(FAF) First American - Ratings and Ratios
Title Insurance, Escrow Services, Home Warranty, Valuation, Exchange Services
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 4.12% |
| Yield on Cost 5y | 6.68% |
| Yield CAGR 5y | 4.71% |
| Payout Consistency | 100.0% |
| Payout Ratio | 40.2% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 24.3% |
| Value at Risk 5%th | 39.2% |
| Relative Tail Risk | -2.10% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.09 |
| Alpha | -10.66 |
| CAGR/Max DD | 0.49 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.508 |
| Beta | 0.662 |
| Beta Downside | 0.732 |
| Drawdowns 3y | |
|---|---|
| Max DD | 22.13% |
| Mean DD | 8.77% |
| Median DD | 8.85% |
Description: FAF First American November 06, 2025
First American Financial Corporation (NYSE: FAF) delivers financial services through two primary segments: Title Insurance & Services and Home Warranty. The Title Insurance segment underwrites policies for residential and commercial properties, provides escrow and closing services, and offers ancillary products such as appraisal, lien-release, and document-custodial solutions. It also operates a global title-plant data network and extends services to Canada, the UK, Australia, New Zealand, South Korea, and other international markets.
The Home Warranty segment sells residential service contracts that cover major systems (e.g., HVAC) and appliances against normal-use failures. This business is concentrated in the United States, operating in most states and the District of Columbia.
Key metrics (FY 2023) show FAF generated roughly **$5.5 billion** in revenue, with the Title Insurance segment contributing about **85 %** of total sales. The combined ratio for the title business hovered near **96 %**, indicating modest underwriting profitability, while the Home Warranty segment posted an **adjusted EBITDA margin of ~12 %**. Both segments are highly sensitive to the health of the housing market-new-home starts, mortgage-rate trends, and home-age demographics drive transaction volume and warranty demand.
Sector-level drivers include the **U.S. housing-starts index**, which has been volatile amid tightening monetary policy, and **interest-rate expectations**, which affect mortgage-originations and, consequently, title-insurance volume. Additionally, the aging U.S. housing stock (average home age > 35 years) fuels growth in home-warranty subscriptions, especially in regions with higher home-ownership rates.
For a deeper quantitative assessment, explore FAF’s detailed financials and peer comparisons on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income (482.3m TTM) > 0 and > 6% of Revenue (6% = 424.8m TTM) |
| FCFTA 0.04 (>2.0%) and ΔFCFTA 2.11pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 36.09% (prev 26.46%; Δ 9.63pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.05 (>3.0%) and CFO 906.1m > Net Income 482.3m (YES >=105%, WARN >=100%) |
| Net Debt (-146.2m) to EBITDA (1.01b) ratio: -0.15 <= 3.0 (WARN <= 3.5) |
| Current Ratio 8.17 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (103.8m) change vs 12m ago 0.19% (target <= -2.0% for YES) |
| Gross Margin 63.01% (prev 72.23%; Δ -9.22pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 41.43% (prev 35.45%; Δ 5.99pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 5.07 (EBITDA TTM 1.01b / Interest Expense TTM 156.8m) >= 6 (WARN >= 3) |
Altman Z'' 2.28
| (A) 0.15 = (Total Current Assets 2.91b - Total Current Liabilities 356.4m) / Total Assets 17.61b |
| (B) 0.22 = Retained Earnings (Balance) 3.86b / Total Assets 17.61b |
| (C) 0.05 = EBIT TTM 795.5m / Avg Total Assets 17.09b |
| (D) 0.29 = Book Value of Equity 3.57b / Total Liabilities 12.28b |
| Total Rating: 2.28 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 62.37
| 1. Piotroski 5.0pt |
| 2. FCF Yield 11.26% |
| 3. FCF Margin 9.95% |
| 4. Debt/Equity 0.54 |
| 5. Debt/Ebitda -0.15 |
| 6. ROIC - WACC (= 2.45)% |
| 7. RoE 9.48% |
| 8. Rev. Trend -39.74% |
| 9. EPS Trend -16.86% |
What is the price of FAF shares?
Over the past week, the price has changed by +5.13%, over one month by +3.40%, over three months by +0.59% and over the past year by -1.31%.
Is FAF a buy, sell or hold?
- Strong Buy: 2
- Buy: 1
- Hold: 1
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the FAF price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 76.8 | 16.3% |
| Analysts Target Price | 76.8 | 16.3% |
| ValueRay Target Price | 71.3 | 7.9% |
FAF Fundamental Data Overview November 20, 2025
P/E Trailing = 13.5097
P/E Forward = 9.3809
P/S = 0.9032
P/B = 1.1924
P/EG = 2.04
Beta = 1.286
Revenue TTM = 7.08b USD
EBIT TTM = 795.5m USD
EBITDA TTM = 1.01b USD
Long Term Debt = 1.55b USD (from longTermDebt, last quarter)
Short Term Debt = 1.08b USD (from shortTermDebt, last quarter)
Debt = 2.85b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -146.2m USD (from netDebt column, last quarter)
Enterprise Value = 6.26b USD (6.40b + Debt 2.85b - CCE 2.99b)
Interest Coverage Ratio = 5.07 (Ebit TTM 795.5m / Interest Expense TTM 156.8m)
FCF Yield = 11.26% (FCF TTM 704.2m / Enterprise Value 6.26b)
FCF Margin = 9.95% (FCF TTM 704.2m / Revenue TTM 7.08b)
Net Margin = 6.81% (Net Income TTM 482.3m / Revenue TTM 7.08b)
Gross Margin = 63.01% ((Revenue TTM 7.08b - Cost of Revenue TTM 2.62b) / Revenue TTM)
Gross Margin QoQ = 63.07% (prev 64.41%)
Tobins Q-Ratio = 0.36 (Enterprise Value 6.26b / Total Assets 17.61b)
Interest Expense / Debt = 1.40% (Interest Expense 39.9m / Debt 2.85b)
Taxrate = 23.12% (57.1m / 247.0m)
NOPAT = 611.6m (EBIT 795.5m * (1 - 23.12%))
Current Ratio = 8.17 (Total Current Assets 2.91b / Total Current Liabilities 356.4m)
Debt / Equity = 0.54 (Debt 2.85b / totalStockholderEquity, last quarter 5.30b)
Debt / EBITDA = -0.15 (Net Debt -146.2m / EBITDA 1.01b)
Debt / FCF = -0.21 (Net Debt -146.2m / FCF TTM 704.2m)
Total Stockholder Equity = 5.09b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.74% (Net Income 482.3m / Total Assets 17.61b)
RoE = 9.48% (Net Income TTM 482.3m / Total Stockholder Equity 5.09b)
RoCE = 11.99% (EBIT 795.5m / Capital Employed (Equity 5.09b + L.T.Debt 1.55b))
RoIC = 8.63% (NOPAT 611.6m / Invested Capital 7.08b)
WACC = 6.19% (E(6.40b)/V(9.25b) * Re(8.46%) + D(2.85b)/V(9.25b) * Rd(1.40%) * (1-Tc(0.23)))
Discount Rate = 8.46% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -0.29%
[DCF Debug] Terminal Value 70.81% ; FCFE base≈547.8m ; Y1≈396.3m ; Y5≈220.1m
Fair Price DCF = 38.34 (DCF Value 3.91b / Shares Outstanding 101.9m; 5y FCF grow -32.58% → 3.0% )
EPS Correlation: -16.86 | EPS CAGR: -7.53% | SUE: 2.44 | # QB: 5
Revenue Correlation: -39.74 | Revenue CAGR: -4.73% | SUE: 1.72 | # QB: 1
Additional Sources for FAF Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle