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 4 out of 10. The analysis compared the fundamentals against 143 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 decent growth rate and is not valued too expensively. FNF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FNF was profitable.
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
FNF's Return On Assets of 1.13% is in line compared to the rest of the industry. FNF outperforms 42.66% of its industry peers.
With a decent Return On Equity value of 14.00%, FNF is doing good in the industry, outperforming 68.53% of the companies in the same industry.
The Return On Invested Capital of FNF (1.40%) is comparable to the rest of the industry.
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
FNF has a Profit Margin of 8.39%. This is comparable to the rest of the industry: FNF outperforms 58.04% of its industry peers.
In the last couple of years the Profit Margin of FNF has declined.
With a decent Operating Margin value of 13.23%, FNF is doing good in the industry, outperforming 62.94% of the companies in the same industry.
In the last couple of years the Operating Margin of FNF has declined.
| 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.
Compared to 1 year ago, FNF has more shares outstanding
Compared to 5 years ago, FNF has less shares outstanding
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.
Looking at the Debt to FCF ratio, with a value of 0.71, FNF is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
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.
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/WACC0.15
WACC9.18%
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.
FNF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.42% yearly.
Looking at the last year, FNF shows a small growth in Revenue. The Revenue has grown by 4.45% 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)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 Y13.62%
EPS Next 2Y19.84%
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.
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
The Price/Earnings ratio is 11.76, which indicates a very decent valuation of FNF.
FNF's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of FNF to the average of the S&P500 Index (26.32), we can say FNF is valued rather cheaply.
The Price/Forward Earnings ratio is 8.23, which indicates a very decent valuation of FNF.
65.73% of the companies in the same industry are more expensive than FNF, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.13. FNF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 8.23 |
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.
Based on the Price/Free Cash Flow ratio, FNF is valued cheaper than 86.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.43 | ||
| EV/EBITDA | 13.53 |
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)0.86
PEG (5Y)1.83
EPS Next 2Y19.84%
EPS Next 3Y16.48%
5. Dividend
5.1 Amount
FNF has a Yearly Dividend Yield of 3.56%.
FNF's Dividend Yield is a higher than the industry average which is at 3.46.
Compared to an average S&P500 Dividend Yield of 2.40, FNF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
The dividend of FNF is nicely growing with an annual growth rate of 9.22%!
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
48.69% 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.
DP48.69%
EPS Next 2Y19.84%
EPS Next 3Y16.48%
54.82
-0.45 (-0.81%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners80.57%
Inst Owner Change0.05%
Ins Owners5.45%
Ins Owner Change-0.17%
Market Cap15.06B
Analysts75.56
Price Target72.17 (31.65%)
Short Float %1.32%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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)-2.66%
EPS NQ rev (3m)-11.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.35%
Revenue NQ rev (1m)0.91%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-7.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 8.23 | ||
| P/S | 1.14 | ||
| P/FCF | 2.43 | ||
| P/OCF | 2.38 | ||
| P/B | 1.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.53 |
EPS(TTM)4.66
EY8.5%
EPS(NY)6.66
Fwd EY12.16%
FCF(TTM)22.54
FCFY41.12%
OCF(TTM)23.08
OCFY42.1%
SpS47.94
BVpS28.74
TBVpS-14.24
PEG (NY)0.86
PEG (5Y)1.83
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
WACC9.18%
ROIC/WACC0.15
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)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%