Intrinsic value of FirstCash - FCFS

Previous Close

$66.30

  Intrinsic Value

$3.25

stock screener

  Rating & Target

str. sell

-95%

Previous close

$66.30

 
Intrinsic value

$3.25

 
Up/down potential

-95%

 
Rating

str. sell

Our model is not good at valuating stocks of financial companies, such as FCFS.

We calculate the intrinsic value of FCFS stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 3.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  54.33
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  1,088
  1,741
  2,690
  4,022
  5,836
  8,234
  11,320
  15,194
  19,951
  25,672
  32,426
  40,265
  49,228
  59,337
  70,599
  83,012
  96,563
  111,232
  126,996
  143,830
  161,707
  180,606
  200,505
  221,390
  243,251
  266,086
  289,896
  314,693
  340,492
  367,317
  395,199
Variable operating expenses, $m
 
  1,437
  2,175
  3,211
  4,621
  6,486
  8,885
  11,898
  15,597
  20,046
  25,298
  31,311
  38,281
  46,141
  54,899
  64,552
  75,089
  86,496
  98,755
  111,845
  125,747
  140,443
  155,917
  172,158
  189,157
  206,914
  225,430
  244,712
  264,774
  285,634
  307,315
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  977
  1,437
  2,175
  3,211
  4,621
  6,486
  8,885
  11,898
  15,597
  20,046
  25,298
  31,311
  38,281
  46,141
  54,899
  64,552
  75,089
  86,496
  98,755
  111,845
  125,747
  140,443
  155,917
  172,158
  189,157
  206,914
  225,430
  244,712
  264,774
  285,634
  307,315
Operating income, $m
  112
  304
  515
  811
  1,215
  1,748
  2,434
  3,296
  4,354
  5,626
  7,128
  8,954
  10,947
  13,195
  15,700
  18,460
  21,473
  24,736
  28,241
  31,985
  35,960
  40,163
  44,588
  49,232
  54,094
  59,172
  64,467
  69,981
  75,718
  81,684
  87,884
EBITDA, $m
  144
  402
  621
  929
  1,347
  1,901
  2,613
  3,508
  4,606
  5,926
  7,485
  9,295
  11,364
  13,698
  16,297
  19,163
  22,291
  25,677
  29,317
  33,203
  37,330
  41,692
  46,286
  51,107
  56,154
  61,425
  66,922
  72,646
  78,601
  84,794
  91,230
Interest expense (income), $m
  19
  24
  46
  78
  124
  185
  266
  371
  502
  663
  857
  1,085
  1,351
  1,654
  1,997
  2,378
  2,798
  3,257
  3,754
  4,288
  4,858
  5,463
  6,103
  6,777
  7,485
  8,225
  8,998
  9,804
  10,644
  11,518
  12,426
Earnings before tax, $m
  93
  280
  469
  733
  1,091
  1,563
  2,168
  2,925
  3,852
  4,963
  6,271
  7,869
  9,596
  11,541
  13,703
  16,082
  18,675
  21,478
  24,487
  27,697
  31,102
  34,699
  38,485
  42,455
  46,609
  50,947
  55,469
  60,177
  65,074
  70,166
  75,458
Tax expense, $m
  33
  76
  127
  198
  295
  422
  585
  790
  1,040
  1,340
  1,693
  2,125
  2,591
  3,116
  3,700
  4,342
  5,042
  5,799
  6,612
  7,478
  8,398
  9,369
  10,391
  11,463
  12,585
  13,756
  14,977
  16,248
  17,570
  18,945
  20,374
Net income, $m
  60
  204
  342
  535
  797
  1,141
  1,583
  2,135
  2,812
  3,623
  4,578
  5,744
  7,005
  8,425
  10,003
  11,740
  13,633
  15,679
  17,876
  20,219
  22,705
  25,331
  28,094
  30,992
  34,025
  37,191
  40,492
  43,929
  47,504
  51,221
  55,084

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  90
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  2,145
  3,291
  5,084
  7,603
  11,032
  15,565
  21,398
  28,722
  37,714
  48,529
  61,296
  76,116
  93,059
  112,167
  133,457
  156,922
  182,538
  210,268
  240,068
  271,890
  305,685
  341,410
  379,026
  418,507
  459,832
  502,998
  548,008
  594,882
  643,652
  694,362
  747,068
Adjusted assets (=assets-cash), $m
  2,055
  3,291
  5,084
  7,603
  11,032
  15,565
  21,398
  28,722
  37,714
  48,529
  61,296
  76,116
  93,059
  112,167
  133,457
  156,922
  182,538
  210,268
  240,068
  271,890
  305,685
  341,410
  379,026
  418,507
  459,832
  502,998
  548,008
  594,882
  643,652
  694,362
  747,068
Revenue / Adjusted assets
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
  0.529
Average production assets, $m
  229
  366
  565
  845
  1,226
  1,729
  2,377
  3,191
  4,190
  5,391
  6,809
  8,456
  10,338
  12,461
  14,826
  17,432
  20,278
  23,359
  26,669
  30,204
  33,959
  37,927
  42,106
  46,492
  51,083
  55,878
  60,878
  66,085
  71,503
  77,137
  82,992
Working capital, $m
  748
  870
  1,345
  2,011
  2,918
  4,117
  5,660
  7,597
  9,975
  12,836
  16,213
  20,133
  24,614
  29,668
  35,299
  41,506
  48,281
  55,616
  63,498
  71,915
  80,854
  90,303
  100,252
  110,695
  121,626
  133,043
  144,948
  157,346
  170,246
  183,659
  197,599
Total debt, $m
  457
  874
  1,480
  2,332
  3,491
  5,023
  6,995
  9,470
  12,509
  16,165
  20,480
  25,489
  31,216
  37,675
  44,871
  52,802
  61,460
  70,833
  80,905
  91,661
  103,084
  115,158
  127,873
  141,217
  155,185
  169,775
  184,989
  200,832
  217,316
  234,456
  252,271
Total liabilities, $m
  695
  1,112
  1,718
  2,570
  3,729
  5,261
  7,233
  9,708
  12,747
  16,403
  20,718
  25,727
  31,454
  37,913
  45,109
  53,040
  61,698
  71,071
  81,143
  91,899
  103,322
  115,396
  128,111
  141,455
  155,423
  170,013
  185,227
  201,070
  217,554
  234,694
  252,509
Total equity, $m
  1,450
  2,178
  3,366
  5,033
  7,303
  10,304
  14,165
  19,014
  24,967
  32,126
  40,578
  50,389
  61,605
  74,255
  88,349
  103,882
  120,840
  139,198
  158,925
  179,991
  202,364
  226,013
  250,915
  277,051
  304,409
  332,984
  362,781
  393,812
  426,098
  459,668
  494,559
Total liabilities and equity, $m
  2,145
  3,290
  5,084
  7,603
  11,032
  15,565
  21,398
  28,722
  37,714
  48,529
  61,296
  76,116
  93,059
  112,168
  133,458
  156,922
  182,538
  210,269
  240,068
  271,890
  305,686
  341,409
  379,026
  418,506
  459,832
  502,997
  548,008
  594,882
  643,652
  694,362
  747,068
Debt-to-equity ratio
  0.315
  0.400
  0.440
  0.460
  0.480
  0.490
  0.490
  0.500
  0.500
  0.500
  0.500
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
  0.510
Adjusted equity ratio
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662
  0.662

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  60
  204
  342
  535
  797
  1,141
  1,583
  2,135
  2,812
  3,623
  4,578
  5,744
  7,005
  8,425
  10,003
  11,740
  13,633
  15,679
  17,876
  20,219
  22,705
  25,331
  28,094
  30,992
  34,025
  37,191
  40,492
  43,929
  47,504
  51,221
  55,084
Depreciation, amort., depletion, $m
  32
  98
  106
  117
  133
  153
  179
  212
  252
  300
  358
  341
  417
  502
  598
  703
  818
  942
  1,075
  1,218
  1,369
  1,529
  1,698
  1,875
  2,060
  2,253
  2,455
  2,665
  2,883
  3,110
  3,346
Funds from operations, $m
  80
  302
  448
  652
  929
  1,294
  1,762
  2,347
  3,064
  3,923
  4,935
  6,085
  7,422
  8,927
  10,601
  12,443
  14,450
  16,621
  18,951
  21,437
  24,074
  26,860
  29,792
  32,867
  36,085
  39,444
  42,947
  46,594
  50,387
  54,331
  58,431
Change in working capital, $m
  -17
  326
  474
  666
  907
  1,199
  1,543
  1,937
  2,378
  2,861
  3,377
  3,920
  4,481
  5,054
  5,631
  6,206
  6,775
  7,335
  7,882
  8,417
  8,939
  9,449
  9,950
  10,443
  10,931
  11,417
  11,905
  12,398
  12,900
  13,413
  13,941
Cash from operations, $m
  97
  -24
  -26
  -14
  22
  95
  219
  410
  685
  1,063
  1,559
  2,165
  2,941
  3,873
  4,970
  6,236
  7,675
  9,286
  11,069
  13,020
  15,135
  17,411
  19,842
  22,424
  25,154
  28,027
  31,042
  34,195
  37,488
  40,919
  44,490
Maintenance CAPEX, $m
  0
  -9
  -15
  -23
  -34
  -49
  -70
  -96
  -129
  -169
  -217
  -275
  -341
  -417
  -502
  -598
  -703
  -818
  -942
  -1,075
  -1,218
  -1,369
  -1,529
  -1,698
  -1,875
  -2,060
  -2,253
  -2,455
  -2,665
  -2,883
  -3,110
New CAPEX, $m
  -34
  -137
  -199
  -280
  -381
  -504
  -648
  -814
  -999
  -1,201
  -1,418
  -1,646
  -1,882
  -2,123
  -2,365
  -2,607
  -2,846
  -3,081
  -3,311
  -3,535
  -3,754
  -3,969
  -4,179
  -4,386
  -4,591
  -4,795
  -5,000
  -5,207
  -5,418
  -5,633
  -5,855
Cash from investing activities, $m
  -26
  -146
  -214
  -303
  -415
  -553
  -718
  -910
  -1,128
  -1,370
  -1,635
  -1,921
  -2,223
  -2,540
  -2,867
  -3,205
  -3,549
  -3,899
  -4,253
  -4,610
  -4,972
  -5,338
  -5,708
  -6,084
  -6,466
  -6,855
  -7,253
  -7,662
  -8,083
  -8,516
  -8,965
Free cash flow, $m
  71
  -170
  -240
  -317
  -393
  -458
  -499
  -500
  -442
  -308
  -77
  244
  718
  1,333
  2,102
  3,032
  4,126
  5,388
  6,816
  8,409
  10,163
  12,073
  14,134
  16,341
  18,688
  21,172
  23,788
  26,533
  29,405
  32,402
  35,524
Issuance/(repayment) of debt, $m
  -37
  417
  606
  851
  1,159
  1,532
  1,972
  2,476
  3,039
  3,655
  4,315
  5,009
  5,727
  6,459
  7,196
  7,931
  8,658
  9,373
  10,072
  10,756
  11,423
  12,075
  12,714
  13,344
  13,968
  14,590
  15,214
  15,844
  16,484
  17,140
  17,815
Issuance/(repurchase) of shares, $m
  0
  614
  845
  1,133
  1,473
  1,860
  2,279
  2,713
  3,141
  3,537
  3,874
  4,067
  4,211
  4,225
  4,091
  3,794
  3,325
  2,678
  1,852
  847
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -39
  1,031
  1,451
  1,984
  2,632
  3,392
  4,251
  5,189
  6,180
  7,192
  8,189
  9,076
  9,938
  10,684
  11,287
  11,725
  11,983
  12,051
  11,924
  11,603
  11,423
  12,075
  12,714
  13,344
  13,968
  14,590
  15,214
  15,844
  16,484
  17,140
  17,815
Total cash flow (excl. dividends), $m
  23
  861
  1,211
  1,667
  2,239
  2,934
  3,752
  4,689
  5,738
  6,884
  8,112
  9,320
  10,655
  12,017
  13,389
  14,757
  16,110
  17,439
  18,741
  20,012
  21,586
  24,148
  26,848
  29,685
  32,657
  35,762
  39,002
  42,377
  45,889
  49,542
  53,339
Retained Cash Flow (-), $m
  -1,019
  -818
  -1,187
  -1,668
  -2,270
  -3,001
  -3,862
  -4,849
  -5,953
  -7,159
  -8,452
  -9,811
  -11,216
  -12,650
  -14,094
  -15,534
  -16,958
  -18,358
  -19,728
  -21,066
  -22,372
  -23,650
  -24,902
  -26,136
  -27,358
  -28,575
  -29,797
  -31,031
  -32,286
  -33,570
  -34,891
Prev. year cash balance distribution, $m
 
  90
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  133
  24
  0
  -30
  -67
  -110
  -159
  -215
  -275
  -340
  -491
  -561
  -633
  -705
  -777
  -848
  -918
  -987
  -1,054
  -787
  498
  1,946
  3,549
  5,299
  7,187
  9,205
  11,346
  13,604
  15,972
  18,448
Discount rate, %
 
  5.30
  5.57
  5.84
  6.14
  6.44
  6.76
  7.10
  7.46
  7.83
  8.22
  8.63
  9.06
  9.52
  9.99
  10.49
  11.02
  11.57
  12.15
  12.76
  13.39
  14.06
  14.77
  15.50
  16.28
  17.09
  17.95
  18.85
  19.79
  20.78
  21.82
PV of cash for distribution, $m
 
  126
  21
  0
  -24
  -49
  -74
  -99
  -121
  -140
  -154
  -197
  -198
  -194
  -186
  -174
  -159
  -143
  -125
  -108
  -64
  31
  94
  129
  142
  139
  126
  107
  87
  67
  50
Current shareholders' claim on cash, %
  100
  82.8
  70.3
  60.9
  53.7
  48.1
  43.7
  40.1
  37.3
  35.0
  33.2
  31.7
  30.6
  29.6
  28.9
  28.4
  27.9
  27.7
  27.5
  27.4
  27.4
  27.4
  27.4
  27.4
  27.4
  27.4
  27.4
  27.4
  27.4
  27.4
  27.4

FirstCash, Inc., formerly First Cash Financial Services, Inc., is an operator of retail-based pawn stores in the United States and Latin America. The Company's primary business is the operation of full-service pawn stores, which make small pawn loans secured by personal property, such as consumer electronics, jewelry, power tools, household appliances, sporting goods and musical instruments. The Company's operates through two segments: the U.S. operations segment and the Latin America operations segment. The U.S. operations segment consists of all pawn and consumer loan operations in the United States and the Latin America operations segment consists of all pawn and consumer loan operations in Latin America, which includes operations in Mexico, Guatemala and El Salvador. In addition, some of the Company's pawn stores offer small unsecured consumer loans or credit services products. The Company also operates consumer finance stores in Texas and Mexico.

FINANCIAL RATIOS  of  FirstCash (FCFS)

Valuation Ratios
P/E Ratio 53.6
Price to Sales 3
Price to Book 2.2
Price to Tangible Book
Price to Cash Flow 33.2
Price to Free Cash Flow 51.1
Growth Rates
Sales Growth Rate 54.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 61.9%
Cap. Spend. - 3 Yr. Gr. Rate 4.7%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 31.5%
Total Debt to Equity 31.5%
Interest Coverage 6
Management Effectiveness
Return On Assets 5%
Ret/ On Assets - 3 Yr. Avg. 9.4%
Return On Total Capital 4.6%
Ret/ On T. Cap. - 3 Yr. Avg. 9.1%
Return On Equity 6.4%
Return On Equity - 3 Yr. Avg. 13.5%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 55.6%
Gross Margin - 3 Yr. Avg. 55.8%
EBITDA Margin 13.2%
EBITDA Margin - 3 Yr. Avg. 16.9%
Operating Margin 10.2%
Oper. Margin - 3 Yr. Avg. 14.3%
Pre-Tax Margin 8.5%
Pre-Tax Margin - 3 Yr. Avg. 12.5%
Net Profit Margin 5.5%
Net Profit Margin - 3 Yr. Avg. 8.7%
Effective Tax Rate 35.5%
Eff/ Tax Rate - 3 Yr. Avg. 31.2%
Payout Ratio 33.3%

FCFS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FCFS stock intrinsic value calculation we used $1088 million for the last fiscal year's total revenue generated by FirstCash. The default revenue input number comes from 2016 income statement of FirstCash. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our FCFS stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 5.3%, whose default value for FCFS is calculated based on our internal credit rating of FirstCash, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of FirstCash.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of FCFS stock the variable cost ratio is equal to 85.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for FCFS stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.3% for FirstCash.

Corporate tax rate of 27% is the nominal tax rate for FirstCash. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the FCFS stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for FCFS are equal to 21%.

Life of production assets of 24.8 years is the average useful life of capital assets used in FirstCash operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for FCFS is equal to 50%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1450 million for FirstCash - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 47.69 million for FirstCash is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of FirstCash at the current share price and the inputted number of shares is $3.2 billion.

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COMPANY NEWS

▶ 3 Trades to Generate Monthly Income Selling Puts   [Nov-16-17 10:58AM  InvestorPlace]
▶ At $64.5, Is It Time To Sell FirstCash Inc (FCFS)?   [Nov-06-17 02:12PM  Simply Wall St.]
▶ First Cash Financial Services posts 3Q profit   [Oct-26-17 06:35AM  Associated Press]
▶ OneMain Shows Improved Relative Strength; Still Shy Of Benchmark   [Sep-18-17 03:00AM  Investor's Business Daily]
▶ OneMain Getting Closer To Key Technical Benchmark   [Sep-13-17 03:00AM  Investor's Business Daily]
▶ ETFs with exposure to FirstCash, Inc. : June 2, 2017   [Jun-02-17 02:07PM  Capital Cube]
▶ ETFs with exposure to FirstCash, Inc. : May 19, 2017   [May-19-17 01:53PM  Capital Cube]
▶ First Cash Financial Services posts 1Q profit   [Apr-27-17 06:32AM  Associated Press]
▶ ETFs with exposure to FirstCash, Inc. : April 7, 2017   [Apr-07-17 04:32PM  Capital Cube]
▶ Is FirstCash, Inc. (FCFS) Worthy of Your Portfolio?   [Dec-11-16 03:07PM  Insider Monkey]
▶ ETFs with exposure to FirstCash, Inc. : December 2, 2016   [Dec-02-16 10:45AM  Capital Cube]
▶ Jefferies Top Stocks to Buy May Have Market-Moving Catalysts   [Sep-29-16 10:35AM  at 24/7 Wall St.]
▶ When 2 Pawn Giants Become 1   [Aug-31-16 12:25PM  at 24/7 Wall St.]
Financial statements of FCFS
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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