5. First Cash Financial Services (FCFS) is a specialty retailer and provider of consumer financial services with a market cap exceeding $1 billion. The company operates pawn stores that engage in retail sales, purchase of used goods, and consumer finance.
The company's ROA was 23.55% for the last 12 months, while asset turnover ratio was 1.57. ROE and ROCE for the same period were 27.28% and 36.17%, respectively. The stock is trading at 16.25 times earnings, vs. the industry P/E of 21.66, according to data compiled by Bloomberg.
For 2011 third quarter, the company reported 25.7% increase in revenue to $133.3 million from $106 million in the prior-year period. Net income from continuing operations in the quarter was $18.3 million, rising 38% over the 2010 quarter. Diluted earnings per share grew to 59 cents from 43 cents in the year-ago quarter.The company added 21 pawn stores during the third quarter taking total store count to 667, of which 557 were pawn stores. In the last 12 months, the company opened and acquired 88 new stores. In October, FCFS signed an agreement to acquire a chain of five retail pawn stores located in Indianapolis, Ind., at a purchase price of $4 million. The company has increased its fiscal 2011 earnings per share guidance to be in the range of $2.23 to $2.25 from the previous estimate of $2.16 to $2.20 per share. Moreover, it estimates a 29% increase in new stores over total store additions for 2010. In December, the company announced the repurchase of up to 1.5 million shares of its common stock Of the 12 analysts covering the stock, 75% recommend a buy and 25% rate a hold. There are no sell ratings for the stock. Analysts polled by Bloomberg foresee the stock gaining an average 40% to $49.00 in the upcoming 12 months.
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