First Advantage Gross Profit vs. EBITDA
| FA Stock | USD 19.28 0.45 2.28% |
Gross Profit | First Reported 2003-03-31 | Previous Quarter 92.2 M | Current Value 98.2 M | Quarterly Volatility 37.8 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.63 | 0.4936 |
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For First Advantage profitability analysis, we use financial ratios and fundamental drivers that measure the ability of First Advantage to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well First Advantage Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between First Advantage's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of First Advantage Corp over time as well as its relative position and ranking within its peers.
First |
Is Human Resource & Employment Services 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 First Advantage. If investors know First 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 First Advantage 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 (0.85) | Earnings Share 0.03 | Revenue Per Share 5.259 | Quarterly Revenue Growth (0.01) | Return On Assets 0.0309 |
The market value of First Advantage Corp is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First Advantage's value that differs from its market value or its book value, called intrinsic value, which is First Advantage'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 First Advantage's market value can be influenced by many factors that don't directly affect First Advantage'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 First Advantage's value and its price as these two are different measures arrived at by different means. Investors typically determine if First Advantage is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First Advantage'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.
First Advantage Corp EBITDA vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining First Advantage's current stock value. Our valuation model uses many indicators to compare First Advantage value to that of its competitors to determine the firm's financial worth. First Advantage Corp is rated # 4 in gross profit category among its peers. It is rated # 5 in ebitda category among its peers totaling about 0.53 of EBITDA per Gross Profit. The ratio of Gross Profit to EBITDA for First Advantage Corp is roughly 1.90 . At present, First Advantage's Gross Profit is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the First Advantage's earnings, one of the primary drivers of an investment's value.First EBITDA vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
First Advantage |
| = | 401.1 M |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.
First Advantage |
| = | 210.99 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.
First EBITDA Comparison
First Advantage is currently under evaluation in ebitda category among its peers.
First Advantage Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in First Advantage, profitability is also one of the essential criteria for including it into their portfolios because, without profit, First Advantage will eventually generate negative long term returns. The profitability progress is the general direction of First Advantage's change in net profit over the period of time. It can combine multiple indicators of First Advantage, 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -21.2 M | -20.1 M | |
| Operating Income | 81.5 M | 54.7 M | |
| Income Before Tax | 48.5 M | 51.6 M | |
| Total Other Income Expense Net | -33 M | -31.4 M | |
| Net Income | 37.3 M | 27.9 M | |
| Income Tax Expense | 11.2 M | 21.3 M | |
| Net Income Applicable To Common Shares | 58.1 M | 32.1 M | |
| Net Interest Income | -25.3 M | -26.6 M | |
| Interest Income | 135 K | 128.2 K | |
| Net Income From Continuing Ops | 42.6 M | 48.2 M | |
| Non Operating Income Net Other | -35 M | -36.8 M | |
| Change To Netincome | 1.8 M | 1.9 M | |
| Net Income Per Share | 0.26 | 0.36 | |
| Income Quality | 4.37 | 4.58 | |
| Net Income Per E B T | 0.77 | 0.49 |
First Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on First Advantage. 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 First Advantage 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 First Advantage's important profitability drivers and their relationship over time.
Use First Advantage 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 First Advantage 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 First Advantage will appreciate offsetting losses from the drop in the long position's value.First Advantage Pair Trading
First Advantage Corp Pair Trading Analysis
The ability to find closely correlated positions to First Advantage could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Advantage 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 First Advantage - 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 First Advantage Corp to buy it.
The correlation of First Advantage 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 First Advantage moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Advantage Corp 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 First Advantage 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.Use Investing Themes to Complement your First Advantage position
In addition to having First Advantage in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Retail Thematic Idea Now
Retail
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Retail theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Retail Theme or any other thematic opportunities.
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Check out Investing Opportunities. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
To fully project First Advantage's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of First Advantage Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include First Advantage's income statement, its balance sheet, and the statement of cash flows.