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First AdvantageFA +3.20%60 Net Margin % is 3.77% as of Jun. 2026, which is 23% below its 10-year median of 4.88. 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 1,071 Business Services companies, First Advantage ranks worse than 66.48% on this metric.
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
First Advantage Net Margin % Related Terms
First Advantage Net Margin % Historical Data
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The historical data trend for First Advantage's Net Margin % 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 Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, First Advantage's Net Margin % distribution charts can be found below:
* The bar in red indicates where First Advantage's Net Margin % 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 Net Margin % of 3.77% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on First Advantage and its competitors. This is 23% below median its historical median of 4.88. According to the industry distribution chart, First Advantage ranks #712 out of 1071 companies in the Business Services industry, placing it in the top 66.5%.
Is First Advantage's Net Margin % too high?
First Advantage's current Net Margin % of 3.77% is 23% below median its 10-year median of 4.88. The Business Services industry median Net Margin % is 4.00. First Advantage's value of 3.77% is 5.8% below this industry median. Based on the distribution chart, First Advantage ranks #712 out of 1071 companies in the Business Services industry, which is below the industry midpoint. 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 Net Margin % compare to MMS and ABM?
According to the Business Services industry distribution chart, First Advantage ranks #712 out of 1071 companies for Net Margin %. This places First Advantage in the lower half of its industry. The industry median Net Margin % is 4.00. First Advantage's value of 3.77% is 5.8% below this benchmark. While the company's 10-year median is 4.88 vs. the industry median of 4.00, First Advantage has consistently been below 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 Net Margin % for a Business Services company?
The median Net Margin % among Business Services companies is 4.00, based on 1,071 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Advantage's current Net Margin % of 3.77% is 5.8% below 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on First Advantage and its competitors. For the Business Services industry, the median Net Margin % is 4.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Advantage's current Net Margin % is 3.77%, which is 23% below median its own 10-year median of 4.88. 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 Net Margin % is 3.77%, which is 23% below median its 10-year median of 4.88 and 5.8% below the Business Services industry median of 4.00. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For First Advantage (FA), the current Net Margin % is 3.77% 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:
Net Margin %: 3.77% (23% below median its 10-year median of 4.88)
GF Value™: $25.33 vs. price of $20.97 (17.2% below fair value)
Industry Position: 5.8% below the Business Services median (#712 of 1071)
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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