Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pawn shop operator First Cash Financial Services (Nasdaq: FCFS ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at First Cash's business and see what CAPS investors are saying about the stock right now.
First Cash facts
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Headquarters (Founded)
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Arlington, Texas (1988)
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Market Cap
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$1.31 billion
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Industry
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Consumer finance
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Trailing-12-Month Revenue
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$457.33 million
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Management
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Chairman/CEO Rick Wessel
CFO R. Douglas Orr
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Return on Equity (Average, Past 3 Years)
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21%
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Cash/Debt
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$98.2 million / $1.7 million
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Competitors
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Cash America International (NYSE: CSH )
EZCORP (Nasdaq: EZPW )
World Acceptance (Nasdaq: WRLD )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 514 members who have rated First Cash believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars FoolSolo and TMFPlatoish, both of whom are ranked in the top 10% of our community.
Just last month, FoolSolo touched on First Cash's solid fundamentals: "The neat thing is they are funding their store acquisitions from operating cash flow, while paying down debt, so the business is literally funding all the expansion with cash. In summary, it is rare to find a company that is hitting on all cylinders like FCFS is."
Over the next five years, in fact, First Cash is expected to grow its bottom line at a brisk rate of 20% annually. That's faster than listed rivals Cash America (15%), EZCORP (15%), and World Acceptance (11%).
CAPS All-Star TMFPlatoish elaborates on the long-term opportunity:
I originally put a 1Y timeframe on First Cash to capitalize on the comeback I envisioned from the AutoMaster debacle. That went better than I expected. The company has also done a fine job of reducing its exposure to the payday loan industry in states where it could no longer run a profitable business, while continuing to expand its pawn store count and profitability, primarily in Mexico. I like this now as a long term investment and have changed the time frame to the maximum. I expect them to continue to strengthen their Balance Sheet, now that they are focused on their core competency.
What do you think about First Cash, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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