FIDELITY NATIONAL FINANCIAL (FNF) Stock Fundamental Analysis
NYSE:FNF - US31620R3030 - Common Stock
60.82 USD
+1.46 (+2.46%)
60.82 USD
0 (0%)
FNF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 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 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.
FNF had a positive operating cash flow in the past year.
In the past 5 years FNF has always been profitable.
In the past 5 years FNF always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.05%, FNF is in line with its industry, outperforming 44.06% of the companies in the same industry.
FNF has a better Return On Equity (13.62%) than 66.43% of its industry peers.
FNF's Return On Invested Capital of 1.30% is in line compared to the rest of the industry. FNF outperforms 43.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FNF is below the industry average of 4.11%.
| 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 has a Profit Margin (7.90%) which is in line with 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 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
FNF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FNF has been increased compared to 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
The Debt to FCF ratio of FNF is 0.65, which is an excellent value as it means it would take FNF, only 0.65 years of fcf income to pay off all of its debts.
FNF's Debt to FCF ratio of 0.65 is fine compared to the rest of the industry. FNF outperforms 76.92% of its industry peers.
FNF has a Debt/Equity ratio of 0.56. This is a neutral value indicating FNF is somewhat dependend on debt financing.
FNF's Debt to Equity ratio of 0.56 is on the low side compared to the rest of the industry. FNF is outperformed by 76.92% 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
WACC7.86%
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.
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.
Looking at the last year, FNF shows a small growth in Revenue. The Revenue has grown by 7.30% in the last 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
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.
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
With a Price/Earnings ratio of 13.28, FNF is valued correctly.
FNF's Price/Earnings ratio is in line with the industry average.
FNF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
FNF is valuated reasonably with a Price/Forward Earnings ratio of 9.38.
Based on the Price/Forward Earnings ratio, FNF is valued a bit cheaper than the industry average as 60.84% of the companies are valued more expensively.
FNF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 9.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FNF is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FNF indicates a rather cheap valuation: FNF is cheaper than 89.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.46 | ||
| EV/EBITDA | 16.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FNF does not grow enough to justify the current Price/Earnings ratio.
FNF's earnings are expected to grow with 15.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.1
PEG (5Y)2.07
EPS Next 2Y18.24%
EPS Next 3Y15.62%
5. Dividend
5.1 Amount
FNF has a Yearly Dividend Yield of 3.37%. 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 3.52.
Compared to an average S&P500 Dividend Yield of 2.34, FNF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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.
The dividend of FNF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.32%
EPS Next 2Y18.24%
EPS Next 3Y15.62%
60.82
+1.46 (+2.46%)
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 Cap16.53B
Analysts75.56
Price Target71.66 (17.82%)
Short Float %1.78%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.37% |
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)-1.89%
EPS NQ rev (1m)-4.11%
EPS NQ rev (3m)-10.93%
EPS NY rev (1m)-5.69%
EPS NY rev (3m)-6.42%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)-4.07%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 9.38 | ||
| P/S | 1.21 | ||
| P/FCF | 2.46 | ||
| P/OCF | 2.4 | ||
| P/B | 2.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.39 |
EPS(TTM)4.58
EY7.53%
EPS(NY)6.49
Fwd EY10.67%
FCF(TTM)24.76
FCFY40.71%
OCF(TTM)25.29
OCFY41.58%
SpS50.17
BVpS29.1
TBVpS-15.14
PEG (NY)2.1
PEG (5Y)2.07
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
WACC7.86%
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%