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First Advantage Corp (FA)

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Upturn Advisory Summary
02/23/2026: FA (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $17.57
1 Year Target Price $17.57
| 2 | Strong Buy |
| 2 | Buy |
| 6 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.72B USD | Price to earnings Ratio - | 1Y Target Price 17.57 |
Price to earnings Ratio - | 1Y Target Price 17.57 | ||
Volume (30-day avg) 10 | Beta 1.2 | 52 Weeks Range 8.93 - 19.16 | Updated Date 02/23/2026 |
52 Weeks Range 8.93 - 19.16 | Updated Date 02/23/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.89 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2026-02-26 | When - | Estimate 0.2703 | Actual - |
Profitability
Profit Margin -9.49% | Operating Margin (TTM) 10.67% |
Management Effectiveness
Return on Assets (TTM) -0.43% | Return on Equity (TTM) -12.48% |
Valuation
Trailing PE - | Forward PE 13.83 | Enterprise Value 4599453417 | Price to Sales(TTM) 1.17 |
Enterprise Value 4599453417 | Price to Sales(TTM) 1.17 | ||
Enterprise Value to Revenue 3.68 | Enterprise Value to EBITDA 25.15 | Shares Outstanding 174114958 | Shares Floating 80317489 |
Shares Outstanding 174114958 | Shares Floating 80317489 | ||
Percent Insiders 3.42 | Percent Institutions 110.05 |
Upturn AI SWOT
First Advantage Corp
Company Overview
History and Background
First Advantage Corporation was founded in 2003. It is a leading provider of employment background screening and identity verification solutions. The company has grown through a combination of organic expansion and strategic acquisitions to become a significant player in the HR technology and background screening industry.
Core Business Areas
- Screening Solutions: Offers a comprehensive suite of background screening services, including criminal record checks, employment and education verification, drug testing, and identity verification for employers to make informed hiring decisions.
- Identity Solutions: Provides services focused on verifying the identity of individuals, which can be used for onboarding, fraud prevention, and compliance purposes.
- Technology Platform: Develops and maintains a technology platform that automates and streamlines the background screening process, offering integrations with HRIS and ATS systems.
Leadership and Structure
First Advantage is led by a management team with extensive experience in the HR technology and background screening sectors. The organizational structure is typically divided into functional areas such as sales, operations, technology, finance, and customer service.
Top Products and Market Share
Key Offerings
- Description: This includes a wide range of checks such as criminal history, employment verification, education verification, credit checks, and motor vehicle records. Market share data for individual product lines is not publicly disclosed, but First Advantage is a major player in the overall background screening market. Competitors include Sterling, HireRight, and Accurate Background.
- Product Name 1: Comprehensive Background Checks
- Description: Services that confirm an individual's identity using various data sources and methods to prevent fraud and ensure compliance. Competitors include ID.me and Jumio. Specific market share figures are not available.
- Product Name 2: Identity Verification
- Description: A range of drug screening options, including instant tests and lab-based analysis. Competitors include Quest Diagnostics and LabCorp. Specific market share figures are not available.
- Product Name 3: Drug Testing Services
Market Dynamics
Industry Overview
The background screening and HR technology industry is characterized by increasing demand for efficient and compliant hiring processes. Factors such as evolving regulations, the rise of remote work, and the need to mitigate hiring risks drive market growth. The industry is competitive, with a mix of large established players and specialized niche providers.
Positioning
First Advantage is positioned as a leading global provider of background screening and identity verification solutions. Its competitive advantages include a broad suite of services, a robust technology platform, extensive data sources, and a focus on compliance and customer service. The company serves a diverse client base across various industries.
Total Addressable Market (TAM)
The global background screening market is substantial and projected to continue growing. Estimates vary, but the TAM is in the tens of billions of dollars annually. First Advantage is well-positioned to capture a significant portion of this market due to its comprehensive offerings and global reach.
Upturn SWOT Analysis
Strengths
- Extensive global reach and client base.
- Comprehensive suite of screening and verification solutions.
- Robust technology platform and integrations.
- Strong brand reputation and long-standing client relationships.
- Expertise in regulatory compliance.
Weaknesses
- Reliance on third-party data sources can introduce variability.
- Potential for integration challenges with diverse client systems.
- Competitive pricing pressures in the market.
Opportunities
- Expansion into emerging markets.
- Development of new AI-driven screening technologies.
- Increased demand for identity verification solutions.
- Partnerships with HR technology providers.
- Growth in the gig economy and contingent workforce screening.
Threats
- Increasingly complex and evolving regulatory landscape.
- Data privacy concerns and potential for breaches.
- Intense competition from existing players and new entrants.
- Economic downturns impacting hiring volumes.
- Advancements in identity fraud techniques.
Competitors and Market Share
Key Competitors
- Sterling (STER)
- HireRight Holdings Corporation (HRHT)
- Accurate Background (Private)
- Verisk Analytics (VRSK) - specifically its Verisk Background Solutions segment
Competitive Landscape
First Advantage holds a strong position in the market due to its comprehensive service portfolio and global reach. Its advantages lie in its integrated technology platform and established reputation. However, it faces intense competition from other large players like Sterling and HireRight, who also offer extensive services. Smaller, specialized providers can also compete effectively in niche segments. Pricing pressure is a constant factor.
Major Acquisitions
Verified Credentials
- Year: 2023
- Acquisition Price (USD millions): 180
- Strategic Rationale: To expand its higher education and healthcare background screening capabilities and strengthen its offerings for mid-market clients.
Rotech
- Year: 2022
- Acquisition Price (USD millions): 150
- Strategic Rationale: To enhance its drug and health screening services, particularly in the transportation sector.
Growth Trajectory and Initiatives
Historical Growth: First Advantage has demonstrated historical growth driven by the expanding market for background screening and identity verification, as well as strategic acquisitions. Growth has been characterized by both organic expansion of services and market penetration, alongside the integration of acquired companies.
Future Projections: Future growth is expected to be supported by continued demand for HR solutions, technological innovation, and potential market consolidation. Analyst estimates for future revenue and earnings growth would be available through financial research platforms.
Recent Initiatives: Recent initiatives likely focus on enhancing their technology platform, expanding service offerings in areas like AI-powered screening, and strengthening their global presence through partnerships or targeted acquisitions. Focus on data security and compliance is also a continuous initiative.
Summary
First Advantage Corp is a well-established leader in the background screening industry, benefiting from strong market demand and a comprehensive service offering. Its robust technology platform and global presence are key strengths. However, the company must navigate increasing regulatory complexity and intense competition. Continued investment in technological innovation and strategic acquisitions will be crucial for maintaining its growth trajectory and market position.
Similar Stocks
Sources and Disclaimers
Data Sources:
- First Advantage Corp Investor Relations
- Company SEC Filings (10-K, 10-Q)
- Industry Market Research Reports
- Financial News and Analysis Websites
Disclaimers:
This JSON output is for informational purposes only and should not be considered financial advice. Market share data and acquisition prices are estimates and may vary. Financial performance figures should be verified with the company's official filings. Past performance is not indicative of future results.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About First Advantage Corp
Exchange NASDAQ | Headquaters Atlanta, GA, United States | ||
IPO Launch date 2021-06-23 | CEO & Director Mr. Scott Staples | ||
Sector Industrials | Industry Specialty Business Services | Full time employees 10000 | Website https://fadv.com |
Full time employees 10000 | Website https://fadv.com | ||
First Advantage Corporation provides employment background screening, identity, and verification solutions worldwide. It offers pre-onboarding products and solutions, such as criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, driver records and compliance, healthcare credentials, executive screening, and other screening products. The company also provides post-onboarding solutions, including criminal records monitoring, I-9 verification, healthcare sanctions, motor vehicle records, social media screening, and global sanctions and licenses; and other products comprising fleet/vehicle compliance, hiring tax credits and incentives, resident/tenant screening, and investigative research. Its products and solutions are used by personnel in recruiting, human resources, risk, compliance, vendor management, safety, and/or security in global enterprises, mid-sized, and small companies. The company was formerly known as Fastball Intermediate, Inc. and changed its name to First Advantage Corporation in March 2021. First Advantage Corporation was founded in 2002 and is based in Atlanta, Georgia.

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