FIDELITY NATIONAL FINANCIAL (FNF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FNF - US31620R3030 - Common Stock
54.95 USD
-0.04 (-0.07%)
54.95 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to FNF. FNF was compared to 148 industry peers in the Insurance industry. Both the profitability and financial health of FNF have multiple concerns. 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
FNF had positive earnings in the past year.
In the past year FNF had a positive cash flow from operations.
Each year in the past 5 years FNF has been profitable.
Each year in the past 5 years FNF had a positive operating cash flow.
1.2 Ratios
FNF has a worse Return On Assets (1.10%) than 60.14% of its industry peers.
FNF has a better Return On Equity (13.99%) than 66.89% of its industry peers.
The Return On Invested Capital of FNF (1.36%) is comparable to the rest of the industry.
FNF had an Average Return On Invested Capital over the past 3 years of 1.58%. This is significantly below the industry average of 14.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 13.99% | ||
| ROIC | 1.36% |
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 (8.32%) which is in line with its industry peers.
In the last couple of years the Profit Margin of FNF has declined.
FNF has a Operating Margin of 12.97%. This is comparable to the rest of the industry: FNF outperforms 53.38% of its industry peers.
FNF's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.97% | ||
| PM (TTM) | 8.32% | ||
| 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.
The number of shares outstanding for FNF has been increased compared to 1 year ago.
FNF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FNF has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of FNF is 0.78, which is an excellent value as it means it would take FNF, only 0.78 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.78, FNF is in the better half of the industry, outperforming 77.03% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that FNF is somewhat dependend on debt financing.
The Debt to Equity ratio of FNF (0.53) is worse than 73.65% 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 | 0.53 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | N/A |
ROIC/WACC0.18
WACC7.72%
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 21.23%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.42% on average over the past years.
The Revenue has been growing slightly by 3.96% in the past 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)21.23%
EPS 3Y-16.25%
EPS 5Y6.42%
EPS Q2Q%25.38%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y-4.29%
Revenue growth 5Y10.12%
Sales Q2Q%11.85%
3.2 Future
The Earnings Per Share is expected to grow by 16.09% on average over the next years. This is quite good.
FNF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.25% yearly.
EPS Next Y10.48%
EPS Next 2Y16.86%
EPS Next 3Y16.09%
EPS Next 5YN/A
Revenue Next Year6.71%
Revenue Next 2Y8.14%
Revenue Next 3Y8.25%
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
FNF is valuated reasonably with a Price/Earnings ratio of 11.19.
The rest of the industry has a similar Price/Earnings ratio as FNF.
The average S&P500 Price/Earnings ratio is at 27.19. FNF is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.67 indicates a reasonable valuation of FNF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FNF indicates a somewhat cheap valuation: FNF is cheaper than 66.89% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, FNF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 8.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FNF is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FNF indicates a rather cheap valuation: FNF is cheaper than 85.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.63 | ||
| EV/EBITDA | 11.92 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as FNF's earnings are expected to grow with 16.09% in the coming years.
PEG (NY)1.07
PEG (5Y)1.74
EPS Next 2Y16.86%
EPS Next 3Y16.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.81%, FNF has a reasonable but not impressive dividend return.
FNF's Dividend Yield is a higher than the industry average which is at 2.48.
FNF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
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 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
46.79% 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.
DP46.79%
EPS Next 2Y16.86%
EPS Next 3Y16.09%
54.95
-0.04 (-0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.76%
Inst Owner Change0%
Ins Owners5.57%
Ins Owner Change1.61%
Market Cap14.90B
Revenue(TTM)14.06B
Net Income(TTM)1.17B
Analysts80
Price Target71.6 (30.3%)
Short Float %1.48%
Short Ratio3.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Yearly Dividend1.94
Dividend Growth(5Y)9.22%
DP46.79%
Div Incr Years13
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.18%
Min EPS beat(2)-12.86%
Max EPS beat(2)8.49%
EPS beat(4)2
Avg EPS beat(4)-6.86%
Min EPS beat(4)-29.93%
Max EPS beat(4)8.49%
EPS beat(8)3
Avg EPS beat(8)-9%
EPS beat(12)4
Avg EPS beat(12)-9.32%
EPS beat(16)7
Avg EPS beat(16)-5.16%
Revenue beat(2)2
Avg Revenue beat(2)5.68%
Min Revenue beat(2)1.74%
Max Revenue beat(2)9.63%
Revenue beat(4)3
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-18.71%
Max Revenue beat(4)9.63%
Revenue beat(8)6
Avg Revenue beat(8)5.08%
Revenue beat(12)9
Avg Revenue beat(12)4.29%
Revenue beat(16)12
Avg Revenue beat(16)5.78%
PT rev (1m)0.57%
PT rev (3m)-0.07%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)0.01%
EPS NY rev (1m)0%
EPS NY rev (3m)3.23%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 8.67 | ||
| P/S | 1.06 | ||
| P/FCF | 2.63 | ||
| P/OCF | 2.56 | ||
| P/B | 1.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.92 |
EPS(TTM)4.91
EY8.94%
EPS(NY)6.34
Fwd EY11.53%
FCF(TTM)20.93
FCFY38.09%
OCF(TTM)21.46
OCFY39.05%
SpS51.85
BVpS30.82
TBVpS-14.05
PEG (NY)1.07
PEG (5Y)1.74
Graham Number58.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 13.99% | ||
| ROCE | 1.79% | ||
| ROIC | 1.36% | ||
| ROICexc | 1.4% | ||
| ROICexgc | 2.05% | ||
| OM | 12.97% | ||
| PM (TTM) | 8.32% | ||
| GM | N/A | ||
| FCFM | 40.36% |
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 | 0.53 | ||
| Debt/FCF | 0.78 | ||
| Debt/EBITDA | 3.31 | ||
| Cap/Depr | -28.77% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 8.44 | ||
| Cash Conversion | 438.36% | ||
| Profit Quality | 485.37% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.72%
ROIC/WACC0.18
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)21.23%
EPS 3Y-16.25%
EPS 5Y6.42%
EPS Q2Q%25.38%
EPS Next Y10.48%
EPS Next 2Y16.86%
EPS Next 3Y16.09%
EPS Next 5YN/A
Revenue 1Y (TTM)3.96%
Revenue growth 3Y-4.29%
Revenue growth 5Y10.12%
Sales Q2Q%11.85%
Revenue Next Year6.71%
Revenue Next 2Y8.14%
Revenue Next 3Y8.25%
Revenue Next 5YN/A
EBIT growth 1Y61.27%
EBIT growth 3Y-19.01%
EBIT growth 5Y6.62%
EBIT Next Year61.87%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y3.9%
FCF growth 3Y18.98%
FCF growth 5Y45.43%
OCF growth 1Y4.01%
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 of FIDELITY NATIONAL FINANCIAL (FNF) stock?
ChartMill assigns a valuation rating of 6 / 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 3 / 10.
What is the valuation of FIDELITY NATIONAL FINANCIAL based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FIDELITY NATIONAL FINANCIAL (FNF) is 11.19 and the Price/Book (PB) ratio is 1.78.
How sustainable is the dividend of FIDELITY NATIONAL FINANCIAL (FNF) stock?
The dividend rating of FIDELITY NATIONAL FINANCIAL (FNF) is 8 / 10 and the dividend payout ratio is 46.79%.