📊 FCFS Key Takeaways
Is FirstCash Holdings, Inc. (FCFS) a Good Investment?
FirstCash demonstrates exceptional fundamentals with 119% revenue growth, strong gross margins (51.6%), and consistent free cash flow generation ($98.7M). However, elevated leverage (0.98x Debt/Equity) with tight interest coverage (2.9x) and anemic returns on capital (ROE 4.7%, ROA 2.0%) warrant cautious optimism pending growth sustainability validation.
FirstCash shows strong fundamental execution with solid profitability, healthy returns on capital, and robust free cash flow generation. Financial health is generally sound given strong liquidity and adequate interest coverage, though the near-100% debt-to-equity ratio and unusually large revenue jump suggest growth quality should be monitored to confirm that expansion remains profitable and durable.
Why Buy FirstCash Holdings, Inc. Stock? FCFS Key Strengths
- Exceptional 119.4% YoY revenue growth with corresponding 29.5% EPS growth signals strong execution and operating leverage
- Robust liquidity position (4.77x current ratio, 3.42x quick ratio) provides financial flexibility despite high leverage
- Positive free cash flow generation (98.7M, 9.4% FCF margin) demonstrates the growth is cash-backed, not accounting-driven
- Healthy gross margins (51.6%) and operating margins (13.8%) within competitive retail-miscellaneous sector range
- Strong cash generation, with $531.04M of free cash flow and a 14.5% FCF margin
- Healthy profitability profile, including 50.3% gross margin, 12.2% operating margin, and 9.0% net margin
- Solid balance sheet support from 4.55x current ratio and 8.8x interest coverage despite meaningful debt
FCFS Stock Risks: FirstCash Holdings, Inc. Investment Risks
- High financial leverage (0.98x Debt/Equity, $2.3B debt) combined with concerning interest coverage (2.9x) leaves limited downside protection if revenues decline
- Extraordinarily high revenue growth (119% YoY) is likely unsustainable; normalization would pressure margin expansion and debt servicing capacity
- Severely depressed returns on capital (ROE 4.7%, ROA 2.0%) indicate inefficient capital deployment despite rapid growth; $5.4B asset base generating insufficient returns
- Asset-heavy balance sheet ($5.4B total assets) relative to equity base ($2.3B) reflects capital-intensive operations with limited ROIC
- Leverage is elevated, with $2.22B of long-term debt and debt-to-equity of 0.98x
- Revenue growth of 119.4% far exceeds net income growth of 27.6%, which may indicate lower-quality or acquisition-driven growth
- Cash balance of $125.20M is modest relative to total debt, reducing flexibility if operating conditions weaken
Key Metrics to Watch
- Revenue growth trajectory over next 2-4 quarters - confirm whether 119% growth normalizes sustainably or represents peak cycle
- Operating margin sustainability - monitor whether margins contract as growth moderates or scale benefits offset
- Debt reduction and interest coverage improvement - validate deleveraging capacity given 2.9x coverage ratio
- Return on Assets and Equity trends - critical to determine if capital deployment efficiency improves as business matures
- Free cash flow conversion and operating cash flow durability
- Debt reduction progress and interest coverage stability
FirstCash Holdings, Inc. (FCFS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.77x current ratio provides a solid financial cushion.
FCFS Profit Margin, ROE & Profitability Analysis
FCFS vs Consumer Sector: How FirstCash Holdings, Inc. Compares
How FirstCash Holdings, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FirstCash Holdings, Inc. Stock Overvalued? FCFS Valuation Analysis 2026
Based on fundamental analysis, FirstCash Holdings, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FirstCash Holdings, Inc. Balance Sheet: FCFS Debt, Cash & Liquidity
FCFS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: FirstCash Holdings, Inc.'s revenue has grown significantly by 42% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.80 reflects profitable operations.
FCFS Revenue Growth, EPS Growth & YoY Performance
FCFS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $371.1M | $83.6M | $1.87 |
| Q3 2025 | $363.1M | $49.1M | $1.44 |
| Q2 2025 | $363.5M | $49.1M | $1.08 |
| Q1 2025 | $366.8M | $61.4M | $1.35 |
| Q3 2024 | $335.1M | $45.2M | $1.26 |
| Q2 2024 | $320.9M | $45.2M | $0.99 |
| Q1 2024 | $327.9M | $47.4M | $1.02 |
| Q3 2023 | $300.9M | $28.0M | $1.26 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FirstCash Holdings, Inc. Dividends, Buybacks & Capital Allocation
FCFS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for FirstCash Holdings, Inc. (CIK: 0000840489)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FCFS
What is the AI rating for FCFS?
FirstCash Holdings, Inc. (FCFS) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FCFS's key strengths?
Claude: Exceptional 119.4% YoY revenue growth with corresponding 29.5% EPS growth signals strong execution and operating leverage. Robust liquidity position (4.77x current ratio, 3.42x quick ratio) provides financial flexibility despite high leverage. ChatGPT: Strong cash generation, with $531.04M of free cash flow and a 14.5% FCF margin. Healthy profitability profile, including 50.3% gross margin, 12.2% operating margin, and 9.0% net margin.
What are the risks of investing in FCFS?
Claude: High financial leverage (0.98x Debt/Equity, $2.3B debt) combined with concerning interest coverage (2.9x) leaves limited downside protection if revenues decline. Extraordinarily high revenue growth (119% YoY) is likely unsustainable; normalization would pressure margin expansion and debt servicing capacity. ChatGPT: Leverage is elevated, with $2.22B of long-term debt and debt-to-equity of 0.98x. Revenue growth of 119.4% far exceeds net income growth of 27.6%, which may indicate lower-quality or acquisition-driven growth.
What is FCFS's revenue and growth?
FirstCash Holdings, Inc. reported revenue of $1.1B.
Does FCFS pay dividends?
FirstCash Holdings, Inc. pays dividends, with $18.5M distributed to shareholders in the trailing twelve months.
Where can I find FCFS SEC filings?
Official SEC filings for FirstCash Holdings, Inc. (CIK: 0000840489) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FCFS's EPS?
FirstCash Holdings, Inc. has a diluted EPS of $2.43.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FCFS a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, FirstCash Holdings, Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is FCFS stock overvalued or undervalued?
Valuation metrics for FCFS: ROE of 4.7% (sector avg: 18%), net margin of 10.2% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy FCFS stock in 2026?
Our dual AI analysis gives FirstCash Holdings, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is FCFS's free cash flow?
FirstCash Holdings, Inc.'s operating cash flow is $153.6M, with capital expenditures of $54.9M. FCF margin is 9.4%.
How does FCFS compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 10.2% (avg: 8%), ROE 4.7% (avg: 18%), current ratio 4.77 (avg: 1.5).