Saturday, July 18, 2015

Seeking Alpha: First Cash Financial Trying To Grind It Out

However bright First Cash Financial's (NASDAQ:FCFS) future may be, the here and now remains challenging. While the adverse moves in the Mexican peso are outside of the company's control and arguably not so significant long term (as the company doesn't rely on repatriating that cash), the ongoing weakness in the U.S. retail operations is a concern, as is the weakness in loan growth in Mexico.

Tempering my disappointment is the fact that I was already factoring a lot of this into my model. I'm looking for high single-digit long-term revenue growth and mid-teens free cash flow growth on the basis of growth potential in Mexico and consolidation in the U.S., but I'm expecting the next year or two to remain challenging. I continue to believe that fair value for these shares is in the high $50s, but the short-term moves are likely to be dominated by moves in the peso.

Read the full article here:
First Cash Financial Trying To Grind It Out

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