First Advantage Intrinsic Stock Value – Emerald Mutual Fund Advisers Trust decreases holdings in First Advantage Co. by 4.1% in Q3

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First Advantage ($NASDAQ:FA) Co. is a leading provider of background screening and identity verification solutions for businesses and organizations worldwide. Their services help companies make informed hiring decisions and mitigate risk by providing comprehensive background checks, drug testing, and other pre-employment services.

However, the latest 13F filing by Emerald Mutual Fund Advisers Trust shows that they have decreased their holdings in First Advantage Co. by 4.1% in the third quarter. This decrease in investment by one of the major shareholders of First Advantage Co. may raise some concerns among investors. However, it is important to note that this reduction in holdings is relatively small and does not necessarily indicate a lack of confidence in the company’s performance. It is also worth mentioning that Emerald Mutual Fund Advisers Trust is not the only major shareholder of First Advantage Co. Other institutions and individual investors may still hold a significant amount of stock in the company, and their actions should also be taken into consideration when evaluating the overall sentiment towards the stock.

Additionally, a reduction in investment by one shareholder does not necessarily reflect the overall performance or potential of a company. There could be various reasons behind this decision, such as portfolio diversification or a reallocation of funds. Therefore, it is important to consider all factors and do thorough research before making any investment decisions. The company’s strong performance and reputation in the industry should still be taken into consideration, along with other factors, to get a holistic view of the company’s potential for growth.

Analysis – First Advantage Intrinsic Stock Value

During our analysis of FIRST ADVANTAGE, we took a deep dive into the company’s fundamentals. These included factors such as revenue growth, profitability, debt levels, and competitive landscape. We found that FIRST ADVANTAGE has been performing well in terms of revenue growth, with a consistent upward trend over the past few years. This is a positive sign for the company’s future potential. Based on our calculations using our proprietary Valuation Line, we have determined that the fair value of FIRST ADVANTAGE’s stock is around $14.9. This takes into consideration all of the aforementioned fundamentals and provides us with a strong estimate of the company’s worth. However, at the current price of $17.56 per share, FIRST ADVANTAGE is trading at a 17.6% premium to its fair value. This may indicate that the market is overvaluing FIRST ADVANTAGE’s stock, and investors should exercise caution before investing. While it is always tempting to jump on a stock that is trading above its fair value, it is important to consider all factors and make an informed decision. It is possible that the current market conditions are driving up the stock price, but it may not be sustainable in the long term. However, at its current price, there may be better investment opportunities elsewhere. We will continue to monitor the company’s performance and adjust our valuation as needed in the future. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for First Advantage. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for First Advantage. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for First Advantage. More…

Key Ratios Snapshot

Some of the financial key ratios for First Advantage are shown below. More…

Peers

Its competitors include Zeuus Inc, Anacomp Inc, and Spire Global Inc.

– Zeuus Inc ($OTCPK:ZUUS)

Zeuus Inc is a publicly traded company with a market capitalization of 527.55 million as of 2022. The company has a return on equity of 1191.01%. Zeuus Inc is a provider of online marketing and advertising services. The company offers a range of services including search engine optimization, pay per click management, and social media marketing. Zeuus Inc is headquartered in San Francisco, California.

– Anacomp Inc ($OTCPK:ANMP)

Anacomp Inc is a data management company that provides solutions for storing, managing, and analyzing data. The company has a market cap of 3.74M as of 2022 and a return on equity of 55.96%. Anacomp Inc’s products and services include data storage, data management, data analysis, and data security. The company serves customers in the United States, Canada, and Europe.

– Spire Global Inc ($NYSE:SPIR)

Spire Global is a data and analytics company that uses data from its constellation of 75 nanosatellites to provide insights into global maritime, aviation, and weather patterns. The company has a market cap of 180.46M as of 2022 and a return on equity of -7.96%.

Summary

Emerald Mutual Fund Advisers Trust reduced its stake in First Advantage Co. by 4.1% in the third quarter, signaling a lack of confidence in the company’s future performance. This news coincided with a drop in the company’s stock price, further dampening investor sentiment. It is important to note that the decrease in holdings by Emerald Mutual Fund Advisers Trust does not necessarily indicate a negative outlook for the company, as there could be various reasons for the sell-off. However, investors should continue to closely monitor any further changes in holdings of First Advantage Co. by institutional funds for potential insights into its future prospects.