Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

First Cash Isn't Cheap, But The Growth Story Is Top-Shelf

Right off the bat, I'm not going to go to any great lengths to defend the valuation at First Cash Financial (NASDAQ:FCFS). These shares have outpaced the S&P over the past 12 months and trade at nearly 14 times trailing EBITDA. On the other hand, the company believes it can still grow its Mexican store footprint by 50%, while also taking advantage of high-quality consolidation opportunities in the U.S. Add in the potential to expand to markets like Colombia and Peru and I think you can argue that even though these shares aren't cheap, you are at least getting your money's worth and the company still has the potential to outperform.

This Hasn't Been A Great Year In...

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