FIDELITY NATIONAL FINANCIAL (FNF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FNF - US31620R3030 - Common Stock
57.57 USD
-0.11 (-0.19%)
57.57 USD
0 (0%)
Overall FNF gets a fundamental rating of 4 out of 10. We evaluated FNF against 147 industry peers in the Insurance industry. Both the profitability and financial health of FNF have multiple concerns. FNF has a decent growth rate and is not valued too expensively. 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.
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
FNF has a worse Return On Assets (1.10%) than 62.59% of its industry peers.
FNF has a Return On Equity of 13.99%. This is in the better half of the industry: FNF outperforms 65.99% of its industry peers.
FNF has a worse Return On Invested Capital (1.36%) than 60.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FNF is significantly below the industry average of 14.90%.
| 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
The Profit Margin of FNF (8.32%) is comparable to the rest of the industry.
FNF's Profit Margin has declined in the last couple of years.
The Operating Margin of FNF (12.97%) is comparable to the rest of the industry.
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
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
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 76.19% of the companies in the same industry.
FNF has a Debt/Equity ratio of 0.53. This is a neutral value indicating FNF is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, FNF is not doing good in the industry: 74.15% of the companies in the same industry are doing better.
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 | 0.53 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | N/A |
ROIC/WACC0.17
WACC7.76%
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 impressive 21.23% over the past year.
Measured over the past 5 years, FNF shows a small growth in Earnings Per Share. The EPS has been growing by 6.42% on average per year.
The Revenue has been growing slightly by 3.96% 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)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 16.17% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.30% on average over the next years. This is quite good.
EPS Next Y10.48%
EPS Next 2Y16.86%
EPS Next 3Y16.17%
EPS Next 5YN/A
Revenue Next Year6.71%
Revenue Next 2Y8.14%
Revenue Next 3Y8.3%
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.
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
With a Price/Earnings ratio of 11.73, the valuation of FNF can be described as very reasonable.
FNF's Price/Earnings is on the same level as the industry average.
FNF is valuated cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
FNF is valuated reasonably with a Price/Forward Earnings ratio of 9.09.
Based on the Price/Forward Earnings ratio, FNF is valued a bit cheaper than 63.95% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FNF to the average of the S&P500 Index (23.78), we can say FNF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 9.09 |
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 84.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.75 | ||
| EV/EBITDA | 12.47 |
4.3 Compensation for Growth
FNF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FNF's earnings are expected to grow with 16.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.12
PEG (5Y)1.83
EPS Next 2Y16.86%
EPS Next 3Y16.17%
5. Dividend
5.1 Amount
FNF has a Yearly Dividend Yield of 3.61%. Purely for dividend investing, there may be better candidates out there.
FNF's Dividend Yield is a higher than the industry average which is at 3.42.
FNF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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
FNF pays out 46.79% 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.
DP46.79%
EPS Next 2Y16.86%
EPS Next 3Y16.17%
57.57
-0.11 (-0.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.78%
Inst Owner Change-0.01%
Ins Owners5.57%
Ins Owner Change1.61%
Market Cap15.61B
Revenue(TTM)14.06B
Net Income(TTM)1.17B
Analysts80
Price Target71.2 (23.68%)
Short Float %1.35%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend1.94
Dividend Growth(5Y)9.22%
DP46.79%
Div Incr Years13
Div Non Decr Years13
Ex-Date
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)-0.29%
PT rev (3m)-0.64%
EPS NQ rev (1m)1.27%
EPS NQ rev (3m)-0.33%
EPS NY rev (1m)5.03%
EPS NY rev (3m)3.9%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)2.72%
Revenue NY rev (3m)2.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 9.09 | ||
| P/S | 1.11 | ||
| P/FCF | 2.75 | ||
| P/OCF | 2.68 | ||
| P/B | 1.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.47 |
EPS(TTM)4.91
EY8.53%
EPS(NY)6.34
Fwd EY11.01%
FCF(TTM)20.93
FCFY36.35%
OCF(TTM)21.46
OCFY37.27%
SpS51.85
BVpS30.82
TBVpS-14.05
PEG (NY)1.12
PEG (5Y)1.83
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
WACC7.76%
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)21.23%
EPS 3Y-16.25%
EPS 5Y6.42%
EPS Q2Q%25.38%
EPS Next Y10.48%
EPS Next 2Y16.86%
EPS Next 3Y16.17%
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 3Y8.3%
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 for 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 are the PE and PB ratios of FIDELITY NATIONAL FINANCIAL (FNF) stock?
The Price/Earnings (PE) ratio for FIDELITY NATIONAL FINANCIAL (FNF) is 11.73 and the Price/Book (PB) ratio is 1.87.
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 46.79%.