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 143 industry peers in the Insurance industry. FNF has a medium profitability rating, but doesn't score so well on its financial health evaluation. FNF has a correct valuation and a medium growth rate. 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 Return On Assets (1.33%) which is comparable to the rest of the industry.
FNF has a Return On Equity of 16.38%. This is in the better half of the industry: FNF outperforms 76.92% of its industry peers.
FNF has a Return On Invested Capital of 1.62%. This is comparable to the rest of the industry: FNF outperforms 46.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FNF is below the industry average of 4.27%.
The last Return On Invested Capital (1.62%) for FNF is above the 3 year average (1.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 16.38% | ||
| ROIC | 1.62% |
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
With a Profit Margin value of 9.26%, FNF perfoms like the industry average, outperforming 58.04% of the companies in the same industry.
In the last couple of years the Profit Margin of FNF has declined.
FNF has a better Operating Margin (14.23%) than 63.64% of its industry peers.
FNF's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.23% | ||
| PM (TTM) | 9.26% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FNF 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.
FNF has a better Debt to FCF ratio (0.65) than 76.22% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that FNF is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, FNF is doing worse than 72.73% of the companies in the same industry.
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/WACC0.2
WACC7.94%
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 24.27%, which is quite impressive.
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 grown by 16.70% in the past year. This is quite good.
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)24.27%
EPS 3Y-16.25%
EPS 5Y6.42%
EPS Q2Q%2.63%
Revenue 1Y (TTM)16.7%
Revenue growth 3Y-4.29%
Revenue growth 5Y10.12%
Sales Q2Q%-17.28%
3.2 Future
The Earnings Per Share is expected to grow by 16.48% 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 6.61% yearly.
EPS Next Y13.62%
EPS Next 2Y19.84%
EPS Next 3Y16.48%
EPS Next 5YN/A
Revenue Next Year4.05%
Revenue Next 2Y8.57%
Revenue Next 3Y6.61%
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
A Price/Earnings ratio of 11.62 indicates a reasonable valuation of FNF.
FNF's Price/Earnings is on the same level as the industry average.
FNF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.03.
With a Price/Forward Earnings ratio of 8.13, the valuation of FNF can be described as very reasonable.
Based on the Price/Forward Earnings ratio, FNF is valued a bit cheaper than the industry average as 65.03% of the companies are valued more expensively.
FNF is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 8.13 |
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 86.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.23 | ||
| EV/EBITDA | 12.86 |
4.3 Compensation for Growth
The 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)0.85
PEG (5Y)1.81
EPS Next 2Y19.84%
EPS Next 3Y16.48%
5. Dividend
5.1 Amount
FNF has a Yearly Dividend Yield of 3.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.17, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
On average, the dividend of FNF grows each year by 9.22%, which is quite nice.
FNF has been paying a dividend for at least 10 years, so it has 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
41.89% 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.
DP41.89%
EPS Next 2Y19.84%
EPS Next 3Y16.48%
54.16
-2.27 (-4.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.55%
Inst Owner Change0.04%
Ins Owners5.45%
Ins Owner Change-0.07%
Market Cap14.87B
Analysts78
Price Target73.03 (34.84%)
Short Float %1.4%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend1.94
Dividend Growth(5Y)9.22%
DP41.89%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.49%
Min EPS beat(2)0.13%
Max EPS beat(2)6.85%
EPS beat(4)2
Avg EPS beat(4)-2.91%
Min EPS beat(4)-10.42%
Max EPS beat(4)6.85%
EPS beat(8)3
Avg EPS beat(8)-8.4%
EPS beat(12)5
Avg EPS beat(12)-6.61%
EPS beat(16)9
Avg EPS beat(16)3.03%
Revenue beat(2)2
Avg Revenue beat(2)5.58%
Min Revenue beat(2)3.55%
Max Revenue beat(2)7.62%
Revenue beat(4)3
Avg Revenue beat(4)7.63%
Min Revenue beat(4)-2.83%
Max Revenue beat(4)22.19%
Revenue beat(8)7
Avg Revenue beat(8)8.17%
Revenue beat(12)9
Avg Revenue beat(12)3.93%
Revenue beat(16)13
Avg Revenue beat(16)9.85%
PT rev (1m)1.13%
PT rev (3m)5.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)-11.64%
EPS NY rev (3m)-11.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.42%
Revenue NY rev (1m)-8.01%
Revenue NY rev (3m)-2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 8.13 | ||
| P/S | 1.08 | ||
| P/FCF | 2.23 | ||
| P/OCF | 2.18 | ||
| P/B | 1.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.86 |
EPS(TTM)4.66
EY8.6%
EPS(NY)6.66
Fwd EY12.3%
FCF(TTM)24.28
FCFY44.84%
OCF(TTM)24.81
OCFY45.82%
SpS49.93
BVpS28.23
TBVpS-14.25
PEG (NY)0.85
PEG (5Y)1.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 16.38% | ||
| ROCE | 2.14% | ||
| ROIC | 1.62% | ||
| ROICexc | 1.68% | ||
| ROICexgc | 2.44% | ||
| OM | 14.23% | ||
| PM (TTM) | 9.26% | ||
| GM | N/A | ||
| FCFM | 48.63% |
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 Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 0.65 | ||
| Debt/EBITDA | 3.4 | ||
| Cap/Depr | -21.47% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 9.76 | ||
| Cash Conversion | 536.19% | ||
| Profit Quality | 525.12% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC7.94%
ROIC/WACC0.2
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 Y13.62%
EPS Next 2Y19.84%
EPS Next 3Y16.48%
EPS Next 5YN/A
Revenue 1Y (TTM)16.7%
Revenue growth 3Y-4.29%
Revenue growth 5Y10.12%
Sales Q2Q%-17.28%
Revenue Next Year4.05%
Revenue Next 2Y8.57%
Revenue Next 3Y6.61%
Revenue Next 5YN/A
EBIT growth 1Y125.03%
EBIT growth 3Y-19.01%
EBIT growth 5Y6.62%
EBIT Next Year78.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.09%
FCF growth 3Y18.98%
FCF growth 5Y45.43%
OCF growth 1Y5.2%
OCF growth 3Y18.55%
OCF growth 5Y43.47%