The tough times continue for First Cash Financial (NASDAQ:FCFS).
While the stock has recovered much of its post-earnings freak-out, the
fact remains that estimates are now about 17% lower for 2016 and 12%
lower for 2017 and the company continues to struggle with adverse
currency movements and weak core demand in its U.S. operations. What's
worse, there's not a lot of obvious steps for the company to take to
combat these issues.
Given the likelihood of a
weaker-for-longer U.S. operation and ongoing currency pressures, I've
trimmed back my expectation for the next three years. That has pushed my
fair value down to about $42, and that is still predicated on low
double-digit long-term annualized free cash flow growth. While the
currency situation could reverse and provide a much-needed boost, it's
going to take a while for First Cash to regain its footing.
Read the full article here:
First Cash Or 'First Peso' Financial?
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