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FCFS: The Defensive King of Alternative Financial Services
Blank Capital Research Team
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Executive Summary
FirstCash Holdings, Inc. (FCFS) is the leading international operator of pawn stores, with over 2,900 locations across the U.S. and Latin America. It also operates a leading retail point-of-sale payment platform (American First Finance).
Investment Thesis
FirstCash is the ultimate counter-cyclical growth company. In an environment of persistent inflation and economic uncertainty, the demand for pawn loans and affordable retail financing is exploding. FCFS holds a dominant, high-margin position in this essential market. Their massive footprint in Mexico and Latin America provides a high-growth engine that is largely insulated from U.S. consumer trends. Furthermore, their integrated 'buy now, pay later' platform allows them to capture revenue across the full credit spectrum. With high returns on capital and a history of aggressive acquisitions, FCFS is a premier defensive compounder.
Key Growth Drivers
Counter-Cyclical Resilience
Pawn services typically see increased demand during economic downturns, providing a natural hedge for any portfolio during consumer recessions.
Latin American Growth Engine
Deep market penetration in the under-banked regions of Mexico and Central America drives consistent, high-margin organic growth for the firm.
Integrated Fintech Synergies
The addition of American First Finance allows FCFS to provide financing solutions to a broader customer base, driving higher-ticket retail sales and fee income.
Valuation & Financial Modeling
FCFS traditionally trades at a premium to standard retailers, reflecting its stable, bank-like earnings profile. Given its structural growth advantages in emerging markets, we believe the current valuation is attractive for a long-term compounder.
Risk Factors & Bear Case
Regulatory changes affecting pawn lending or retail finance in either the U.S. or Mexico are the primary risks. Additionally, currency devaluation in Latin America can occasionally lead to lumpy reported earnings.
Conclusion
FirstCash is a high-quality, high-safety financial services firm. It is an essential asset for investors seeking growth that is decoupled from the traditional tech and bank cycles. Rated 'Strong Buy'.
Upcoming Catalysts
No upcoming catalysts identified.
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Relative to Consumer Discretionary Sector Median (N=442)
Metric
FCFS
Benchmark
P/E Ratio
35.4x
+45%
EV/EBITDA
8.2x
+66%
Price / Book
3.7x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-55.0%
$90.69Spot: $201.63
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Discretionary sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.8%
Sector: 6.2%
Dividend Analysis audit
GROWTH
0.98%
Trailing Yield
$0.98
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
35%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, FirstCash Holdings, Inc. (FCFS) receives a "Hold" rating with a composite score of 49.2/100, ranked #210 out of 4446 stocks. Key factor scores: Quality 50/100, Value 29/100, Momentum 66/100. This is quantitative analysis only — not investment advice.
FirstCash Holdings, Inc. (FCFS) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does FirstCash Holdings, Inc. Do?
FirstCash Holdings, Inc, together with its subsidiaries, operates retail pawn stores in the United States, Mexico, and rest of Latin America. Its pawn stores lend money on the collateral of pledged personal property, including jewelry, electronics, tools, appliances, sporting goods, and musical instruments; and retails merchandise acquired through collateral forfeitures on forfeited pawn loans and over-the-counter purchases of merchandise directly from customers. The company is also involved in melting scrap jewelry, as well as sells gold, silver, and diamonds in commodity markets. As of December 31, 2021, it operated 1,081 stores in the United States and the District of Columbia; 1,656 stores in Mexico; 60 stores in Guatemala; 13 stores in El Salvador; and 15 stores in Colombia. The company was incorporated in 1988 and is headquartered in Fort Worth, Texas. FirstCash Holdings, Inc. (FCFS) is classified as a mid-cap stock in the Consumer Discretionary sector, specifically within the Retail industry. The company is led by CEO Rick L. Wessel and employs approximately 18,000 people, headquartered in Fort Worth, Texas. With a market capitalization of $8.4B, FCFS is one of the notable companies in the Consumer Discretionary sector.
FirstCash Holdings, Inc. (FCFS) Stock Rating — Hold (April 2026)
As of April 2026, FirstCash Holdings, Inc. receives a Hold rating with a composite score of 49.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FCFS ranks #210 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, FirstCash Holdings, Inc. ranks #9 of 442 stocks, placing it in the top 10% of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FCFS Stock Price and 52-Week Range
FirstCash Holdings, Inc. (FCFS) currently trades at $201.63. The stock gained $2.73 (1.4%) in the most recent trading session. The 52-week high for FCFS is $199.60, which means the stock is currently trading 1.0% from its annual peak. The 52-week low is $114.21, putting the stock 76.5% above its annual trough. Recent trading volume was 326K shares, suggesting relatively thin trading activity.
Is FCFS Overvalued or Undervalued? — Valuation Analysis
FirstCash Holdings, Inc. (FCFS) carries a value factor score of 29/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 35.44x, compared to the Consumer Discretionary sector average of 24.47x — a premium of 45%. The price-to-book ratio stands at 3.71x, versus the sector average of 1.99x. The price-to-sales ratio is 3.10x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, FCFS trades at 8.15x EV/EBITDA, versus 4.91x for the sector.
At current multiples, FirstCash Holdings, Inc. trades at a premium to most Consumer Discretionary peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
FirstCash Holdings, Inc. Profitability — ROE, Margins, and Quality Score
FirstCash Holdings, Inc. (FCFS) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 10.8%, compared to the Consumer Discretionary sector average of 6.2%, which is within a healthy range. Return on assets (ROA) comes in at 4.7% versus the sector average of 2.5%.
On a margin basis, FirstCash Holdings, Inc. reports gross margins of 50.2%, compared to 36.9% for the sector. The operating margin is 60.7% (sector: 3.8%). Net profit margin stands at 8.0%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at 26.6% on a trailing basis, compared to 3.3% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
FCFS Debt, Balance Sheet, and Financial Health
FirstCash Holdings, Inc. has a debt-to-equity ratio of 98.0%, compared to the Consumer Discretionary sector average of 89.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. Total debt on the balance sheet is $2.22B. Cash and equivalents stand at $125M.
FCFS has a beta of 0.26, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for FirstCash Holdings, Inc. is 84/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
FirstCash Holdings, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, FirstCash Holdings, Inc. reported revenue of $2.82B and earnings per share (EPS) of $2.35. Net income for the quarter was $247M. Gross margin was 50.2%. Operating income came in at $1.91B.
In Q4 2025, FirstCash Holdings, Inc. reported revenue of $1.06B. Net income for the quarter was $104M.
In FY 2025, FirstCash Holdings, Inc. reported revenue of $3.66B and earnings per share (EPS) of $7.46. Net income for the quarter was $330M. Gross margin was 50.3%. Operating income came in at $2.27B.
In Q3 2024, FirstCash Holdings, Inc. reported revenue of N/A and earnings per share (EPS) of $1.45. Operating income came in at $837M.
Over the past 8 quarters, FirstCash Holdings, Inc. has demonstrated a growth trajectory, with revenue expanding from $831M to $2.82B. Investors analyzing FCFS stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FCFS Dividend Yield and Income Analysis
FirstCash Holdings, Inc. (FCFS) currently pays a dividend yield of 1.0%. At this yield, a $10,000 investment in FCFS stock would generate approximately $$98.00 in annual dividend income. The net margin of 8.0% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
FCFS Momentum and Technical Analysis Profile
FirstCash Holdings, Inc. (FCFS) has a momentum factor score of 66/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 25/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
FCFS vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison
Comparing FCFS against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FCFS vs S&P 500 (SPY) comparison to assess how FirstCash Holdings, Inc. stacks up against the broader market across all factor dimensions.
FCFS Next Earnings Date
No upcoming earnings date has been announced for FirstCash Holdings, Inc. (FCFS) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FCFS? — Investment Thesis Summary
FirstCash Holdings, Inc. presents a balanced picture with arguments on both sides. The value score of 29/100 indicates premium valuation. Price momentum is positive at 66/100, suggesting the trend favors buyers. Low volatility (stability score 84/100) reduces downside risk.
In summary, FirstCash Holdings, Inc. (FCFS) earns a Hold rating with a composite score of 49.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FCFS stock.
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Execution Benchmarks audit
Revenue Growth
YOY expansion rate
26.6%
Sector: 3.3%
+706% VS SCTR
Gross Margin
Core pricing power
50.2%
Sector: 36.9%
+36% VS SCTR
Operating Margin
Operating efficiency
60.7%
Sector: 3.8%
+1515% VS SCTR
Net Margin
Bottom-line conversion
8.0%
Sector: 2.1%
+279% VS SCTR
Return on Equity
Equity capital efficiency
10.8%
Sector: 6.2%
+74% VS SCTR
Return on Assets
Asset base utilization
4.7%
Sector: 2.5%
+88% VS SCTR
Debt/Equity
Financial leverage load
98.0%
Sector: 89.0%
-10% VS SCTR
Dividend Yield
Direct cash return
1.0%
Sector: 0.0%
+Infinity% VS SCTR
+87%
Price / Sales
3.1x
+1048%
FirstCash Holdings, Inc. exhibits a 312% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
4.7%
Sector: 2.5%
Gross Margin
Pricing power and cost efficiency
50.2%
Sector: 36.9%
Operating Margin
Core business profitability
60.7%
Sector: 3.8%
Net Margin
Bottom-line profitability
8.0%
Sector: 2.1%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $98 annually in dividends at the current trailing rate.