Operating Margin

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Price: 166.97 USD -2.91% Market Closed

Market Cap: $7.4B

15.4%

Improving

by 1.7%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

15.4%

Operating Income

$536.1m

Revenue

$3.5B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

15.4%

Operating Income

$536.1m

Revenue

$3.5B

Peer Comparison

Country	Company	Market Cap	Operating Margin
US	Firstcash Holdings Inc NASDAQ:FCFS	7.4B USD	Loading...
US	American Express Co NYSE:AXP	247.7B USD	Loading...
US	Capital One Financial Corp NYSE:COF	138.8B USD	Loading...
IN	Bajaj Finance Ltd NSE:BAJFINANCE	5.8T INR	Loading...
US	Discover Financial Services NYSE:DFS	50.3B USD	Loading...
US	SoFi Technologies Inc NASDAQ:SOFI	31.2B USD	Loading...
US	Synchrony Financial NYSE:SYF	28.3B USD	Loading...
IN	Shriram Finance Ltd NSE:SHRIRAMFIN	1.9T INR	Loading...
IN	Muthoot Finance Ltd NSE:MUTHOOTFIN	1.5T INR	Loading...
IN	Tata Capital Ltd NSE:TATACAP	1.4T INR	Loading...
IN	Cholamandalam Investment and Finance Company Ltd NSE:CHOLAFIN	1.4T INR	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Firstcash Holdings Inc
Glance View

Economic Moat

None

Market Cap

7.4B USD

Industry

Financial Services

FirstCash Holdings Inc. emerged as a formidable player in the financial services sector by specializing in pawn loans and related retail operations. Their journey began with a simple yet effective business model: extending short-term collateral-based loans, primarily to consumers underserved by traditional banking institutions. The essence of pawn transactions is straightforward: customers bring in personal items such as jewelry, electronics, or tools to secure a loan based on the perceived value of those items. Unlike typical lenders, FirstCash doesn't scrutinize credit scores; instead, they focus on the asset's worth. If the borrower repays the loan, their item is returned; if not, FirstCash can resell the item through their extensive retail network, ensuring that they maintain liquidity and revenue streams. This dual approach—lending and retail—creates a unique dynamic for FirstCash. Their stores, scattered across diverse markets in the United States and Latin America, serve as neighborhood hubs where financial needs meet consumer goods demand. When an item remains unsold, it's not just held as dormant inventory; it's positioned for resale at a competitive price, often attracting bargain hunters. This model not only diversifies their revenue channels but also offers a hedge against economic shifts. By operating in markets where access to traditional credit is often limited, FirstCash capitalizes on the growing need for flexible, accessible financial solutions. Their ability to adapt to regulatory changes and economic landscapes underscores a resilient, profit-driven approach that keeps them at the forefront of their industry.

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Firstcash Holdings Inc
NASDAQ:FCFS

Peer Comparison

Market Distribution

Other Profitability Ratios

Firstcash Holdings Inc
Glance View

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Firstcash Holdings Inc NASDAQ:FCFS