FirstCash Holdings Inc (FCFS, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $5.87 billion. The current price of $130.05 reflects a 1.84% gain over the past week and an impressive 18.49% gain over the past three months. According to the GF Value, which is currently at $119.98, FirstCash Holdings is considered fairly valued, a status that has been consistent since the past GF Value of $116.72 three months ago. This valuation suggests that the stock is trading at a price close to its intrinsic value.
Introduction to FirstCash Holdings Inc
FirstCash Holdings Inc, operating within the credit services industry, is a leading operator of pawn stores in the United States and Latin America. The company specializes in loans secured by personal property, with a significant portion of its revenue stemming from the U.S. Pawn segment. FirstCash Holdings Inc's business model allows borrowers to either repay their loans with interest or forfeit their property without additional penalties. Interest from these loans accounts for nearly 30% of the company's total revenue, while the sale of forfeited property in retail stores contributes approximately 70%. 
Assessing FirstCash Holdings' Profitability
FirstCash Holdings Inc boasts a strong Profitability Rank of 8/10, indicating a high likelihood of continued profitable operations. The company's operating margin stands at 12.36%, outperforming 39.37% of 381 companies in the industry. Its return on equity (ROE) is 11.47%, higher than 69.53% of its peers, while the return on assets (ROA) at 5.43% surpasses 80.82% of 537 companies. Additionally, FirstCash Holdings' return on invested capital (ROIC) is 7.67%, better than 82.03% of 395 companies. These figures underscore a decade of consistent profitability, a feat achieved by less than 0.2% of companies in the sector. 
Growth Trajectory of FirstCash Holdings
The company's Growth Rank is an exceptional 10/10, reflecting its robust expansion in revenue and profitability. The 3-year revenue growth rate per share is an impressive 20.70%, surpassing 74.74% of 487 companies. Over a 5-year period, the revenue growth rate per share is 11.10%, higher than 66.9% of 432 companies. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is 11.21%, which is more favorable than 61.86% of 97 companies. The 3-year EPS without NRI growth rate is a remarkable 26.30%, and the 5-year rate is 11.60%, both indicating strong earnings potential. 
Notable Shareholders in FirstCash Holdings
FirstCash Holdings has attracted the attention of prominent investors. Jim Simons (Trades, Portfolio) holds 136,841 shares, representing a 0.3% stake in the company. Steven Cohen (Trades, Portfolio) follows with 63,300 shares, accounting for 0.14%, and Ray Dalio (Trades, Portfolio) holds 26,203 shares, which translates to a 0.06% share percentage. The involvement of these respected investors signals confidence in FirstCash Holdings' financial health and future prospects.
Competitive Landscape
When compared to its competitors, FirstCash Holdings maintains a competitive market position. Blue Owl Capital Corp (OBDC, Financial) has a slightly higher market cap of $6.04 billion, while OneMain Holdings Inc (OMF, Financial) is close behind with a market cap of $5.83 billion. SLM Corp (SLM, Financial) trails with a market cap of $4.61 billion. FirstCash Holdings' performance and valuation place it solidly within this competitive set.
Conclusion
In summary, FirstCash Holdings Inc's recent stock performance has been robust, with an 18.49% gain over the past three months, reflecting investor optimism. The company's valuation remains fair, and its profitability and growth metrics are strong. The presence of notable shareholders further underscores the stock's appeal. Compared to its competitors, FirstCash Holdings holds a strong market position, suggesting a positive outlook for the company's future performance.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
