FIRST AMERICAN FINANCIAL (FAF) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:FAF • US31847R1023

67.34 USD
+0.25 (+0.37%)
At close: Feb 6, 2026
67.34 USD
0 (0%)
After Hours: 2/6/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Overall FAF gets a fundamental rating of 4 out of 10. We evaluated FAF against 149 industry peers in the Insurance industry. While FAF is still in line with the averages on profitability rating, there are concerns on its financial health. FAF has a correct valuation and a medium growth rate. Finally FAF also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • FAF had positive earnings in the past year.
  • FAF had a positive operating cash flow in the past year.
  • FAF had positive earnings in each of the past 5 years.
  • Each year in the past 5 years FAF had a positive operating cash flow.
FAF Yearly Net Income VS EBIT VS OCF VS FCFFAF Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.74%, FAF is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
  • The Return On Equity of FAF (9.10%) is comparable to the rest of the industry.
  • Looking at the Return On Invested Capital, with a value of 4.23%, FAF is in the better half of the industry, outperforming 70.07% of the companies in the same industry.
  • FAF had an Average Return On Invested Capital over the past 3 years of 2.91%. This is significantly below the industry average of 14.93%.
  • The 3 year average ROIC (2.91%) for FAF is below the current ROIC(4.23%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.74%
ROE 9.1%
ROIC 4.23%
ROA(3y)1.31%
ROA(5y)3.38%
ROE(3y)4.26%
ROE(5y)9.7%
ROIC(3y)2.91%
ROIC(5y)4.71%
FAF Yearly ROA, ROE, ROICFAF Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

  • The Profit Margin of FAF (6.80%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of FAF has declined.
  • Looking at the Operating Margin, with a value of 12.28%, FAF is in line with its industry, outperforming 46.94% of the companies in the same industry.
  • FAF's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 12.28%
PM (TTM) 6.8%
GM N/A
OM growth 3Y-31.37%
OM growth 5Y-18.17%
PM growth 3Y-46.08%
PM growth 5Y-28.45%
GM growth 3YN/A
GM growth 5YN/A
FAF Yearly Profit, Operating, Gross MarginsFAF Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FAF is destroying value.
  • FAF has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for FAF has been reduced compared to 5 years ago.
  • FAF has a worse debt/assets ratio than last year.
FAF Yearly Shares OutstandingFAF Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
FAF Yearly Total Debt VS Total AssetsFAF Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

  • The Debt to FCF ratio of FAF is 3.73, which is a good value as it means it would take FAF, 3.73 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of FAF (3.73) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.49 indicates that FAF is not too dependend on debt financing.
  • FAF's Debt to Equity ratio of 0.49 is on the low side compared to the rest of the industry. FAF is outperformed by 68.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 3.73
Altman-Z N/A
ROIC/WACC0.52
WACC8.15%
FAF Yearly LT Debt VS Equity VS FCFFAF Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
FAF Yearly Current Assets VS Current LiabilitesFAF Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 44.53% over the past year.
  • FAF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.20% yearly.
  • The Revenue has grown by 20.66% in the past year. This is a very strong growth!
  • The Revenue has been decreasing by -0.24% on average over the past years.
EPS 1Y (TTM)44.53%
EPS 3Y-18.68%
EPS 5Y-5.2%
EPS Q2Q%26.87%
Revenue 1Y (TTM)20.66%
Revenue growth 3Y-12.33%
Revenue growth 5Y-0.24%
Sales Q2Q%40.56%

3.2 Future

  • Based on estimates for the next years, FAF will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.83% on average per year.
  • Based on estimates for the next years, FAF will show a quite strong growth in Revenue. The Revenue will grow by 8.91% on average per year.
EPS Next Y25.78%
EPS Next 2Y17.46%
EPS Next 3Y14.47%
EPS Next 5Y13.83%
Revenue Next Year19.6%
Revenue Next 2Y13.12%
Revenue Next 3Y10.43%
Revenue Next 5Y8.91%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
FAF Yearly Revenue VS EstimatesFAF Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B
FAF Yearly EPS VS EstimatesFAF Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • FAF is valuated correctly with a Price/Earnings ratio of 12.42.
  • The rest of the industry has a similar Price/Earnings ratio as FAF.
  • FAF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.92.
  • FAF is valuated reasonably with a Price/Forward Earnings ratio of 11.07.
  • FAF's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.78, FAF is valued rather cheaply.
Industry RankSector Rank
PE 12.42
Fwd PE 11.07
FAF Price Earnings VS Forward Price EarningsFAF Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, FAF is valued a bit cheaper than the industry average as 70.75% of the companies are valued more expensively.
  • FAF's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 9.74
EV/EBITDA 6.05
FAF Per share dataFAF EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • FAF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as FAF's earnings are expected to grow with 14.47% in the coming years.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y17.46%
EPS Next 3Y14.47%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. Dividend

5.1 Amount

  • FAF has a Yearly Dividend Yield of 3.28%. Purely for dividend investing, there may be better candidates out there.
  • FAF's Dividend Yield is rather good when compared to the industry average which is at 2.28. FAF pays more dividend than 80.27% of the companies in the same industry.
  • FAF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 3.28%

5.2 History

  • The dividend of FAF has a limited annual growth rate of 4.86%.
  • FAF has paid a dividend for at least 10 years, which is a reliable track record.
  • FAF has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.86%
Div Incr Years14
Div Non Decr Years14
FAF Yearly Dividends per shareFAF Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • FAF pays out 46.13% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of FAF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP46.13%
EPS Next 2Y17.46%
EPS Next 3Y14.47%
FAF Yearly Income VS Free CF VS DividendFAF Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
FAF Dividend Payout.FAF Dividend Payout, showing the Payout Ratio.FAF Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

FIRST AMERICAN FINANCIAL

NYSE:FAF (2/6/2026, 8:04:00 PM)

After market: 67.34 0 (0%)

67.34

+0.25 (+0.37%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-22
Earnings (Next)02-11
Inst Owners94.69%
Inst Owner Change-2%
Ins Owners0.84%
Ins Owner Change-0.92%
Market Cap6.86B
Revenue(TTM)7.09B
Net Income(TTM)482.30M
Analysts75.56
Price Target78.34 (16.34%)
Short Float %2.73%
Short Ratio3.48
Dividend
Industry RankSector Rank
Dividend Yield 3.28%
Yearly Dividend2.14
Dividend Growth(5Y)4.86%
DP46.13%
Div Incr Years14
Div Non Decr Years14
Ex-Date03-09
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.55%
Min EPS beat(2)11.22%
Max EPS beat(2)15.88%
EPS beat(4)4
Avg EPS beat(4)17.75%
Min EPS beat(4)11.22%
Max EPS beat(4)22.01%
EPS beat(8)6
Avg EPS beat(8)7.43%
EPS beat(12)9
Avg EPS beat(12)5.4%
EPS beat(16)12
Avg EPS beat(16)7.01%
Revenue beat(2)2
Avg Revenue beat(2)4.47%
Min Revenue beat(2)3.85%
Max Revenue beat(2)5.09%
Revenue beat(4)4
Avg Revenue beat(4)3.73%
Min Revenue beat(4)2.41%
Max Revenue beat(4)5.09%
Revenue beat(8)4
Avg Revenue beat(8)0.33%
Revenue beat(12)6
Avg Revenue beat(12)0.08%
Revenue beat(16)8
Avg Revenue beat(16)1.59%
PT rev (1m)-0.78%
PT rev (3m)-2.42%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-3.43%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)5.16%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)-3.31%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.93%
Valuation
Industry RankSector Rank
PE 12.42
Fwd PE 11.07
P/S 0.97
P/FCF 9.74
P/OCF 7.57
P/B 1.29
P/tB 2.03
EV/EBITDA 6.05
EPS(TTM)5.42
EY8.05%
EPS(NY)6.08
Fwd EY9.04%
FCF(TTM)6.91
FCFY10.26%
OCF(TTM)8.89
OCFY13.2%
SpS69.55
BVpS52.02
TBVpS33.13
PEG (NY)0.48
PEG (5Y)N/A
Graham Number79.65
Profitability
Industry RankSector Rank
ROA 2.74%
ROE 9.1%
ROCE 5.34%
ROIC 4.23%
ROICexc 5.15%
ROICexgc 6.67%
OM 12.28%
PM (TTM) 6.8%
GM N/A
FCFM 9.94%
ROA(3y)1.31%
ROA(5y)3.38%
ROE(3y)4.26%
ROE(5y)9.7%
ROIC(3y)2.91%
ROIC(5y)4.71%
ROICexc(3y)3.38%
ROICexc(5y)5.29%
ROICexgc(3y)4.41%
ROICexgc(5y)6.78%
ROCE(3y)3.66%
ROCE(5y)5.93%
ROICexgc growth 3Y-35.82%
ROICexgc growth 5Y-22.59%
ROICexc growth 3Y-36.98%
ROICexc growth 5Y-22.98%
OM growth 3Y-31.37%
OM growth 5Y-18.17%
PM growth 3Y-46.08%
PM growth 5Y-28.45%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 3.73
Debt/EBITDA 2.42
Cap/Depr 95.1%
Cap/Sales 2.85%
Interest Coverage 5.58
Cash Conversion 83.71%
Profit Quality 146.01%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score8
WACC8.15%
ROIC/WACC0.52
Cap/Depr(3y)133.56%
Cap/Depr(5y)115.83%
Cap/Sales(3y)3.74%
Cap/Sales(5y)2.92%
Profit Quality(3y)252.58%
Profit Quality(5y)196.49%
High Growth Momentum
Growth
EPS 1Y (TTM)44.53%
EPS 3Y-18.68%
EPS 5Y-5.2%
EPS Q2Q%26.87%
EPS Next Y25.78%
EPS Next 2Y17.46%
EPS Next 3Y14.47%
EPS Next 5Y13.83%
Revenue 1Y (TTM)20.66%
Revenue growth 3Y-12.33%
Revenue growth 5Y-0.24%
Sales Q2Q%40.56%
Revenue Next Year19.6%
Revenue Next 2Y13.12%
Revenue Next 3Y10.43%
Revenue Next 5Y8.91%
EBIT growth 1Y213.21%
EBIT growth 3Y-39.83%
EBIT growth 5Y-18.36%
EBIT Next Year194.29%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y92.04%
FCF growth 3Y-13.76%
FCF growth 5Y-3.37%
OCF growth 1Y40.92%
OCF growth 3Y-9.73%
OCF growth 5Y-0.34%

FIRST AMERICAN FINANCIAL / FAF FAQ

What is the fundamental rating for FAF stock?

ChartMill assigns a fundamental rating of 4 / 10 to FAF.


What is the valuation status of FIRST AMERICAN FINANCIAL (FAF) stock?

ChartMill assigns a valuation rating of 5 / 10 to FIRST AMERICAN FINANCIAL (FAF). This can be considered as Fairly Valued.


Can you provide the profitability details for FIRST AMERICAN FINANCIAL?

FIRST AMERICAN FINANCIAL (FAF) has a profitability rating of 4 / 10.


Can you provide the expected EPS growth for FAF stock?

The Earnings per Share (EPS) of FIRST AMERICAN FINANCIAL (FAF) is expected to grow by 25.78% in the next year.


Can you provide the dividend sustainability for FAF stock?

The dividend rating of FIRST AMERICAN FINANCIAL (FAF) is 8 / 10 and the dividend payout ratio is 46.13%.