FCFS Stock Analysis — FirstCash Holdings
Sector: Financials
AI Verdict
FCFS trades at 19.5x next year's earnings while analysts expect 53.0% EPS growth—this is cheap for the growth on offer if its physical network moat continues to drive profitable expansion.
Competitive Moat
FirstCash operates a large network of pawn shops across the US and Latin America, giving it a physical footprint and regulatory expertise that are hard for new entrants to replicate. Its scale enables efficient sourcing and resale of collateral, creating a cost advantage in a highly localized business.
Summary
FCFS is notable for its 53.0% expected EPS growth next year, far outpacing most financials.
Where It Stands
Shares trade at 19.5x forward earnings versus a sector median of 14x, with trailing revenue growth of 14.4% and a PEG of 0.56 signaling that the growth justifies the premium.
Key Metrics
- Trailing P/E: 29.8x
- Forward P/E: 19.5x
- PEG Ratio: 0.56
- Earnings Growth: +0.5%
- Revenue Growth: +0.1%
- Dividend Yield: 0.01%
- 52-Week High: $230.72
- 52-Week Low: $119.20
Analyst Consensus
10 Buy · 3 Hold · 0 Sell (13 analysts)
Bull Case
A 53.0% forward EPS growth rate against a 19.5x forward P/E means investors are paying a low price for substantial earnings acceleration.
Bear Case
If the forward P/E were to compress to the sector median of 14x, the stock would lose about 28% from current valuation levels.
Catalyst to Watch
Watch for quarterly earnings beats or misses, as any shortfall versus the 53.0% EPS growth expectation could trigger a sharp P/E reset.