FirstCash Inc.

The stable outlook reflects S&P Global Ratings' expectation that over the next 12 months, FirstCash Inc.'s debt to EBITDA will remain between 1.75x-2.5x, while the adjusted EBITDA margin will remain stable at close to 22%. We expect FirstCash to deploy the majority of its cash flows to fund further expansion opportunities and share repurchases without increasing leverage. We could lower the rating if large debt-funded initiatives, weaker-than-expected market conditions, or adverse regulatory changes result in deteriorating credit measures. Specifically, we could lower the rating if we expect debt to EBITDA to approach 3.0x because of lower-than-expected profitability or an increase of debt-funded spending. We could also lower the rating if operational issues or the business mix were to put pressure

...We expect leverage to be relatively stable at 1.75x to 2.5x debt to EBITDA. The company had higher-than-expected debt for 2018, mainly as a result of higher-than-expected share repurchases of over $270 million and acquisitions of over $100 million. Going forward, management has a publicly stated dividend and share repurchase target of 100% of net income compared to over 200% of net income for 2018. We expect the company to focus growth initiatives in its Latin America footprint. The company's acquisitions were mostly focused on growing business in Latin America, and we expect that to continue to be the case for the foreseeable future....

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