-0.96%
1.25%
-1.45%
4.36%
4.76%
-15.15%
2.00%
AI Spotlight on FAF
Company Description
First American Financial Corporation, through its subsidiaries, provides financial services.It operates through Title Insurance and Services, and Specialty Insurance segments.The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services.
This segment also provides closing and/or escrow services; products, services, and solutions to mitigate risk or otherwise facilitate real estate transactions; and appraisals and other valuation-related products and services, lien release and document custodial services, warehouse lending services, default-related products and services, mortgage subservicing, and related products and services, as well as banking, trust, and wealth management services.In addition, it accommodates tax-deferred exchanges of real estate; and maintains, manages, and provides access to title plant data and records.This segment offers its products through a network of direct operations and agents in 49 states and in the District of Columbia, as well as in Canada, the United Kingdom, Australia, South Korea, and internationally.
The Specialty Insurance segment provides property and casualty insurance comprising coverage to residential homeowners and renters for liability losses and typical hazards, such as fire, theft, vandalism, and other types of property damage.It also offers residential service contracts that cover residential systems, such as heating and air conditioning systems, and appliances against failures that occur as the result of normal usage during the coverage period.First American Financial Corporation was founded in 1889 and is headquartered in Santa Ana, California.
Market Data
| Last Price | 63.22 |
| Change Percentage | -0.96% |
| Open | 63.52 |
| Previous Close | 63.83 |
| Market Cap ( Millions) | 6512 |
| Volume | 552276 |
| Year High | 70.92 |
| Year Low | 51.6 |
| M A 50 | 64.31 |
| M A 200 | 60.76 |
Financial Ratios
| FCF Yield | 4.81% |
| Dividend Yield | 3.39% |
| ROE | 1.90% |
| Debt / Equity | 58.29% |
| Net Debt / EBIDTA | 8.79% |
| Price To Book | 1.29 |
| Price Earnings Ratio | 70.58 |
| Price To FCF | 20.79 |
| Price To sales | 1.16 |
| EV / EBITDA | 39.03 |
News
- Jan -14 - Will First American Financial (FAF) Beat Estimates Again in Its Next Earnings Report?
- Jan -02 - FAF Rises 17% in 6 Months: Time to Buy the Stock for Solid Returns?
- Dec -20 - Buy 5 Value Stocks Amid Strong Upside Potential in the Short Term
- Nov -27 - The Zacks Analyst Blog First American Financial, Cincinnati Financial, CNA Financial and American Financial
- Nov -26 - 4 Dividend-Paying P&C Stocks to Watch in the Insurance Space
- Nov -14 - First American Stock Near 52-Week High: Is This Your Buy Signal?
- Nov -11 - First American Financial: Housing Market Malaise Outweighs Portfolio Repositioning
- Oct -24 - First American Q3 Earnings Beat Estimates, Dividend Raised
- Oct -24 - First American Financial Corporation (FAF) Q3 2024 Earnings Call Transcript
- Oct -24 - First American Financial (FAF) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
- Oct -23 - First American Financial (FAF) Q3 Earnings Top Estimates
- Oct -21 - What Analyst Projections for Key Metrics Reveal About First American Financial (FAF) Q3 Earnings
- Sep -24 - FAF Stock Near 52-Week High: Should You Buy or Wait for a Pullback?
- Sep -24 - First American Financial Corporation Prices Senior Notes Offering
- Sep -11 - First American Shares More Profits, Increases Dividend by 2%
- Sep -09 - First American Financial discloses $342 million loss on the sale of bonds
- Aug -21 - 5 Dividend-Paying P&C Insurers That Ensure Stable Income
- Aug -16 - Why First American Financial (FAF) is a Great Dividend Stock Right Now
- Jul -25 - First American Financial Corporation (FAF) Q2 2024 Earnings Call Transcript
- Jul -25 - First American (FAF) Q2 Earnings Top, Revenues Miss Estimates
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Title Insurance and Services
Expected Growth : 6.5 %
What the company do ?
First American Financial Corporation provides title insurance and settlement services, ensuring secure and efficient real estate transactions, protecting buyers and sellers from ownership disputes.
Why we expect these perspectives ?
First American Financial Corporation's Title Insurance and Services segment growth of 6.5% is driven by increasing demand for title insurance and settlement services, fueled by a strong housing market, rising refinance activity, and expansion into new markets. Additionally, the company's investments in digital transformation and operational efficiencies have improved customer experience and reduced costs, contributing to the segment's growth.
Segment n°2 -> Specialty Insurance
Expected Growth : 7.5 %
What the company do ?
Specialty Insurance from First American Financial Corporation provides title insurance and settlement services to protect against title defects and errors.
Why we expect these perspectives ?
Strong demand for specialty insurance products, driven by increasing adoption of title insurance and settlement services in the real estate industry, coupled with First American's expansion into new markets and strategic acquisitions, have contributed to the 7.5% growth. Additionally, the company's focus on digital transformation and operational efficiency has enhanced its ability to capitalize on market opportunities.
Segment n°3 -> Corporate and Eliminations
Expected Growth : 6.0 %
What the company do ?
Corporate and Eliminations from First American Financial Corporation refers to the consolidation of corporate expenses, interest, and intersegment eliminations, providing a comprehensive view of the company's financial performance.
Why we expect these perspectives ?
First American Financial Corporation's Corporate and Eliminations segment growth of 6.0% is driven by increased investment income, reduced operating expenses, and a lower effective tax rate. Additionally, the company's efforts to optimize its capital structure and reduce debt have contributed to the segment's growth.
First American Financial Corporation Products
| Product Range | What is it ? |
|---|---|
| Title Insurance and Escrow Services | Provides title insurance policies and escrow services to protect buyers and lenders from defects in title and ensure smooth transactions. |
| Settlement Services | Offers a range of settlement services, including closing and escrow services, to facilitate real estate transactions. |
| Property and Casualty Insurance | Provides property and casualty insurance products to protect homeowners and businesses from unforeseen events. |
| Home Warranty Services | Offers home warranty services to protect homeowners from costly repairs and replacements of home systems and appliances. |
| Data and Analytics | Provides data and analytics solutions to help real estate professionals, lenders, and investors make informed decisions. |
| Mortgage Solutions | Offers mortgage solutions, including loan origination and servicing, to help lenders and borrowers navigate the mortgage process. |
First American Financial Corporation's Porter Forces
Threat Of Substitutes
The threat of substitutes for First American Financial Corporation is moderate due to the presence of alternative title insurance and settlement services providers.
Bargaining Power Of Customers
The bargaining power of customers is low for First American Financial Corporation due to the company's strong brand recognition and diversified customer base.
Bargaining Power Of Suppliers
The bargaining power of suppliers is moderate for First American Financial Corporation due to the presence of multiple suppliers of title insurance and settlement services.
Threat Of New Entrants
The threat of new entrants is low for First American Financial Corporation due to the high barriers to entry in the title insurance and settlement services industry.
Intensity Of Rivalry
The intensity of rivalry is high for First American Financial Corporation due to the presence of several established players in the title insurance and settlement services industry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 31.67% |
| Debt Cost | 10.44% |
| Equity Weight | 68.33% |
| Equity Cost | 10.44% |
| WACC | 10.44% |
| Leverage | 46.35% |
First American Financial Corporation : Quality Control
First American Financial Corporation passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| MTG | MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services to lenders and government sponsored entities in the United States, Puerto … |
| RDN | Radian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the United States. Its Mortgage segment offers credit-related insurance coverage primarily through private … |
| AIZ | Assurant, Inc., together with its subsidiaries, provides lifestyle and housing solutions that support, protect, and connect consumer purchases in North America, Latin America, Europe, and the Asia Pacific. The company … |
| RYAN | Ryan Specialty Group Holdings, Inc. operates as a service provider of specialty products and solutions for insurance brokers, agents, and carriers. It offers distribution, underwriting, product development, administration, and risk … |
| NMIH | NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services; and outsourced loan review services to mortgage loan originators. It serves … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
🥇
MGIC
A-Score
1-Year Total Return ->
🥈
Radian Group
A-Score
1-Year Total Return ->
🥉
NMI Holdings
A-Score
1-Year Total Return ->
4
Assurant
A-Score
1-Year Total Return ->
5
First American
A-Score
1-Year Total Return ->
6
