FIDELITY NATIONAL FINANCIAL (FNF) Stock Fundamental Analysis
USA - NYSE:FNF - US31620R3030 - Common Stock
55.86 USD
-1.13 (-1.98%)
55.86 USD
0 (0%)
Taking everything into account, FNF scores 4 out of 10 in our fundamental rating. FNF was compared to 147 industry peers in the Insurance industry. There are concerns on the financial health of FNF while its profitability can be described as average. 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.
FNF had a positive operating cash flow in the past year.
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
With a Return On Assets value of 1.05%, FNF perfoms like the industry average, outperforming 40.82% of the companies in the same industry.
FNF has a Return On Equity of 13.62%. This is in the better half of the industry: FNF outperforms 66.67% 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 40.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FNF is below the industry average of 4.49%.
| 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
The Profit Margin of FNF (7.90%) is comparable to the rest of the industry.
FNF's Profit Margin has declined in the last couple of years.
FNF has a Operating Margin (12.32%) which is in line with its industry peers.
FNF's Operating Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, FNF has more shares outstanding
FNF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FNF has been reduced compared to a year ago.
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.
With a decent Debt to FCF ratio value of 0.65, FNF is doing good in the industry, outperforming 78.23% of the companies in the same industry.
FNF has a Debt/Equity ratio of 0.56. This is a neutral value indicating 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 76.19% 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 | 0.56 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | N/A |
ROIC/WACC0.17
WACC7.59%
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.
The Earnings Per Share has been growing slightly by 6.42% on average over the past years.
FNF shows a small growth in Revenue. In the last year, the Revenue has grown by 7.30%.
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)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
FNF is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.34% yearly.
Based on estimates for the next years, FNF will show a small growth in Revenue. The Revenue will grow by 7.03% on average per year.
EPS Next Y5.19%
EPS Next 2Y18.06%
EPS Next 3Y15.34%
EPS Next 5YN/A
Revenue Next Year3.88%
Revenue Next 2Y7.37%
Revenue Next 3Y7.03%
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
A Price/Earnings ratio of 12.20 indicates a correct valuation of FNF.
Compared to the rest of the industry, the Price/Earnings ratio of FNF is on the same level as its industry peers.
When comparing the Price/Earnings ratio of FNF to the average of the S&P500 Index (26.83), we can say FNF is valued rather cheaply.
The Price/Forward Earnings ratio is 8.64, which indicates a very decent 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 63.95% of the companies listed in the same industry.
FNF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 8.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FNF indicates a slightly more expensive valuation: FNF is more expensive than 60.54% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FNF is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.26 | ||
| EV/EBITDA | 15.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as FNF's earnings are expected to grow with 15.34% in the coming years.
PEG (NY)2.35
PEG (5Y)1.9
EPS Next 2Y18.06%
EPS Next 3Y15.34%
5. Dividend
5.1 Amount
FNF has a Yearly Dividend Yield of 3.52%.
FNF's Dividend Yield is a higher than the industry average which is at 3.26.
FNF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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
50.32% of the earnings are spent on dividend by FNF. 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.
DP50.32%
EPS Next 2Y18.06%
EPS Next 3Y15.34%
55.86
-1.13 (-1.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.05%
Inst Owner Change-0.09%
Ins Owners5.51%
Ins Owner Change-0.1%
Market Cap15.18B
Revenue(TTM)13.63B
Net Income(TTM)1.08B
Analysts77.5
Price Target71.66 (28.28%)
Short Float %1.28%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-5.09%
EPS NY rev (1m)-1.72%
EPS NY rev (3m)-6.7%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 8.64 | ||
| P/S | 1.11 | ||
| P/FCF | 2.26 | ||
| P/OCF | 2.21 | ||
| P/B | 1.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.42 |
EPS(TTM)4.58
EY8.2%
EPS(NY)6.47
Fwd EY11.58%
FCF(TTM)24.76
FCFY44.32%
OCF(TTM)25.29
OCFY45.28%
SpS50.17
BVpS29.1
TBVpS-15.14
PEG (NY)2.35
PEG (5Y)1.9
Graham Number54.76
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%
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 | 0.56 | ||
| 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
WACC7.59%
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 Y5.19%
EPS Next 2Y18.06%
EPS Next 3Y15.34%
EPS Next 5YN/A
Revenue 1Y (TTM)7.3%
Revenue growth 3Y-4.29%
Revenue growth 5Y10.12%
Sales Q2Q%15.1%
Revenue Next Year3.88%
Revenue Next 2Y7.37%
Revenue Next 3Y7.03%
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%
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 5 / 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 4 / 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 12.2 and the Price/Book (PB) ratio is 1.92.
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 50.32%.