FIDELITY NATIONAL FINANCIAL (FNF) Stock Fundamental Analysis
NYSE:FNF - New York Stock Exchange, Inc. - US31620R3030 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FNF. FNF was compared to 143 industry peers in the Insurance industry. FNF has a medium profitability rating, but doesn't score so well on its financial health evaluation. FNF is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
In the past 5 years FNF has always been profitable.
Each year in the past 5 years FNF had a positive operating cash flow.
1.2 Ratios
FNF has a Return On Assets (1.33%) which is in line with its industry peers.
FNF's Return On Equity of 16.38% is fine compared to the rest of the industry. FNF outperforms 71.33% of its industry peers.
With a Return On Invested Capital value of 1.62%, FNF perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FNF is below the industry average of 4.47%.
The 3 year average ROIC (1.58%) for FNF is below the current ROIC(1.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 16.38% | ||
| ROIC | 1.62% |
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
The Profit Margin of FNF (9.26%) is comparable to the rest of the industry.
FNF's Profit Margin has declined in the last couple of years.
FNF has a better Operating Margin (14.23%) than 62.94% of its industry peers.
FNF's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.23% | ||
| PM (TTM) | 9.26% | ||
| 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
FNF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, FNF has more shares outstanding
FNF has less shares outstanding than it did 5 years ago.
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.
The Debt to FCF ratio of FNF (0.65) is better than 73.43% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that FNF is somewhat dependend on debt financing.
FNF's Debt to Equity ratio of 0.56 is on the low side compared to the rest of the industry. FNF is outperformed by 72.73% of its industry peers.
Even though the debt/equity ratio score it not favorable for FNF, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC0.2
WACC8.02%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
FNF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.19%, which is quite impressive.
FNF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.42% yearly.
The Revenue has grown by 16.38% in the past year. This is quite good.
The Revenue has been growing by 10.12% on average over the past years. This is quite good.
EPS 1Y (TTM)32.19%
EPS 3Y-16.25%
EPS 5Y6.42%
EPS Q2Q%78.67%
Revenue 1Y (TTM)16.38%
Revenue growth 3Y-4.29%
Revenue growth 5Y10.12%
Sales Q2Q%5.51%
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 19.09% on average per year.
FNF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.92% yearly.
EPS Next Y28.59%
EPS Next 2Y22.74%
EPS Next 3Y19.09%
EPS Next 5YN/A
Revenue Next Year13.1%
Revenue Next 2Y10.77%
Revenue Next 3Y9.92%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.62, the valuation of FNF can be described as correct.
FNF's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of FNF to the average of the S&P500 Index (28.92), we can say FNF is valued rather cheaply.
A Price/Forward Earnings ratio of 10.59 indicates a reasonable valuation of FNF.
FNF's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FNF to the average of the S&P500 Index (21.65), we can say FNF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.62 | ||
| Fwd PE | 10.59 |
4.2 Price Multiples
FNF's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FNF indicates a rather cheap valuation: FNF is cheaper than 82.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.61 | ||
| EV/EBITDA | 14.34 |
4.3 Compensation for Growth
FNF'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 FNF's earnings are expected to grow with 19.09% in the coming years.
PEG (NY)0.48
PEG (5Y)2.12
EPS Next 2Y22.74%
EPS Next 3Y19.09%
5. Dividend
5.1 Amount
FNF has a Yearly Dividend Yield of 3.24%.
FNF's Dividend Yield is a higher than the industry average which is at 3.28.
FNF's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
The dividend of FNF is nicely growing with an annual growth rate of 9.22%!
FNF has paid a dividend for at least 10 years, which is a reliable track record.
FNF has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.22%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
FNF pays out 41.89% of its income as dividend. 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.
DP41.89%
EPS Next 2Y22.74%
EPS Next 3Y19.09%
63.21
+1.21 (+1.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.55%
Inst Owner Change0.11%
Ins Owners5.45%
Ins Owner Change9.91%
Market Cap17.38B
Analysts76
Price Target72.22 (14.25%)
Short Float %0.95%
Short Ratio1.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend1.94
Dividend Growth(5Y)9.22%
DP41.89%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.49%
Min EPS beat(2)0.13%
Max EPS beat(2)6.85%
EPS beat(4)2
Avg EPS beat(4)-2.91%
Min EPS beat(4)-10.42%
Max EPS beat(4)6.85%
EPS beat(8)3
Avg EPS beat(8)-8.4%
EPS beat(12)5
Avg EPS beat(12)-6.61%
EPS beat(16)9
Avg EPS beat(16)3.03%
Revenue beat(2)2
Avg Revenue beat(2)5.58%
Min Revenue beat(2)3.55%
Max Revenue beat(2)7.62%
Revenue beat(4)3
Avg Revenue beat(4)7.63%
Min Revenue beat(4)-2.83%
Max Revenue beat(4)22.19%
Revenue beat(8)7
Avg Revenue beat(8)8.17%
Revenue beat(12)9
Avg Revenue beat(12)3.93%
Revenue beat(16)13
Avg Revenue beat(16)9.85%
PT rev (1m)0%
PT rev (3m)5.04%
EPS NQ rev (1m)1.9%
EPS NQ rev (3m)-8.11%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-4.07%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)1.18%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)6.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.62 | ||
| Fwd PE | 10.59 | ||
| P/S | 1.27 | ||
| P/FCF | 2.61 | ||
| P/OCF | 2.55 | ||
| P/B | 2.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.34 |
EPS(TTM)4.64
EY7.34%
EPS(NY)5.97
Fwd EY9.44%
FCF(TTM)24.25
FCFY38.37%
OCF(TTM)24.78
OCFY39.21%
SpS49.87
BVpS28.2
TBVpS-14.23
PEG (NY)0.48
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 16.38% | ||
| ROCE | 2.14% | ||
| ROIC | 1.62% | ||
| ROICexc | 1.68% | ||
| ROICexgc | 2.44% | ||
| OM | 14.23% | ||
| PM (TTM) | 9.26% | ||
| GM | N/A | ||
| FCFM | 48.63% |
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%
ROICexcg growth 3Y-29.6%
ROICexcg 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-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | -21.47% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 9.76 | ||
| Cash Conversion | 536.19% | ||
| Profit Quality | 525.12% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.02%
ROIC/WACC0.2
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)32.19%
EPS 3Y-16.25%
EPS 5Y6.42%
EPS Q2Q%78.67%
EPS Next Y28.59%
EPS Next 2Y22.74%
EPS Next 3Y19.09%
EPS Next 5YN/A
Revenue 1Y (TTM)16.38%
Revenue growth 3Y-4.29%
Revenue growth 5Y10.12%
Sales Q2Q%5.51%
Revenue Next Year13.1%
Revenue Next 2Y10.77%
Revenue Next 3Y9.92%
Revenue Next 5YN/A
EBIT growth 1Y125.03%
EBIT growth 3Y-19.01%
EBIT growth 5Y6.62%
EBIT Next Year78.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.09%
FCF growth 3Y18.98%
FCF growth 5Y45.43%
OCF growth 1Y5.2%
OCF growth 3Y18.55%
OCF growth 5Y43.47%