FIRST AMERICAN FINANCIAL (FAF) Fundamental Analysis & Valuation

NYSE:FAF • US31847R1023

Current stock price

66.35 USD
+0.35 (+0.53%)
At close:
66.35 USD
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This FAF fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. FAF Profitability Analysis

1.1 Basic Checks

  • In the past year FAF was profitable.
  • FAF had a positive operating cash flow in the past year.
  • In the past 5 years FAF has always been profitable.
  • 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 2025 500M 1B 1.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.83%, FAF is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
  • FAF has a Return On Equity (11.31%) which is comparable to the rest of the industry.
  • FAF has a Return On Invested Capital of 5.23%. This is in the better half of the industry: FAF outperforms 74.15% of its industry peers.
  • FAF had an Average Return On Invested Capital over the past 3 years of 3.16%. This is significantly below the industry average of 9.51%.
  • The last Return On Invested Capital (5.23%) for FAF is above the 3 year average (3.16%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.83%
ROE 11.31%
ROIC 5.23%
ROA(3y)2%
ROA(5y)3.06%
ROE(3y)6.15%
ROE(5y)9.12%
ROIC(3y)3.16%
ROIC(5y)4.27%
FAF Yearly ROA, ROE, ROICFAF Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • With a Profit Margin value of 8.34%, FAF perfoms like the industry average, outperforming 49.66% of the companies in the same industry.
  • In the last couple of years the Profit Margin of FAF has declined.
  • The Operating Margin of FAF (13.49%) is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of FAF has declined.
Industry RankSector Rank
OM 13.49%
PM (TTM) 8.34%
GM N/A
OM growth 3Y12.4%
OM growth 5Y-2%
PM growth 3Y35.97%
PM growth 5Y-3.22%
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 2025 5 10 15

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2

2. FAF Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FAF is destroying value.
  • Compared to 1 year ago, FAF has less shares outstanding
  • Compared to 5 years ago, FAF has less shares outstanding
  • 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 2025 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 2025 5B 10B 15B

2.2 Solvency

  • The Debt to FCF ratio of FAF is 3.22, which is a good value as it means it would take FAF, 3.22 years of fcf income to pay off all of its debts.
  • FAF has a Debt to FCF ratio of 3.22. This is comparable to the rest of the industry: FAF outperforms 42.18% of its industry peers.
  • FAF has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
  • FAF has a worse Debt to Equity ratio (0.45) than 65.99% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 3.22
Altman-Z N/A
ROIC/WACC0.66
WACC7.93%
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 2025 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 2025 200M 400M 600M

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

6

3. FAF Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 37.41% over the past year.
  • Measured over the past 5 years, FAF shows a small growth in Earnings Per Share. The EPS has been growing by 1.85% on average per year.
  • FAF shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.57%.
  • Measured over the past years, FAF shows a small growth in Revenue. The Revenue has been growing by 1.01% on average per year.
EPS 1Y (TTM)37.41%
EPS 3Y-0.27%
EPS 5Y1.85%
EPS Q2Q%47.41%
Revenue 1Y (TTM)21.57%
Revenue growth 3Y-2.02%
Revenue growth 5Y1.01%
Sales Q2Q%18.44%

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 8.60% on average per year.
  • Based on estimates for the next years, FAF will show a small growth in Revenue. The Revenue will grow by 6.27% on average per year.
EPS Next Y8.33%
EPS Next 2Y8.44%
EPS Next 3Y8.6%
EPS Next 5YN/A
Revenue Next Year10.17%
Revenue Next 2Y7.85%
Revenue Next 3Y6.27%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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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5

4. FAF Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.95, the valuation of FAF can be described as reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of FAF is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 27.95, FAF is valued rather cheaply.
  • The Price/Forward Earnings ratio is 10.11, which indicates a very decent valuation of FAF.
  • FAF's Price/Forward Earnings ratio is in line with the industry average.
  • FAF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.68.
Industry RankSector Rank
PE 10.95
Fwd PE 10.11
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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of FAF is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 8.9
EV/EBITDA 6.43
FAF Per share dataFAF EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.31
PEG (5Y)5.93
EPS Next 2Y8.44%
EPS Next 3Y8.6%

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

8

5. FAF Dividend Analysis

5.1 Amount

  • FAF has a Yearly Dividend Yield of 3.45%. Purely for dividend investing, there may be better candidates out there.
  • FAF's Dividend Yield is a higher than the industry average which is at 2.37.
  • FAF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 3.45%

5.2 History

  • The dividend of FAF has a limited annual growth rate of 3.98%.
  • FAF has been paying a dividend for at least 10 years, so it has a reliable track record.
  • FAF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.98%
Div Incr Years15
Div Non Decr Years15
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 35.86% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of FAF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.86%
EPS Next 2Y8.44%
EPS Next 3Y8.6%
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 2025 200M 400M 600M 800M 1B
FAF Dividend Payout.FAF Dividend Payout, showing the Payout Ratio.FAF Dividend Payout.PayoutRetained Earnings

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FAF Fundamentals: All Metrics, Ratios and Statistics

FIRST AMERICAN FINANCIAL

NYSE:FAF (4/20/2026, 8:04:00 PM)

After market: 66.35 0 (0%)

66.35

+0.35 (+0.53%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-11
Earnings (Next)04-22
Inst Owners95.85%
Inst Owner Change-0.02%
Ins Owners0.88%
Ins Owner Change7.42%
Market Cap6.79B
Revenue(TTM)7.45B
Net Income(TTM)621.80M
Analysts80
Price Target83.64 (26.06%)
Short Float %3.92%
Short Ratio3.49
Dividend
Industry RankSector Rank
Dividend Yield 3.45%
Yearly Dividend2.18
Dividend Growth(5Y)3.98%
DP35.86%
Div Incr Years15
Div Non Decr Years15
Ex-Date03-09
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.64%
Min EPS beat(2)15.88%
Max EPS beat(2)37.4%
EPS beat(4)4
Avg EPS beat(4)21.63%
Min EPS beat(4)11.22%
Max EPS beat(4)37.4%
EPS beat(8)7
Avg EPS beat(8)13.58%
EPS beat(12)9
Avg EPS beat(12)8.42%
EPS beat(16)12
Avg EPS beat(16)7.68%
Revenue beat(2)2
Avg Revenue beat(2)7.01%
Min Revenue beat(2)5.09%
Max Revenue beat(2)8.92%
Revenue beat(4)4
Avg Revenue beat(4)5.07%
Min Revenue beat(4)2.41%
Max Revenue beat(4)8.92%
Revenue beat(8)5
Avg Revenue beat(8)1.91%
Revenue beat(12)7
Avg Revenue beat(12)1.4%
Revenue beat(16)8
Avg Revenue beat(16)0.74%
PT rev (1m)3.27%
PT rev (3m)7.05%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)-10.85%
EPS NY rev (1m)1.33%
EPS NY rev (3m)6.52%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)2.55%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)2.85%
Valuation
Industry RankSector Rank
PE 10.95
Fwd PE 10.11
P/S 0.91
P/FCF 8.9
P/OCF 7.14
P/B 1.23
P/tB 1.9
EV/EBITDA 6.43
EPS(TTM)6.06
EY9.13%
EPS(NY)6.57
Fwd EY9.89%
FCF(TTM)7.45
FCFY11.23%
OCF(TTM)9.29
OCFY14.01%
SpS72.85
BVpS53.76
TBVpS35
PEG (NY)1.31
PEG (5Y)5.93
Graham Number85.6153 (29.04%)
Profitability
Industry RankSector Rank
ROA 3.83%
ROE 11.31%
ROCE 6.72%
ROIC 5.23%
ROICexc 5.77%
ROICexgc 7.45%
OM 13.49%
PM (TTM) 8.34%
GM N/A
FCFM 10.23%
ROA(3y)2%
ROA(5y)3.06%
ROE(3y)6.15%
ROE(5y)9.12%
ROIC(3y)3.16%
ROIC(5y)4.27%
ROICexc(3y)3.66%
ROICexc(5y)4.78%
ROICexgc(3y)4.73%
ROICexgc(5y)6.1%
ROCE(3y)4.05%
ROCE(5y)5.48%
ROICexgc growth 3Y6.59%
ROICexgc growth 5Y-6.56%
ROICexc growth 3Y7.18%
ROICexc growth 5Y-6.3%
OM growth 3Y12.4%
OM growth 5Y-2%
PM growth 3Y35.97%
PM growth 5Y-3.22%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 3.22
Debt/EBITDA 2.01
Cap/Depr 87.1%
Cap/Sales 2.53%
Interest Coverage 6.62
Cash Conversion 77.86%
Profit Quality 122.63%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score8
WACC7.93%
ROIC/WACC0.66
Cap/Depr(3y)110.7%
Cap/Depr(5y)117.94%
Cap/Sales(3y)3.49%
Cap/Sales(5y)3.11%
Profit Quality(3y)227.55%
Profit Quality(5y)193.14%
High Growth Momentum
Growth
EPS 1Y (TTM)37.41%
EPS 3Y-0.27%
EPS 5Y1.85%
EPS Q2Q%47.41%
EPS Next Y8.33%
EPS Next 2Y8.44%
EPS Next 3Y8.6%
EPS Next 5YN/A
Revenue 1Y (TTM)21.57%
Revenue growth 3Y-2.02%
Revenue growth 5Y1.01%
Sales Q2Q%18.44%
Revenue Next Year10.17%
Revenue Next 2Y7.85%
Revenue Next 3Y6.27%
Revenue Next 5YN/A
EBIT growth 1Y184.86%
EBIT growth 3Y10.13%
EBIT growth 5Y-1.01%
EBIT Next Year35.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y12.26%
FCF growth 3Y13.61%
FCF growth 5Y-4.71%
OCF growth 1Y5.94%
OCF growth 3Y6.82%
OCF growth 5Y-2.6%

FIRST AMERICAN FINANCIAL / FAF Fundamental Analysis FAQ

What is the fundamental rating for FAF stock?

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


What is the valuation status for FAF stock?

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


What is the profitability of FAF stock?

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


What are the PE and PB ratios of FIRST AMERICAN FINANCIAL (FAF) stock?

The Price/Earnings (PE) ratio for FIRST AMERICAN FINANCIAL (FAF) is 10.95 and the Price/Book (PB) ratio is 1.23.


Can you provide the financial health for FAF stock?

The financial health rating of FIRST AMERICAN FINANCIAL (FAF) is 2 / 10.