First Advantage Corp(FA)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
2-STAR RATING
PASS
LAST CLOSE
$21.25
10/23/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
  • ALL
  • 1Y
  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
  • PASS (Skip)
Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for FA

10/23/2026: FA (2-star) is currently NOT-A-BUY. Pass it for now.

First Advantage Corp is a significant provider of technology-enabled background screening and identity verification services for global enterprises. The company benefits from a strong, integrated platform that serves as a sticky, recurring revenue engine, particularly within large corporate hiring ecosystems. Its primary growth story revolves around the increasing corporate demand for digital trust and the potential margin improvements through scale and automated onboarding. However, the company faces risks from economic sensitivity to hiring volumes, potential integration hurdles following major acquisitions like Sterling Check, and evolving data regulatory landscapes. The stock is best suited for growth-oriented investors who can tolerate volatility, as it lacks a dividend and is sensitive to labor market cycles.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorStrong fitThe company operates in a secular growth market driven by increasing demand for digital trust and verification services.
Momentum investorMixed fitMomentum remains conditional on sustained market hiring trends and successful integration of the Sterling acquisition.
Value investorMixed fitValuation is often tied to growth expectations rather than traditional value metrics.
Dividend investorWeak fitThe company focuses on reinvesting cash flow for expansion and M&A rather than paying dividends.
Low-risk investorWeak fitExposure to labor market volatility and high debt levels from acquisitions increases risk profile.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock is susceptible to fluctuations based on labor market economic reports and interest rate environments.
Valuation riskMediumGrowth expectations are built into the share price, leaving little room for error if revenue growth slows.
Competition risk (HR tech consolidation)Medium / highThe sector faces pressure from both niche AI players and large incumbents like EFX and TRU.
Business qualityStrongThe company maintains strong enterprise relationships and high switching costs for its platform users.
Dividend incomeLow / noneInvestors should not expect income generation from this stock.
Execution riskMedium / highIntegrating major acquisitions like Sterling is operationally demanding and can distract from core service improvements.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit -15.34%
Avg. Invested days 31
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/23/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
FA receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by soft unit economics, and weak price momentum.

Company Fundamentals

★★★★★
FA has solid overall fundamentals (4 stars), with moderate financial health, strong growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+68.4%) and solid cash generation (FCF margin 8.9%) are partially offset by weak profitability (net margin -2.2%), modest insider ownership of 2.56%.

Financial Health Rating

★★★★★
FA's financial health is supported by moderate cash strength, including free-cash-flow generation (8.9% of revenue). Overall financial-health metrics support a 3-star score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is FA's strongest growth driver at +432.1% FY2025 versus FY2024 (strong, 5 stars). Revenue growth (+83.0%, strong) and earnings growth (+68.4%, strong) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 107.4% and approximately 54.6% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 2.56% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

SILVER LAKE GROUP, L.L.C. 52.14%
T. Rowe Price Associates, Inc. 9.15%
BlackRock Inc 7.02%
Capital World Investors 6.22%
FMR Inc 4.46%

Unit Economics (Per $1K Revenue)

★★★★★
FA generates approximately $299 of gross profit, $90 of operating income, and $89 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Soft margins explain the 2-star rating, with weak cash conversion and weak capital efficiency.

Economic Dimensions

★★★★★
Effective Tax Rate: 6.52%

Quantitative Style Profile

★★★★★
FA has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Small / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 3.64B USD
Price to earnings Ratio 151.57
1Y Target Price 26
Price to earnings Ratio 151.57
1Y Target Price 26
Volume (30-day avg) 1.7M shares
Beta 1.14
52 Weeks Range 8.82 - 25.15
Updated Date 10/23/2026
52 Weeks Range 8.82 - 25.15
Updated Date 10/23/2026
Dividends yield (FY) -
Basic EPS (TTM) 0.14

How Company Makes Money

Business areaWhat it includesRetail investor read
Background Screening ServicesCriminal history checks, professional verifications, and drug screening for corporate clients.This is the primary revenue engine, scaling based on total hiring volume.
Identity Verification and ComplianceDigital identity checks and automated regulatory compliance tools.A higher-growth segment benefiting from the shift toward digital onboarding.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 151.57
Forward PE 12.9
Enterprise Value 5.24B
Price to Sales(TTM) 2.19
Enterprise Value 5.24B
Price to Sales(TTM) 2.19
Enterprise Value to Revenue 3.15
Enterprise Value to EBITDA 12.32
Shares Outstanding 171.75M
Shares Floating 93.80M
Shares Outstanding 171.75M
Shares Floating 93.80M
Percent Insiders 2.56
Percent Institutions 107.38

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

Form CRS provides a relationship summary of our automated advisory services, flat subscription fees, and conflicts of interest. Form ADV Part 2A brochure contains complete details on services, billing, and disclosures. If any summary differs from our current regulatory filings, the filed Form ADV controls.