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First AdvantageFA +3.20%60 Return-on-Tangible-Equity is Negative Tangible Equity% as of Jun. 2026. 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 1,012 Business Services companies, First Advantage ranks better than 99.8% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. First Advantage's annualized net income for the quarter that ended in Jun. 2026 was $68 Mil. First Advantage's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $-1,646 Mil. Therefore, First Advantage's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for First Advantage's Return-on-Tangible-Equity or its related term are showing as below:
FA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 40.99 Med: 3020.87 Max: 6000.74
Current: Negative Tangible Equity
During the past 13 years, First Advantage's highest Return-on-Tangible-Equity was 6,000.74%. The lowest was 40.99%. And the median was 3,020.87%.
FA's Return-on-Tangible-Equity is ranked better than 99.8% of 1012
companies
in the Business Services industry
Industry Median: 10.99
vs FA: Negative Tangible Equity
First Advantage (NAS:FA) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
First Advantage Return-on-Tangible-Equity Related Terms
First Advantage Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for First Advantage's Return-on-Tangible-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.
FA vs MMS, ABM, CMPR: Return-on-Tangible-Equity Comparison
For the Specialty Business Services subindustry, First Advantage's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-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 Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, First Advantage's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where First Advantage's Return-on-Tangible-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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
First Advantage (FA) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on First Advantage and its competitors. Over the past decade, First Advantage's Return-on-Tangible-Equity has ranged from 40.99 to 6,000.74. According to the industry distribution chart, First Advantage ranks #2 out of 1012 companies in the Business Services industry, placing it in the top 0.2%.
Is First Advantage's Return-on-Tangible-Equity too high?
First Advantage's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 40.99 to a high of 6,000.74. Based on the distribution chart, First Advantage ranks #2 out of 1012 companies in the Business Services industry, which is in the top quartile — a strong position 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 Return-on-Tangible-Equity compare to MMS and ABM?
According to the Business Services industry distribution chart, First Advantage ranks #2 out of 1012 companies for Return-on-Tangible-Equity. This places First Advantage in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.99. Historically, First Advantage's own Return-on-Tangible-Equity has ranged from 40.99 to 6,000.74 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.99, based on 1,012 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on First Advantage and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Advantage's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For First Advantage (FA), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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.
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.
60GF Score
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