FIDELITY NATIONAL FINANCIAL (FNF) Stock Fundamental Analysis
USA - NYSE:FNF - US31620R3030 - Common Stock
55.11 USD
+0.16 (+0.29%)
55.11 USD
0 (0%)
FNF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. There are concerns on the financial health of FNF while its profitability can be described as average. FNF is not valued too expensively and it also shows a decent growth rate. Finally FNF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FNF was profitable.
In the past year FNF had a positive cash flow from operations.
Each year in the past 5 years FNF has been profitable.
FNF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FNF has a Return On Assets (1.05%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 13.62%, FNF is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.30%, FNF is in line with its industry, outperforming 40.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FNF is below the industry average of 4.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 13.62% | ||
| ROIC | 1.3% |
ROA(3y)1.32%
ROA(5y)2.28%
ROE(3y)15.01%
ROE(5y)18.36%
ROIC(3y)1.58%
ROIC(5y)2.53%
1.3 Margins
FNF has a Profit Margin of 7.90%. This is comparable to the rest of the industry: FNF outperforms 54.42% of its industry peers.
In the last couple of years the Profit Margin of FNF has declined.
Looking at the Operating Margin, with a value of 12.32%, FNF is in line with its industry, outperforming 55.10% of the companies in the same industry.
In the last couple of years the Operating Margin of FNF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.32% | ||
| PM (TTM) | 7.9% | ||
| GM | N/A |
OM growth 3Y-15.37%
OM growth 5Y-3.18%
PM growth 3Y-19.69%
PM growth 5Y-5.88%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FNF is destroying value.
The number of shares outstanding for FNF has been increased compared to 1 year ago.
Compared to 5 years ago, FNF has less shares outstanding
FNF has a better debt/assets ratio than last year.
2.2 Solvency
FNF has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.65, FNF is in the better half of the industry, outperforming 78.23% of the companies in the same industry.
FNF has a Debt/Equity ratio of 0.56. This is a neutral value indicating FNF is somewhat dependend on debt financing.
FNF has a Debt to Equity ratio of 0.56. This is in the lower half of the industry: FNF underperforms 76.19% of its industry peers.
Although FNF does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC0.17
WACC7.64%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.08% over the past year.
The Earnings Per Share has been growing slightly by 6.42% on average over the past years.
FNF shows a small growth in Revenue. In the last year, the Revenue has grown by 7.30%.
FNF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.12% yearly.
EPS 1Y (TTM)15.08%
EPS 3Y-16.25%
EPS 5Y6.42%
EPS Q2Q%-6.45%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y-4.29%
Revenue growth 5Y10.12%
Sales Q2Q%15.1%
3.2 Future
Based on estimates for the next years, FNF will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.34% on average per year.
FNF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.03% yearly.
EPS Next Y5.19%
EPS Next 2Y18.06%
EPS Next 3Y15.34%
EPS Next 5YN/A
Revenue Next Year3.88%
Revenue Next 2Y7.37%
Revenue Next 3Y7.03%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.03 indicates a correct valuation of FNF.
FNF's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.19, FNF is valued rather cheaply.
The Price/Forward Earnings ratio is 8.52, which indicates a very decent valuation of FNF.
Based on the Price/Forward Earnings ratio, FNF is valued a bit cheaper than the industry average as 65.99% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, FNF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 8.52 |
4.2 Price Multiples
FNF's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FNF is more expensive than 60.54% of the companies in the same industry.
FNF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FNF is cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.23 | ||
| EV/EBITDA | 14.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FNF's earnings are expected to grow with 15.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.32
PEG (5Y)1.88
EPS Next 2Y18.06%
EPS Next 3Y15.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.52%, FNF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.28, FNF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, FNF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
5.2 History
On average, the dividend of FNF grows each year by 9.22%, which is quite nice.
FNF has paid a dividend for at least 10 years, which is a reliable track record.
FNF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.22%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
50.32% of the earnings are spent on dividend by FNF. This is a bit on the high side, but may be sustainable.
FNF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.32%
EPS Next 2Y18.06%
EPS Next 3Y15.34%
55.11
+0.16 (+0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.05%
Inst Owner Change-0.09%
Ins Owners5.51%
Ins Owner Change-0.1%
Market Cap14.97B
Revenue(TTM)13.63B
Net Income(TTM)1.08B
Analysts77.5
Price Target71.66 (30.03%)
Short Float %1.28%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend1.94
Dividend Growth(5Y)9.22%
DP50.32%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.4%
Min EPS beat(2)-29.93%
Max EPS beat(2)-12.86%
EPS beat(4)2
Avg EPS beat(4)-8.95%
Min EPS beat(4)-29.93%
Max EPS beat(4)6.85%
EPS beat(8)3
Avg EPS beat(8)-9.06%
EPS beat(12)3
Avg EPS beat(12)-12.16%
EPS beat(16)7
Avg EPS beat(16)-4.01%
Revenue beat(2)1
Avg Revenue beat(2)-8.49%
Min Revenue beat(2)-18.71%
Max Revenue beat(2)1.74%
Revenue beat(4)3
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-18.71%
Max Revenue beat(4)7.62%
Revenue beat(8)6
Avg Revenue beat(8)4.02%
Revenue beat(12)9
Avg Revenue beat(12)3.9%
Revenue beat(16)12
Avg Revenue beat(16)6.28%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-5.09%
EPS NY rev (1m)-1.72%
EPS NY rev (3m)-6.7%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 8.52 | ||
| P/S | 1.1 | ||
| P/FCF | 2.23 | ||
| P/OCF | 2.18 | ||
| P/B | 1.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.91 |
EPS(TTM)4.58
EY8.31%
EPS(NY)6.47
Fwd EY11.73%
FCF(TTM)24.76
FCFY44.92%
OCF(TTM)25.29
OCFY45.89%
SpS50.17
BVpS29.1
TBVpS-15.14
PEG (NY)2.32
PEG (5Y)1.88
Graham Number54.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.05% | ||
| ROE | 13.62% | ||
| ROCE | 1.73% | ||
| ROIC | 1.3% | ||
| ROICexc | 1.35% | ||
| ROICexgc | 1.98% | ||
| OM | 12.32% | ||
| PM (TTM) | 7.9% | ||
| GM | N/A | ||
| FCFM | 49.35% |
ROA(3y)1.32%
ROA(5y)2.28%
ROE(3y)15.01%
ROE(5y)18.36%
ROIC(3y)1.58%
ROIC(5y)2.53%
ROICexc(3y)1.64%
ROICexc(5y)2.69%
ROICexgc(3y)2.31%
ROICexgc(5y)3.65%
ROCE(3y)2.09%
ROCE(5y)3.35%
ROICexgc growth 3Y-29.6%
ROICexgc growth 5Y-41.63%
ROICexc growth 3Y-31.85%
ROICexc growth 5Y-35.75%
OM growth 3Y-15.37%
OM growth 5Y-3.18%
PM growth 3Y-19.69%
PM growth 5Y-5.88%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 4.08 | ||
| Cap/Depr | -24.05% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 7.74 | ||
| Cash Conversion | 638.07% | ||
| Profit Quality | 624.61% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.64%
ROIC/WACC0.17
Cap/Depr(3y)30.58%
Cap/Depr(5y)179.02%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.05%
Profit Quality(3y)692.82%
Profit Quality(5y)464.58%
High Growth Momentum
Growth
EPS 1Y (TTM)15.08%
EPS 3Y-16.25%
EPS 5Y6.42%
EPS Q2Q%-6.45%
EPS Next Y5.19%
EPS Next 2Y18.06%
EPS Next 3Y15.34%
EPS Next 5YN/A
Revenue 1Y (TTM)7.3%
Revenue growth 3Y-4.29%
Revenue growth 5Y10.12%
Sales Q2Q%15.1%
Revenue Next Year3.88%
Revenue Next 2Y7.37%
Revenue Next 3Y7.03%
Revenue Next 5YN/A
EBIT growth 1Y19.23%
EBIT growth 3Y-19.01%
EBIT growth 5Y6.62%
EBIT Next Year61.87%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y14.62%
FCF growth 3Y18.98%
FCF growth 5Y45.43%
OCF growth 1Y14.55%
OCF growth 3Y18.55%
OCF growth 5Y43.47%
FIDELITY NATIONAL FINANCIAL / FNF FAQ
What is the fundamental rating for FNF stock?
ChartMill assigns a fundamental rating of 4 / 10 to FNF.
What is the valuation status for FNF stock?
ChartMill assigns a valuation rating of 5 / 10 to FIDELITY NATIONAL FINANCIAL (FNF). This can be considered as Fairly Valued.
What is the profitability of FNF stock?
FIDELITY NATIONAL FINANCIAL (FNF) has a profitability rating of 4 / 10.
What are the PE and PB ratios of FIDELITY NATIONAL FINANCIAL (FNF) stock?
The Price/Earnings (PE) ratio for FIDELITY NATIONAL FINANCIAL (FNF) is 12.03 and the Price/Book (PB) ratio is 1.89.
Is the dividend of FIDELITY NATIONAL FINANCIAL sustainable?
The dividend rating of FIDELITY NATIONAL FINANCIAL (FNF) is 8 / 10 and the dividend payout ratio is 50.32%.