FIDELITY NATIONAL FINANCIAL (FNF) Stock Fundamental Analysis
USA - NYSE:FNF - US31620R3030 - Common Stock
60.53 USD
-0.15 (-0.25%)
60.53 USD
0 (0%)
FNF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 146 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 not valued too expensively and it also shows a decent growth rate. 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.
FNF had positive earnings in each of the past 5 years.
FNF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FNF (1.05%) is comparable to the rest of the industry.
FNF has a Return On Equity of 13.62%. This is in the better half of the industry: FNF outperforms 67.12% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.30%, FNF is in line with its industry, outperforming 43.15% of the companies in the same industry.
FNF had an Average Return On Invested Capital over the past 3 years of 1.58%. This is below the industry average of 4.47%.
| 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's Profit Margin of 7.90% is in line compared to the rest of the industry. FNF outperforms 54.11% of its industry peers.
In the last couple of years the Profit Margin of FNF has declined.
FNF has a Operating Margin (12.32%) which is comparable to the rest of the 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.
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
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.
FNF has a Debt to FCF ratio of 0.65. This is in the better half of the industry: FNF outperforms 77.40% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that 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 76.03% 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
WACC7.7%
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.
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 been growing slightly by 7.30% in the past year.
Measured over the past years, FNF shows a quite strong growth in Revenue. The Revenue has been growing by 10.12% on average per year.
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 15.62% on average per year.
Based on estimates for the next years, FNF will show a small growth in Revenue. The Revenue will grow by 6.74% on average per year.
EPS Next Y6.33%
EPS Next 2Y18.24%
EPS Next 3Y15.62%
EPS Next 5YN/A
Revenue Next Year3.81%
Revenue Next 2Y7.25%
Revenue Next 3Y6.74%
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.
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
With a Price/Earnings ratio of 13.22, FNF is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of FNF is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.30, FNF is valued rather cheaply.
The Price/Forward Earnings ratio is 9.33, which indicates a very decent valuation of FNF.
FNF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FNF is cheaper than 62.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FNF to the average of the S&P500 Index (22.73), we can say FNF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 9.33 |
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 60.27% of the companies in the same industry.
90.41% of the companies in the same industry are more expensive than FNF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.44 | ||
| EV/EBITDA | 16.32 |
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 15.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.09
PEG (5Y)2.06
EPS Next 2Y18.24%
EPS Next 3Y15.62%
5. Dividend
5.1 Amount
FNF has a Yearly Dividend Yield of 3.30%.
FNF's Dividend Yield is a higher than the industry average which is at 3.43.
Compared to an average S&P500 Dividend Yield of 2.38, FNF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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 50.32% 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.
DP50.32%
EPS Next 2Y18.24%
EPS Next 3Y15.62%
60.53
-0.15 (-0.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners80.54%
Inst Owner Change0.35%
Ins Owners5.45%
Ins Owner Change-0.12%
Market Cap16.45B
Analysts75.56
Price Target71.66 (18.39%)
Short Float %1.56%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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)-1.1%
EPS NQ rev (3m)-4.86%
EPS NY rev (1m)-5.69%
EPS NY rev (3m)-6.42%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-3.17%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.22 | ||
| Fwd PE | 9.33 | ||
| P/S | 1.21 | ||
| P/FCF | 2.44 | ||
| P/OCF | 2.39 | ||
| P/B | 2.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.32 |
EPS(TTM)4.58
EY7.57%
EPS(NY)6.49
Fwd EY10.72%
FCF(TTM)24.76
FCFY40.9%
OCF(TTM)25.29
OCFY41.78%
SpS50.17
BVpS29.1
TBVpS-15.14
PEG (NY)2.09
PEG (5Y)2.06
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
WACC7.7%
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 Y6.33%
EPS Next 2Y18.24%
EPS Next 3Y15.62%
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%