(FAF) First American - Ratings and Ratios
Title Insurance, Escrow Services, Home Warranty, Risk
FAF EPS (Earnings per Share)
FAF Revenue
Description: FAF First American
First American Financial Corporation is a financial services company operating primarily in the title insurance and home warranty sectors. The companys Title Insurance and Services segment provides a comprehensive range of products and services related to real estate transactions, including title insurance policies, closing and escrow services, and risk mitigation solutions. This segment operates globally, with a presence in multiple countries, including the United States, Canada, the United Kingdom, Australia, New Zealand, and South Korea.
The companys Home Warranty segment offers residential service contracts that cover various household systems and appliances against failures. With a history dating back to 1889, First American Financial Corporation has established itself as a significant player in the financial services industry, with a diverse range of products and services that cater to the needs of homebuyers, sellers, and real estate professionals.
From a performance perspective, key metrics to consider include the companys revenue growth, profitability margins, and return on equity (ROE). With a current ROE of 3.20%, the company may be underperforming compared to its peers. However, its forward P/E ratio of 9.38 suggests that the market expects significant earnings growth in the future. Other key performance indicators (KPIs) to monitor include the companys loss ratio, expense ratio, and combined ratio, which can provide insights into its underwriting performance and operational efficiency.
In terms of its business model, First American Financial Corporations reliance on the title insurance and home warranty markets makes it vulnerable to fluctuations in the real estate market. As such, its essential to monitor housing market trends, interest rates, and regulatory changes that may impact the companys operations. The companys global presence and diversified product offerings, however, provide a degree of resilience against market volatility.
FAF Stock Overview
| Market Cap in USD | 6,779m |
| Sub-Industry | Property & Casualty Insurance |
| IPO / Inception | 2010-05-28 |
FAF Stock Ratings
| Growth Rating | 32.6% |
| Fundamental | 38.7% |
| Dividend Rating | 71.1% |
| Return 12m vs S&P 500 | -9.66% |
| Analyst Rating | 4.25 of 5 |
FAF Dividends
| Dividend Yield 12m | 4.18% |
| Yield on Cost 5y | 6.01% |
| Annual Growth 5y | 3.75% |
| Payout Consistency | 100.0% |
| Payout Ratio | 42.7% |
FAF Growth Ratios
| Growth Correlation 3m | 79.3% |
| Growth Correlation 12m | -23.3% |
| Growth Correlation 5y | 44.7% |
| CAGR 5y | 13.97% |
| CAGR/Max DD 3y | 0.63 |
| CAGR/Mean DD 3y | 1.59 |
| Sharpe Ratio 12m | 0.69 |
| Alpha | -13.46 |
| Beta | 0.979 |
| Volatility | 26.57% |
| Current Volume | 405.3k |
| Average Volume 20d | 509.2k |
| Stop Loss | 65.4 (-3.1%) |
| Signal | -0.16 |
Piotroski VR‑10 (Strict, 0-10) 2.5
| Net Income (188.7m TTM) > 0 and > 6% of Revenue (6% = 289.0m TTM) |
| FCFTA 0.04 (>2.0%) and ΔFCFTA 2.24pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 35.95% (prev 24.23%; Δ 11.72pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.05 (>3.0%) and CFO 870.5m > Net Income 188.7m (YES >=105%, WARN >=100%) |
| NO Net Debt/EBITDA fails (EBITDA <= 0) |
| Current Ratio 6.78 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (104.0m) change vs 12m ago -0.29% (target <= -2.0% for YES) |
| Gross Margin 38.55% (prev 72.68%; Δ -34.12pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 30.65% (prev 39.24%; Δ -8.59pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -8.09 (EBITDA TTM -1.13b / Interest Expense TTM 153.1m) >= 6 (WARN >= 3) |
Altman Z'' 1.23
| (A) 0.11 = (Total Current Assets 2.03b - Total Current Liabilities 299.6m) / Total Assets 16.27b |
| (B) 0.23 = Retained Earnings (Balance) 3.72b / Total Assets 16.27b |
| (C) -0.08 = EBIT TTM -1.24b / Avg Total Assets 15.72b |
| (D) 0.30 = Book Value of Equity 3.38b / Total Liabilities 11.12b |
| Total Rating: 1.23 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 38.73
| 1. Piotroski 2.50pt = -2.50 |
| 2. FCF Yield 9.28% = 4.64 |
| 3. FCF Margin 13.84% = 3.46 |
| 4. Debt/Equity 0.47 = 2.39 |
| 5. Debt/Ebitda -2.15 = -2.50 |
| 6. ROIC - WACC -24.95% = -12.50 |
| 7. RoE 3.75% = 0.31 |
| 8. Rev. Trend -51.00% = -2.55 |
| 9. Rev. CAGR -59.64% = -2.50 |
| 10. EPS Trend 19.10% = 0.48 |
| 11. EPS CAGR 0.0% = 0.0 |
What is the price of FAF shares?
Over the past week, the price has changed by +0.67%, over one month by +4.75%, over three months by +12.95% and over the past year by +7.55%.
Is First American a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of FAF is around 66.52 USD . This means that FAF is currently overvalued and has a potential downside of -1.47%.
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 | 77 | 14.1% |
| Analysts Target Price | 77 | 14.1% |
| ValueRay Target Price | 73.5 | 8.8% |
Last update: 2025-08-30 04:40
FAF Fundamental Data Overview
CCE Cash And Equivalents = 2.03b USD (last quarter)
P/E Trailing = 35.9451
P/E Forward = 9.3809
P/S = 1.0405
P/B = 1.3224
P/EG = 2.04
Beta = 1.256
Revenue TTM = 4.82b USD
EBIT TTM = -1.24b USD
EBITDA TTM = -1.13b USD
Long Term Debt = 2.43b USD (from longTermDebt, last quarter)
Short Term Debt = unknown (0.0)
Debt = 2.43b USD (Calculated: Short Term 0.0 + Long Term 2.43b)
Net Debt = -261.7m USD (from netDebt column, last quarter)
Enterprise Value = 7.18b USD (6.78b + Debt 2.43b - CCE 2.03b)
Interest Coverage Ratio = -8.09 (Ebit TTM -1.24b / Interest Expense TTM 153.1m)
FCF Yield = 9.28% (FCF TTM 666.5m / Enterprise Value 7.18b)
FCF Margin = 13.84% (FCF TTM 666.5m / Revenue TTM 4.82b)
Net Margin = 3.92% (Net Income TTM 188.7m / Revenue TTM 4.82b)
Gross Margin = 38.55% ((Revenue TTM 4.82b - Cost of Revenue TTM 2.96b) / Revenue TTM)
Tobins Q-Ratio = 2.12 (Enterprise Value 7.18b / Book Value Of Equity 3.38b)
Interest Expense / Debt = 1.56% (Interest Expense 38.0m / Debt 2.43b)
Taxrate = 19.83% (32.8m / 165.4m)
NOPAT = -1.24b (EBIT -1.24b, no tax applied on loss)
Current Ratio = 6.78 (Total Current Assets 2.03b / Total Current Liabilities 299.6m)
Debt / Equity = 0.47 (Debt 2.43b / last Quarter total Stockholder Equity 5.13b)
Debt / EBITDA = -2.15 (Net Debt -261.7m / EBITDA -1.13b)
Debt / FCF = 3.65 (Debt 2.43b / FCF TTM 666.5m)
Total Stockholder Equity = 5.04b (last 4 quarters mean)
RoA = 1.16% (Net Income 188.7m, Total Assets 16.27b )
RoE = 3.75% (Net Income TTM 188.7m / Total Stockholder Equity 5.04b)
RoCE = -16.58% (Ebit -1.24b / (Equity 5.04b + L.T.Debt 2.43b))
RoIC = -17.54% (NOPAT -1.24b / Invested Capital 7.06b)
WACC = 7.41% (E(6.78b)/V(9.21b) * Re(9.62%)) + (D(2.43b)/V(9.21b) * Rd(1.56%) * (1-Tc(0.20)))
Shares Correlation 3-Years: -78.16 | Cagr: -0.13%
Discount Rate = 9.62% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 63.98% ; FCFE base≈512.4m ; Y1≈340.4m ; Y5≈159.4m
Fair Price DCF = 24.05 (DCF Value 2.45b / Shares Outstanding 101.8m; 5y FCF grow -39.14% → 3.0% )
Revenue Correlation: -51.00 | Revenue CAGR: -59.64%
Rev Growth-of-Growth: -39.61
EPS Correlation: 19.10 | EPS CAGR: 0.0%
EPS Growth-of-Growth: 97.55
Additional Sources for FAF Stock
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Fund Manager Positions: Dataroma | Stockcircle