Added to YB: 2024-04-22
Pitch date: 2024-04-19
FA [bullish]
First Advantage Corporation
-5.16%
current return
Author Info
Directionally Correct Research shares is a generalist hedge fund analyst sharing stock pitches in the small to mid cap space. Sign up for the newsletter.
Company Info
First Advantage Corporation provides employment background screening, identity, and verification solutions worldwide.
Market Cap
$2.4B
Pitch Price
$15.32
Price Target
27.00 (+86%)
Dividend
N/A
EV/EBITDA
49.26
P/E
-18.35
EV/Sales
5.06
Sector
Professional Services
Category
growth
First Advantage Corporation - $FA
FA/STER merger creates background check giant with $1.75B+ 2026 sales. Combo benefits from FA mgmt, scale advantages in data, costs & pricing. Despite macro risk, sees 8%+ growth, 500bps+ margin expansion. 10.5x EBITDA on $590M 2026 EBITDA = $27 (+25% IRR). Deleverages 4x to 2x. Risks: cycle, debt, antitrust.
Read full article (7 min)