FIDELITY NATIONAL FINANCIAL (FNF) Stock Fundamental Analysis
USA - NYSE:FNF - US31620R3030 - Common Stock
59.97 USD
+0.36 (+0.6%)
59.97 USD
0 (0%)
FNF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. There are concerns on the financial health of FNF while its profitability can be described as average. FNF has a decent growth rate and is not valued too expensively. Finally FNF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
FNF had positive earnings in the past year.
In the past year FNF had a positive cash flow from operations.
In the past 5 years FNF has always been profitable.
In the past 5 years FNF always reported a positive cash flow from operatings.
1.2 Ratios
FNF has a Return On Assets of 1.05%. This is comparable to the rest of the industry: FNF outperforms 40.41% of its industry peers.
The Return On Equity of FNF (13.62%) is better than 66.44% of its industry peers.
The Return On Invested Capital of FNF (1.30%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FNF is below the industry average of 4.40%.
| 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 54.11% of its industry peers.
FNF's Profit Margin has declined in the last couple of years.
FNF's Operating Margin of 12.32% is in line compared to the rest of the industry. FNF outperforms 54.79% of its industry peers.
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
FNF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FNF has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FNF has less shares outstanding
Compared to 1 year ago, FNF has an improved debt to assets ratio.
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 78.08% of its industry peers.
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 76.71% 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/WACC0.17
WACC7.75%
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.
Looking at the last year, FNF shows a small growth in Revenue. The Revenue has grown by 7.30% in the last year.
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
The Earnings Per Share is expected to grow by 16.56% on average over the next years. This is quite good.
FNF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.74% yearly.
EPS Next Y7.02%
EPS Next 2Y19.37%
EPS Next 3Y16.56%
EPS Next 5YN/A
Revenue Next Year3.81%
Revenue Next 2Y7.25%
Revenue Next 3Y6.74%
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
FNF is valuated correctly with a Price/Earnings ratio of 13.09.
FNF's Price/Earnings ratio is in line with the industry average.
FNF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
Based on the Price/Forward Earnings ratio of 9.07, the valuation of FNF can be described as reasonable.
FNF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FNF is cheaper than 65.07% of the companies in the same industry.
FNF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 9.07 |
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 60.96% 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 90.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.42 | ||
| EV/EBITDA | 16.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FNF does not grow enough to justify the current Price/Earnings ratio.
FNF's earnings are expected to grow with 16.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.86
PEG (5Y)2.04
EPS Next 2Y19.37%
EPS Next 3Y16.56%
5. Dividend
5.1 Amount
FNF has a Yearly Dividend Yield of 3.36%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.33, FNF pays a bit more dividend than its industry peers.
FNF's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
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 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 2Y19.37%
EPS Next 3Y16.56%
59.97
+0.36 (+0.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.05%
Inst Owner Change0%
Ins Owners5.51%
Ins Owner Change-0.1%
Market Cap16.30B
Analysts77.5
Price Target71.66 (19.49%)
Short Float %1.65%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
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)-0.71%
EPS NQ rev (1m)1.97%
EPS NQ rev (3m)-2.99%
EPS NY rev (1m)0.65%
EPS NY rev (3m)-4.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 9.07 | ||
| P/S | 1.2 | ||
| P/FCF | 2.42 | ||
| P/OCF | 2.37 | ||
| P/B | 2.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.17 |
EPS(TTM)4.58
EY7.64%
EPS(NY)6.61
Fwd EY11.03%
FCF(TTM)24.76
FCFY41.28%
OCF(TTM)25.29
OCFY42.17%
SpS50.17
BVpS29.1
TBVpS-15.14
PEG (NY)1.86
PEG (5Y)2.04
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%
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-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
WACC7.75%
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 Y7.02%
EPS Next 2Y19.37%
EPS Next 3Y16.56%
EPS Next 5YN/A
Revenue 1Y (TTM)7.3%
Revenue growth 3Y-4.29%
Revenue growth 5Y10.12%
Sales Q2Q%15.1%
Revenue Next Year3.81%
Revenue Next 2Y7.25%
Revenue Next 3Y6.74%
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%