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First AdvantageFA +3.20%60 Debt-to-Equity is 1.58 as of Jun. 2026, which is 155% above its 10-year median of 0.62. GuruFocus rates FA with a GF Score™ of 60/100 and a GF Value™ of $25.33 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 957 Business Services companies, First Advantage ranks worse than 84.85% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for First Advantage's Debt-to-Equity or its related term are showing as below:
FA'
s Debt-to-Equity Range Over the Past 10 Years
Min: -5.74 Med: 0.62 Max: 1.68
Current: 1.58
During the past 13 years, the highest Debt-to-Equity Ratio of First Advantage was 1.68. The lowest was -5.74. And the median was 0.62.
FA's Debt-to-Equity is ranked worse than 84.85% of 957
companies
in the Business Services industry
Industry Median: 0.33
vs FA: 1.58
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
First Advantage Debt-to-Equity Related Terms
First Advantage Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for First Advantage's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Business Services subindustry, First Advantage's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
First Advantage Debt-to-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, First Advantage's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where First Advantage's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
First Advantage (FA) has a Debt-to-Equity of 1.58 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on First Advantage and its competitors. This is 155% above median its historical median of 0.62. According to the industry distribution chart, First Advantage ranks #812 out of 957 companies in the Business Services industry, placing it in the top 84.8%.
Is First Advantage's Debt-to-Equity too high?
First Advantage's current Debt-to-Equity of 1.58 is 155% above median its 10-year median of 0.62. The Business Services industry median Debt-to-Equity is 0.33. First Advantage's value of 1.58 is 378.8% above this industry median. Based on the distribution chart, First Advantage ranks #812 out of 957 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, First Advantage has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does First Advantage's Debt-to-Equity compare to MMS and ABM?
According to the Business Services industry distribution chart, First Advantage ranks #812 out of 957 companies for Debt-to-Equity. This places First Advantage in the lower half of its industry. The industry median Debt-to-Equity is 0.33. First Advantage's value of 1.58 is 378.8% above this benchmark. While the company's 10-year median is 0.62 vs. the industry median of 0.33, First Advantage has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Business Services company?
The median Debt-to-Equity among Business Services companies is 0.33, based on 957 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Advantage's current Debt-to-Equity of 1.58 is 378.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on First Advantage and its competitors. For the Business Services industry, the median Debt-to-Equity is 0.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Advantage's current Debt-to-Equity is 1.58, which is 155% above median its own 10-year median of 0.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Advantage stock overvalued right now?
Based on GuruFocus' analysis, First Advantage (FA) is currently considered Modestly Undervalued. The stock's GF Value™ is $25.33, compared to a current price of $20.97 — trading 17.2% below its estimated fair value. The current Debt-to-Equity is 1.58, which is 155% above median its 10-year median of 0.62 and 378.8% above the Business Services industry median of 0.33. First Advantage's overall GF Score™ is 60/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For First Advantage (FA), the current Debt-to-Equity is 1.58 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is First Advantage (FA) Overvalued in 2026?
Based on GuruFocus' analysis, First Advantage stock appears to be undervalued.
The current stock price of $20.97 is trading 17.2% below its estimated GF Value™ of $25.33.
GuruFocus considers First Advantage to be Modestly Undervalued.
Key valuation signals for FA:
Debt-to-Equity: 1.58 (155% above median its 10-year median of 0.62)
GF Value™: $25.33 vs. price of $20.97 (17.2% below fair value)
Industry Position: 378.8% above the Business Services median (#812 of 957)
No single metric tells the full story. See the FA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Advantage Corp is a provider of software and data in the Human Resources technology industry. The company provides end-to-end identity solutions, criminal background screening, credential verifications, drug and health screening, and continuous risk monitoring. It combines AI-powered proprietary technology platforms with proprietary data, primary source data, and third-party data. Its reportable segments are First Advantage Americas, First Advantage International, and Sterling. The company generates maximum revenue from the Sterling segment, which provides similar services as compared to First Advantage's Americas and International segments on a global basis. Geographically, the company generates the majority of its revenue from the United States.
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