FirstCash EBITDA vs. Price To Earning

FCFS Stock  USD 106.38  1.39  1.32%   
Considering the key profitability indicators obtained from FirstCash's historical financial statements, FirstCash's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess FirstCash's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
906.7 M
Current Value
952 M
Quarterly Volatility
309.1 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, FirstCash's Price To Sales Ratio is comparatively stable compared to the past year. EV To Sales is likely to gain to 3.33 in 2024, whereas Sales General And Administrative To Revenue is likely to drop 0.05 in 2024. At this time, FirstCash's Operating Income is comparatively stable compared to the past year. Net Income is likely to gain to about 230.3 M in 2024, despite the fact that Total Other Income Expense Net is likely to grow to (363.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.370.4782
Significantly Down
Slightly volatile
Net Profit Margin0.06510.0696
Notably Down
Slightly volatile
Operating Profit Margin0.120.2142
Way Down
Slightly volatile
Pretax Profit Margin0.10.0929
Significantly Up
Slightly volatile
Return On Assets0.06120.0511
Fairly Up
Slightly volatile
Return On Equity0.0880.1098
Significantly Down
Slightly volatile
For FirstCash profitability analysis, we use financial ratios and fundamental drivers that measure the ability of FirstCash to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well FirstCash utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between FirstCash's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of FirstCash over time as well as its relative position and ranking within its peers.
  

FirstCash's Revenue Breakdown by Earning Segment

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Is Consumer Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of FirstCash. If investors know FirstCash will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about FirstCash listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.143
Dividend Share
1.43
Earnings Share
5.41
Revenue Per Share
74.459
Quarterly Revenue Growth
0.065
The market value of FirstCash is measured differently than its book value, which is the value of FirstCash that is recorded on the company's balance sheet. Investors also form their own opinion of FirstCash's value that differs from its market value or its book value, called intrinsic value, which is FirstCash's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because FirstCash's market value can be influenced by many factors that don't directly affect FirstCash's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between FirstCash's value and its price as these two are different measures arrived at by different means. Investors typically determine if FirstCash is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FirstCash's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

FirstCash Price To Earning vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining FirstCash's current stock value. Our valuation model uses many indicators to compare FirstCash value to that of its competitors to determine the firm's financial worth.
FirstCash is rated # 5 in ebitda category among its peers. It is rated # 3 in price to earning category among its peers . The ratio of EBITDA to Price To Earning for FirstCash is about  25,221,363 . At this time, FirstCash's EBITDA is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value FirstCash by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

FirstCash Price To Earning vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

FirstCash

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
906.71 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

FirstCash

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
35.95 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

FirstCash Price To Earning Comparison

FirstCash is currently under evaluation in price to earning category among its peers.

FirstCash Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in FirstCash, profitability is also one of the essential criteria for including it into their portfolios because, without profit, FirstCash will eventually generate negative long term returns. The profitability progress is the general direction of FirstCash's change in net profit over the period of time. It can combine multiple indicators of FirstCash, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-43 M-45.2 M
Operating Income675.1 M708.8 M
Net Income219.3 M230.3 M
Income Tax Expense73.5 M77.2 M
Income Before Tax292.8 M307.5 M
Total Other Income Expense Net-382.2 M-363.1 M
Net Income Applicable To Common Shares291.5 M306.1 M
Net Income From Continuing Ops229.8 M160.8 M
Non Operating Income Net Other250.2 K222.4 K
Interest Income1.5 M2.3 M
Net Interest Income-85.2 M-80.9 M
Change To Netincome-62.7 M-59.5 M
Net Income Per Share 4.80  5.04 
Income Quality 1.90  0.95 
Net Income Per E B T 0.75  0.51 

FirstCash Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on FirstCash. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of FirstCash position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the FirstCash's important profitability drivers and their relationship over time.

Use FirstCash in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if FirstCash position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FirstCash will appreciate offsetting losses from the drop in the long position's value.

FirstCash Pair Trading

FirstCash Pair Trading Analysis

The ability to find closely correlated positions to FirstCash could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace FirstCash when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back FirstCash - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling FirstCash to buy it.
The correlation of FirstCash is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as FirstCash moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if FirstCash moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for FirstCash can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your FirstCash position

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Additional Tools for FirstCash Stock Analysis

When running FirstCash's price analysis, check to measure FirstCash's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy FirstCash is operating at the current time. Most of FirstCash's value examination focuses on studying past and present price action to predict the probability of FirstCash's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move FirstCash's price. Additionally, you may evaluate how the addition of FirstCash to your portfolios can decrease your overall portfolio volatility.