First Advantage (STU:0MS) ROE %: 5.24% (As of Jun. 2026) — 34% Above Median

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STU:0MS First Advantage Corp STU:0MS
59 GF Score
Price €18.00
GF Value €22.28
Valuation Modestly Undervalued
! 3 Warning Signs
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What is First Advantage ROE %?

First Advantage STU:0MS +2.86% 59 ROE % is 5.24% as of Jun. 2026, which is 34% above its 10-year median of 3.92. GuruFocus rates STU:0MS with a GF Score™ of 59/100 and a GF Value™ of €22.28 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,059 Business Services companies, First Advantage ranks worse than 71.29% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. First Advantage's annualized net income for the quarter that ended in Jun. 2026 was €59 Mil. First Advantage's average Total Stockholders Equity over the quarter that ended in Jun. 2026 was €1,121 Mil. Therefore, First Advantage's annualized ROE % for the quarter that ended in Jun. 2026 was 5.24%.

The historical rank and industry rank for First Advantage's ROE % or its related term are showing as below:

STU:0MS' s ROE % Range Over the Past 10 Years
Min: -9.96   Med: 3.92   Max: 17.72
Current: 1.93

During the past 13 years, First Advantage's highest ROE % was 17.72%. The lowest was -9.96%. And the median was 3.92%.

STU:0MS's ROE % is ranked worse than
71.29% of 1059 companies
in the Business Services industry
Industry Median: 8.26 vs STU:0MS: 1.93

First Advantage  (STU:0MS) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jun. 2026 )
=Net Income/Total Stockholders Equity
=58.724/1121.1375
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(58.724 / 1558.104)*(1558.104 / 3249.981)*(3249.981 / 1121.1375)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.77 %*0.4794*2.8988
=ROA %*Equity Multiplier
=1.81 %*2.8988
=5.24 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jun. 2026 )
=Net Income/Total Stockholders Equity
=58.724/1121.1375
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (58.724 / 86.996) * (86.996 / 197.984) * (197.984 / 1558.104) * (1558.104 / 3249.981) * (3249.981 / 1121.1375)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.675 * 0.4394 * 12.71 % * 0.4794 * 2.8988
=5.24 %

Note: The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


First Advantage ROE % Related Terms


First Advantage ROE % Historical Data

* Premium members only.

The historical data trend for First Advantage's ROE % 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.

First Advantage ROE % Chart

First Advantage Annual Data
Trend Dec06 Dec07 Dec08 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.72 5.91 3.61 -10.13 -2.51

First Advantage Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.09 0.79 1.06 0.67 5.24

STU:0MS vs MMS, ABM, CMPR: ROE % Comparison

For the Specialty Business Services subindustry, First Advantage's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Business Services Industry

For the Business Services industry and Industrials sector, First Advantage's ROE % distribution charts can be found below:

* The bar in red indicates where First Advantage's ROE % falls into.


STU:0MS
59GF Score
First Advantage Corp STU:0MS
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

First Advantage ROE % Calculation

First Advantage's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=-29.74/( (1248.222+1121.773)/ 2 )
=-29.74/1184.9975
=-2.51 %

First Advantage's annualized ROE % for the quarter that ended in Jun. 2026 is calculated as

ROE %=Net Income (Q: Jun. 2026 )/( (Total Stockholders Equity (Q: Mar. 2026 )+Total Stockholders Equity (Q: Jun. 2026 ))/ count )
=58.724/( (1119.123+1123.152)/ 2 )
=58.724/1121.1375
=5.24 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder 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. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 5.24% mean?
First Advantage (STU:0MS) has a ROE % of 5.24% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on First Advantage and its competitors. This is 34% above median its historical median of 3.92. According to the industry distribution chart, First Advantage ranks #755 out of 1059 companies in the Business Services industry, placing it in the top 71.3%.
Is First Advantage's ROE % too high?
First Advantage's current ROE % of 5.24% is 34% above median its 10-year median of 3.92. The Business Services industry median ROE % is 8.26. First Advantage's value of 5.24% is 36.6% below this industry median. Based on the distribution chart, First Advantage ranks #755 out of 1059 companies in the Business Services industry, which is below the industry midpoint. Overall, First Advantage has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does First Advantage's ROE % compare to MMS and ABM?
According to the Business Services industry distribution chart, First Advantage ranks #755 out of 1059 companies for ROE %. This places First Advantage in the lower half of its industry. The industry median ROE % is 8.26. First Advantage's value of 5.24% is 36.6% below this benchmark. While the company's 10-year median is 3.92 vs. the industry median of 8.26, 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 ROE % for a Business Services company?
The median ROE % among Business Services companies is 8.26, based on 1,059 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Advantage's current ROE % of 5.24% is 36.6% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on First Advantage and its competitors. For the Business Services industry, the median ROE % is 8.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Advantage's current ROE % is 5.24%, which is 34% above median its own 10-year median of 3.92. 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 (STU:0MS) is currently considered Modestly Undervalued. The stock's GF Value™ is €22.28, compared to a current price of €18.00 — trading 19.2% below its estimated fair value. The current ROE % is 5.24%, which is 34% above median its 10-year median of 3.92 and 36.6% below the Business Services industry median of 8.26. First Advantage's overall GF Score™ is 59/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For First Advantage (STU:0MS), the current ROE % is 5.24% 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 (STU:0MS) Overvalued in 2026?

Based on GuruFocus' analysis, First Advantage stock appears to be undervalued. The current stock price of €18.00 is trading 19.2% below its estimated GF Value™ of €22.28. GuruFocus considers First Advantage to be Modestly Undervalued.

Key valuation signals for STU:0MS:

  • ROE %: 5.24% (34% above median its 10-year median of 3.92)
  • GF Value™: €22.28 vs. price of €18.00 (19.2% below fair value)
  • GF Score™: 59/100 with 3 warning signs
  • Industry Position: 36.6% below the Business Services median (#755 of 1059)

No single metric tells the full story. See the STU:0MS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


First Advantage Business Description

Other Exchanges FA:USA
Address 1 Concourse Parkway NE, Suite 200, Atlanta, GA, USA, 30328
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.
59GF Score

Get the complete analysis for STU:0MS

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€18.00
Price
€22.28
GF Value