FIDELITY NATIONAL FINANCIAL (FNF) Stock Fundamental Analysis
NYSE:FNF - New York Stock Exchange, Inc. - US31620R3030 - Common Stock - Currency: USD
FNF gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. While FNF is still in line with the averages on profitability rating, there are concerns on its financial health. FNF may be a bit undervalued, certainly considering the very reasonable score on growth Finally 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.
Each year in the past 5 years FNF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.13%, FNF is in line with its industry, outperforming 43.45% of the companies in the same industry.
The Return On Equity of FNF (14.00%) is better than 68.97% of its industry peers.
FNF has a Return On Invested Capital of 1.40%. This is comparable to the rest of the industry: FNF outperforms 43.45% of its industry peers.
FNF had an Average Return On Invested Capital over the past 3 years of 1.58%. This is below the industry average of 4.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 14% | ||
| ROIC | 1.4% |
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 (8.39%) is comparable to the rest of the industry.
FNF's Profit Margin has declined in the last couple of years.
FNF's Operating Margin of 13.23% is fine compared to the rest of the industry. FNF outperforms 62.76% of its industry peers.
FNF's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.23% | ||
| PM (TTM) | 8.39% | ||
| 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.
The number of shares outstanding for FNF has been reduced compared to 5 years ago.
The debt/assets ratio for FNF has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of FNF is 0.71, which is an excellent value as it means it would take FNF, only 0.71 years of fcf income to pay off all of its debts.
FNF has a Debt to FCF ratio of 0.71. This is in the better half of the industry: FNF outperforms 77.24% 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 72.41% 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 | 0.71 | ||
| Altman-Z | N/A |
ROIC/WACC0.18
WACC7.88%
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 24.27% 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 4.45% in the past year.
The Revenue has been growing by 10.12% on average over the past years. This is quite good.
EPS 1Y (TTM)24.27%
EPS 3Y-16.25%
EPS 5Y6.42%
EPS Q2Q%2.63%
Revenue 1Y (TTM)4.45%
Revenue growth 3Y-4.29%
Revenue growth 5Y10.12%
Sales Q2Q%-17.28%
3.2 Future
FNF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.48% yearly.
The Revenue is expected to grow by 6.61% on average over the next years.
EPS Next Y11.61%
EPS Next 2Y19.11%
EPS Next 3Y16.48%
EPS Next 5YN/A
Revenue Next Year4.02%
Revenue Next 2Y8.59%
Revenue Next 3Y6.61%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.33 indicates a reasonable valuation of FNF.
Based on the Price/Earnings ratio, FNF is valued a bit cheaper than the industry average as 60.69% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. FNF is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.02, the valuation of FNF can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FNF indicates a somewhat cheap valuation: FNF is cheaper than 66.90% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. FNF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 8.02 |
4.2 Price Multiples
FNF's Enterprise Value to EBITDA is on the same level as the industry average.
FNF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FNF is cheaper than 86.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.34 | ||
| EV/EBITDA | 12.54 |
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.
FNF's earnings are expected to grow with 16.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.98
PEG (5Y)1.77
EPS Next 2Y19.11%
EPS Next 3Y16.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.90%, FNF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.64, FNF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, FNF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
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 48.69% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of FNF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP48.69%
EPS Next 2Y19.11%
EPS Next 3Y16.48%
52.8
+1.58 (+3.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners80.57%
Inst Owner Change0%
Ins Owners5.45%
Ins Owner Change-0.15%
Market Cap14.50B
Analysts75.56
Price Target72.17 (36.69%)
Short Float %1.5%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Yearly Dividend1.94
Dividend Growth(5Y)9.22%
DP48.69%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.54%
Min EPS beat(2)-29.93%
Max EPS beat(2)6.85%
EPS beat(4)2
Avg EPS beat(4)-7.78%
Min EPS beat(4)-29.93%
Max EPS beat(4)6.85%
EPS beat(8)3
Avg EPS beat(8)-7.58%
EPS beat(12)4
Avg EPS beat(12)-9.66%
EPS beat(16)8
Avg EPS beat(16)-0.51%
Revenue beat(2)1
Avg Revenue beat(2)-7.58%
Min Revenue beat(2)-18.71%
Max Revenue beat(2)3.55%
Revenue beat(4)2
Avg Revenue beat(4)-2.59%
Min Revenue beat(4)-18.71%
Max Revenue beat(4)7.62%
Revenue beat(8)6
Avg Revenue beat(8)5.63%
Revenue beat(12)8
Avg Revenue beat(12)1.79%
Revenue beat(16)12
Avg Revenue beat(16)8.28%
PT rev (1m)-1.19%
PT rev (3m)-0.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.71%
EPS NY rev (1m)-1.77%
EPS NY rev (3m)-12.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 8.02 | ||
| P/S | 1.1 | ||
| P/FCF | 2.34 | ||
| P/OCF | 2.29 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.54 |
EPS(TTM)4.66
EY8.83%
EPS(NY)6.58
Fwd EY12.47%
FCF(TTM)22.54
FCFY42.69%
OCF(TTM)23.08
OCFY43.71%
SpS47.94
BVpS28.74
TBVpS-14.24
PEG (NY)0.98
PEG (5Y)1.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 14% | ||
| ROCE | 1.86% | ||
| ROIC | 1.4% | ||
| ROICexc | 1.47% | ||
| ROICexgc | 2.16% | ||
| OM | 13.23% | ||
| PM (TTM) | 8.39% | ||
| GM | N/A | ||
| FCFM | 47.03% |
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 Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 0.71 | ||
| Debt/EBITDA | 3.94 | ||
| Cap/Depr | -23.6% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 8.84 | ||
| Cash Conversion | 568.52% | ||
| Profit Quality | 560.27% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC7.88%
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)24.27%
EPS 3Y-16.25%
EPS 5Y6.42%
EPS Q2Q%2.63%
EPS Next Y11.61%
EPS Next 2Y19.11%
EPS Next 3Y16.48%
EPS Next 5YN/A
Revenue 1Y (TTM)4.45%
Revenue growth 3Y-4.29%
Revenue growth 5Y10.12%
Sales Q2Q%-17.28%
Revenue Next Year4.02%
Revenue Next 2Y8.59%
Revenue Next 3Y6.61%
Revenue Next 5YN/A
EBIT growth 1Y36.2%
EBIT growth 3Y-19.01%
EBIT growth 5Y6.62%
EBIT Next Year61.87%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y24.39%
FCF growth 3Y18.98%
FCF growth 5Y45.43%
OCF growth 1Y24.15%
OCF growth 3Y18.55%
OCF growth 5Y43.47%