particularly valued by HR, risk management, compliance, and security teams. The companys technology-driven approach has allowed it to scale efficiently, with a strong focus on accuracy, speed, and user experience. This has positioned it as a key player in the growing Human Resource & Employment Services industry.

From a financial perspective, First Advantage operates with a market capitalization of approximately $3.42 billion, reflecting its significant scale and market presence. The companys trailing P/E ratio of 660.67 indicates a high valuation relative to earnings, while the forward P/E of 20.24 suggests expectations of improved profitability. The price-to-book ratio of 3.72 and price-to-sales ratio of 4.53 highlight the premium investors are placing on its growth prospects and market position.

Investors and fund managers evaluating First Advantage should consider its role as a critical infrastructure provider in the employment ecosystem. The companys recurring revenue model, driven by the necessity of its services, provides stability. However, the high valuation multiples warrant close scrutiny of its ability to sustain growth and profitability in a competitive environment. The companys ability to innovate and expand its product offerings will be key to delivering shareholder value over the long term.

Additional Sources for FA Stock

FA Stock Overview

Market Cap in USD 2,329m
Sector Industrials
Industry Specialty Business Services
GiC Sub-Industry Human Resource & Employment Services
IPO / Inception 2021-06-23

FA Stock Ratings

Growth 5y -2.01%
Fundamental -4.41%
Dividend 1.0%
Rel. Strength Industry -24.9
Analysts 3.89/5
Fair Price Momentum 12.03 USD
Fair Price DCF 1.02 USD

FA Dividends

Dividend Yield 12m 0.00%
Yield on Cost 5y %
Annual Growth 5y -100.00%
Payout Consistency 1.0%

FA Growth Ratios

Growth Correlation 3m -39.2%
Growth Correlation 12m 52.9%
Growth Correlation 5y 19.9%
CAGR 5y -7.83%
CAGR/Max DD 5y -0.14
Sharpe Ratio 12m -0.60
Alpha -31.15
Beta 1.37
Volatility 70.09%
Current Volume 666.2k
Average Volume 20d 1162.7k
What is the price of FA stocks?
As of March 15, 2025, the stock is trading at USD 13.09 with a total of 666,231 shares traded.
Over the past week, the price has changed by -1.87%, over one month by -34.32%, over three months by -31.75% and over the past year by -18.09%.
Is First Advantage a good stock to buy?
Neither. Based on ValueRay Fundamental Analyses, First Advantage is currently (March 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of -4.41 and therefor a neutral outlook according to the companies health.
Based on ValueRays Analyses, Dividends and Discounted-Cash-Flow, the Fair Value of FA as of March 2025 is 12.03. This means that FA is currently overvalued and has a potential downside of -8.1%.
Is FA a buy, sell or hold?
First Advantage has received a consensus analysts rating of 3.89. Therefor, it is recommend to buy FA.
  • Strong Buy: 2
  • Buy: 4
  • Hold: 3
  • Sell: 0
  • Strong Sell: 0
What are the forecast for FA stock price target?
According to ValueRays Forecast Model, FA First Advantage will be worth about 13 in March 2026. The stock is currently trading at 13.09. This means that the stock has a potential downside of -0.76%.
Issuer Forecast Upside
Wallstreet Target Price 18.9 44.1%
Analysts Target Price 21.8 66.8%
ValueRay Target Price 13 -0.8%