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First American Financial Corp FAF

Morningstar Rating
$54.09 −3.68 (6.37%)
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About Quantitative Ratings

Morningstar Quantitative Ratings for Stocks are generated using an algorithm that compares companies that are not under analyst coverage to peer companies that do receive analyst-driven ratings. Companies with quantitative ratings are not formally covered by a Morningstar analyst, but are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative moat, fair value, and uncertainty rating.

Price vs Fair Value

FAF is trading at a 15% discount.
Price
$57.01
Fair Value
$84.54
Uncertainty
High
1-Star Price
$76.89
5-Star Price
$16.83
Economic Moat
Zfg
Capital Allocation
Pbybnqbm
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News

Trading Information

Previous Close Price
$57.77
Day Range
$51.5856.52
52-Week Range
$49.5865.53
Bid/Ask
$54.08 / $54.09
Market Cap
$5.60 Bil
Volume/Avg
1.3 Mil / 741,600

Key Statistics

Price/Earnings (Normalized)
15.41
Price/Sales
1.01
Dividend Yield (Trailing)
3.63%
Dividend Yield (Forward)
3.64%
Total Yield
4.83%

Company Profile

First American Financial Corp is a financial services business providing insurance through two segments: title insurance and related services and Home warranty. Title insurance and related services include real estate insurance, property closing services, third-party handling of real estate funds (escrow), risk mitigation, real estate data products, and related real estate transaction services. The home warranty segment provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. Nearly all the company's revenue comes from the title insurance and related services segment in the United States.
Sector
Financial Services
Industry
Insurance - Specialty
Stock Style Box
Small Value
Total Number of Employees
19,210

Comparables

Valuation

Metric
FAF
STC
ITIC
Price/Earnings (Normalized)
15.4130.9414.39
Price/Book Value
1.231.171.23
Price/Sales
1.010.721.38
Price/Cash Flow
9.6516.4527.18
Price/Earnings
FAF
STC
ITIC

Financial Strength

Metric
FAF
STC
ITIC
Quick Ratio
Current Ratio
Interest Coverage
3.074.08
Quick Ratio
No chart available

Profitability

Metric
FAF
STC
ITIC
Return on Assets (Normalized)
2.56%2.47%6.60%
Return on Equity (Normalized)
8.44%4.90%8.86%
Return on Invested Capital (Normalized)
3.82%4.08%8.62%
Return on Assets
FAF
STC
ITIC
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Capital Allocation
Economic Moat
Market Cap
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MDBPF
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RYAN
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ESNT
Essent Group LtdXjmtx$5.8 Bil
BZLYF
Beazley PLCCcnmb$5.5 Bil
MTG
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AXS
Axis Capital Holdings LtdFfy$5.3 Bil
ACT
Enact Holdings IncYtqgv$4.7 Bil

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