Thursday, February 11, 2016

Seeking Alpha: First Cash Or 'First Peso' Financial?

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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