First Advantage Corporation (FA): a potential bargain?

Buy — the crash is just the majority owner (Silver Lake) selling shares, not a business problem; Q2 earnings were strong and guidance was raised.

🔥 HOT Fundamentals57/100

Fell 10% in 1 trading day(s) — now $21.17

Why FA dropped

The stock fell because private-equity firm Silver Lake announced it is selling 12.5 million shares (plus distributing 4.2 million more to its own investors) in a secondary offering priced at $22.20, reducing its majority stake — this floods the market with shares and typically pressures the price temporarily, but it says nothing about the company's operations.

Fwd P/E 14.1Op margin 12.8%Rev growth 14.9%Debt/equity 157.7%Analyst upside 21.6%

How this scored 57/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 1.5%

✅ Generates cash Free cash flow $215M

✅ Not drowning in debt Debt/equity 157.7% (limit 200%)

✅ Can pay its bills Current ratio 2.5 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 5/25

Operating margin 12.8% 5/9

Net profit margin 1.5% 1/8

Return on equity 1.9% 0/8

Growth Is it getting bigger, or dying? 22/25

Revenue growth 14.9% 6/9

Earnings growth 5498.7% 8/8

Expected profit change 903.1% 8/8

Value Is it cheap right now? 13/25

Forward P/E 14.1 8/10

PEG ratio unknown 2/8

Analyst target upside 21.6% 3/7

Balance sheet Will it survive? 17/25

Debt / equity 157.7% 2/10

Current ratio 2.5 8/8

Free cash flow $215M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-12. Research only — not financial advice.