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Also traded in: Germany

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 1.96
FAF's Cash to Debt is ranked lower than
54% of the 72 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 2.63 vs. FAF: 1.96 )
Ranked among companies with meaningful Cash to Debt only.
FAF' s Cash to Debt Range Over the Past 10 Years
Min: 1.39  Med: 2.43 Max: N/A
Current: 1.96
Equity to Asset 0.33
FAF's Equity to Asset is ranked higher than
51% of the 72 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.33 vs. FAF: 0.33 )
Ranked among companies with meaningful Equity to Asset only.
FAF' s Equity to Asset Range Over the Past 10 Years
Min: 0.32  Med: 0.35 Max: 0.39
Current: 0.33
0.32
0.39
Interest Coverage 16.69
FAF's Interest Coverage is ranked lower than
65% of the 69 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 355.50 vs. FAF: 16.69 )
Ranked among companies with meaningful Interest Coverage only.
FAF' s Interest Coverage Range Over the Past 10 Years
Min: 10.31  Med: 14.87 Max: 51.56
Current: 16.69
10.31
51.56
F-Score: 4
M-Score: -2.43
WACC vs ROIC
6.15%
14.64%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) 9.45
FAF's Operating margin (%) is ranked lower than
58% of the 71 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 10.86 vs. FAF: 9.45 )
Ranked among companies with meaningful Operating margin (%) only.
FAF' s Operating margin (%) Range Over the Past 10 Years
Min: -3.44  Med: 5.43 Max: 10.29
Current: 9.45
-3.44
10.29
Net-margin (%) 6.33
FAF's Net-margin (%) is ranked lower than
64% of the 72 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 10.01 vs. FAF: 6.33 )
Ranked among companies with meaningful Net-margin (%) only.
FAF' s Net-margin (%) Range Over the Past 10 Years
Min: -2.35  Med: 3.27 Max: 6.63
Current: 6.33
-2.35
6.63
ROE (%) 12.05
FAF's ROE (%) is ranked higher than
64% of the 72 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 10.00 vs. FAF: 12.05 )
Ranked among companies with meaningful ROE (%) only.
FAF' s ROE (%) Range Over the Past 10 Years
Min: -7.41  Med: 6.39 Max: 13.76
Current: 12.05
-7.41
13.76
ROA (%) 4.02
FAF's ROA (%) is ranked higher than
67% of the 73 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 2.79 vs. FAF: 4.02 )
Ranked among companies with meaningful ROA (%) only.
FAF' s ROA (%) Range Over the Past 10 Years
Min: -2.67  Med: 2.25 Max: 5.28
Current: 4.02
-2.67
5.28
Revenue Growth (3Y)(%) 4.00
FAF's Revenue Growth (3Y)(%) is ranked lower than
51% of the 57 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 4.50 vs. FAF: 4.00 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
FAF' s Revenue Growth (3Y)(%) Range Over the Past 10 Years
Min: 0  Med: 3.25 Max: 7.3
Current: 4
0
7.3
EBITDA Growth (3Y)(%) -0.60
FAF's EBITDA Growth (3Y)(%) is ranked lower than
55% of the 47 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 4.90 vs. FAF: -0.60 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
FAF' s EBITDA Growth (3Y)(%) Range Over the Past 10 Years
Min: 0  Med: 3.85 Max: 26.9
Current: -0.6
0
26.9
EPS Growth (3Y)(%) -1.80
FAF's EPS Growth (3Y)(%) is ranked lower than
60% of the 45 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 4.00 vs. FAF: -1.80 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
FAF' s EPS Growth (3Y)(%) Range Over the Past 10 Years
Min: 0  Med: 5.35 Max: 43.3
Current: -1.8
0
43.3
GuruFocus has detected 1 Warning Sign with First American Financial Corp $FAF.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» FAF's 10-Y Financials

Financials (Next Earnings Date: 2017-02-09)


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow
Oprt. Cash Flow & Net Income

» Details

Guru Trades

Q1 2016

FAF Guru Trades in Q1 2016

Jim Simons 238,800 sh (New)
David Dreman 530 sh (New)
Jeremy Grantham 542,625 sh (+72.63%)
Ken Fisher 1,386,341 sh (+60.31%)
John Rogers 5,981,316 sh (-2.65%)
Chuck Royce 84,900 sh (-9.64%)
RS Investment Management 1,533,942 sh (-11.51%)
Paul Tudor Jones 11,100 sh (-18.38%)
» More
Q2 2016

FAF Guru Trades in Q2 2016

Paul Tudor Jones 12,800 sh (+15.32%)
Ken Fisher 1,497,714 sh (+8.03%)
Jeremy Grantham 550,301 sh (+1.41%)
Chuck Royce 84,900 sh (unchged)
David Dreman 530 sh (unchged)
John Rogers 5,666,824 sh (-5.26%)
RS Investment Management 779,424 sh (-49.19%)
Jim Simons 35,300 sh (-85.22%)
» More
Q3 2016

FAF Guru Trades in Q3 2016

Mariko Gordon 47,515 sh (New)
Jim Simons 148,100 sh (+319.55%)
Paul Tudor Jones 24,897 sh (+94.51%)
Chuck Royce 84,900 sh (unchged)
David Dreman 530 sh (unchged)
Ken Fisher 1,469,419 sh (-1.89%)
John Rogers 5,508,306 sh (-2.80%)
Jeremy Grantham 358,981 sh (-34.77%)
» More
Q4 2016

FAF Guru Trades in Q4 2016

Ken Fisher 1,446,490 sh (-1.56%)
» More
» Details

Insider Trades

Latest Guru Trades with FAF

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Business Description

Industry: Insurance - Specialty » Insurance - Specialty    NAICS: 524127    SIC: 6361
Compare:NYSE:RDN, NYSE:MTG, NYSE:AGO, OTCPK:GMICF, OTCPK:LCSHF, NYSE:OB, NYSE:EIG, NAS:AMBC, NAS:GLRE, NAS:TRUP, NAS:ITIC, OTCPK:SYCRF, NYSE:FAC, NYSE:FNF » details
Traded in other countries:Y1F.Germany,
First American Financial Corp is engaged in the business of providing financial services through its title insurance and services segment and its specialty insurance segment.

First American Financial Corp was incorporated in the state of Delaware in January 2008. The Company, through its subsidiaries, is engaged in the business of providing financial services through its title insurance and services segment and its specialty insurance segment. The title insurance and services segment provides title insurance, closing and/or escrow services and similar or related services domestically and internationally in connection with residential and commercial real estate transactions. It also provides products, services and solutions involving the use of real property related data, including data derived from its proprietary database, which are designed to mitigate risk or otherwise facilitate real estate transactions. It maintains, manages and provides access to title plant records and images and, in addition, provides banking, trust and investment advisory services. The specialty insurance segment issues property and casualty insurance policies and sells home warranty products. The property and casualty insurance business provides insurance coverage to residential homeowners and renters for liability losses and typical hazards such as fire, theft, vandalism and other types of property damage. This business is licensed to issue policies in all 50 states and the District of Columbia and actively issues policies in 46 states. In certain markets it also offers preferred risk auto insurance to compete with other carriers offering bundled home and auto insurance. The home warranty business provides 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. Its nationwide competitors in the principal markets include Fidelity National Financial, Inc., Stewart Title Guaranty Company, Old Republic International Corporation and their affiliates. The Company is subject to regulation by various federal, state and local regulatory authorities.

Guru Investment Theses on First American Financial Corp

John Rogers Comments on First American Financial Corp. - Nov 20, 2015

Mortgage insurer First American Financial Corp. (NYSE:FAF) gained +5.68% due to a strong earnings report. Wall Street anticipated solid revenue growth but once again underappreciated the company’s powerful operating leverage. As a result, the company’s $0.83 per share in operating earnings smashed the $0.67 consensus estimate. We continue to think the company is in very good shape in a soft but improving housing market and can do even better if housing fully recovers.



From John Rogers (Trades, Portfolio)' Ariel Discovery Fund portfolio snapshot third quarter 2015.

Check out John Rogers latest stock trades

John Rogers Comments on First American Financial Corp - Oct 20, 2015

Some of our holdings held up relatively well in the very difficult quarter. Mortgage insurer First American Financial Corp. (NYSE:FAF) gained +5.68% due to a strong earnings report. Wall Street anticipated solid revenue growth but once again underappreciated the company’s powerful operating leverage. As a result, the company’s $0.83 per share in operating earnings smashed the $0.67 consensus estimate. We continue to think the company is in very good shape in a soft but improving housing market and can do even better if housing fully recovers.

From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund Third Quarter 2015 shareholder letter.

Check out John Rogers latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 11.98
FAF's P/E(ttm) is ranked higher than
60% of the 65 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 12.43 vs. FAF: 11.98 )
Ranked among companies with meaningful P/E(ttm) only.
FAF' s P/E(ttm) Range Over the Past 10 Years
Min: 8.46  Med: 13.87 Max: 21.25
Current: 11.98
8.46
21.25
PE(NRI) 11.98
FAF's PE(NRI) is ranked higher than
59% of the 66 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 12.37 vs. FAF: 11.98 )
Ranked among companies with meaningful PE(NRI) only.
FAF' s PE(NRI) Range Over the Past 10 Years
Min: 8.46  Med: 13.87 Max: 21.25
Current: 11.98
8.46
21.25
P/B 1.36
FAF's P/B is ranked lower than
61% of the 70 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.10 vs. FAF: 1.36 )
Ranked among companies with meaningful P/B only.
FAF' s P/B Range Over the Past 10 Years
Min: 0.56  Med: 1.13 Max: 1.7
Current: 1.36
0.56
1.7
P/S 0.75
FAF's P/S is ranked higher than
73% of the 70 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.58 vs. FAF: 0.75 )
Ranked among companies with meaningful P/S only.
FAF' s P/S Range Over the Past 10 Years
Min: 0.29  Med: 0.59 Max: 0.92
Current: 0.75
0.29
0.92
PFCF 12.96
FAF's PFCF is ranked higher than
53% of the 34 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 13.72 vs. FAF: 12.96 )
Ranked among companies with meaningful PFCF only.
FAF' s PFCF Range Over the Past 10 Years
Min: 5.75  Med: 12.92 Max: 43.95
Current: 12.96
5.75
43.95
POCF 9.07
FAF's POCF is ranked higher than
53% of the 49 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 9.32 vs. FAF: 9.07 )
Ranked among companies with meaningful POCF only.
FAF' s POCF Range Over the Past 10 Years
Min: 4.72  Med: 9.02 Max: 13.84
Current: 9.07
4.72
13.84
EV-to-EBIT 6.21
FAF's EV-to-EBIT is ranked higher than
71% of the 58 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 8.47 vs. FAF: 6.21 )
Ranked among companies with meaningful EV-to-EBIT only.
FAF' s EV-to-EBIT Range Over the Past 10 Years
Min: 4.1  Med: 6.9 Max: 10.7
Current: 6.21
4.1
10.7
EV-to-EBITDA 5.30
FAF's EV-to-EBITDA is ranked higher than
74% of the 58 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 7.36 vs. FAF: 5.30 )
Ranked among companies with meaningful EV-to-EBITDA only.
FAF' s EV-to-EBITDA Range Over the Past 10 Years
Min: 3.3  Med: 5.4 Max: 8
Current: 5.3
3.3
8
PEG 0.87
FAF's PEG is ranked lower than
52% of the 27 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.86 vs. FAF: 0.87 )
Ranked among companies with meaningful PEG only.
FAF' s PEG Range Over the Past 10 Years
Min: 0.71  Med: 0.93 Max: 1.43
Current: 0.87
0.71
1.43

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.22
FAF's Dividend Yield is ranked lower than
61% of the 109 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 4.57 vs. FAF: 3.22 )
Ranked among companies with meaningful Dividend Yield only.
FAF' s Dividend Yield Range Over the Past 10 Years
Min: 0.4  Med: 1.88 Max: 3.27
Current: 3.22
0.4
3.27
Dividend Payout 0.36
FAF's Dividend Payout is ranked higher than
67% of the 55 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.36 vs. FAF: 0.36 )
Ranked among companies with meaningful Dividend Payout only.
FAF' s Dividend Payout Range Over the Past 10 Years
Min: 0.13  Med: 0.31 Max: 0.39
Current: 0.36
0.13
0.39
Dividend Growth (3y) 40.60
FAF's Dividend Growth (3y) is ranked higher than
94% of the 31 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 10.10 vs. FAF: 40.60 )
Ranked among companies with meaningful Dividend Growth (3y) only.
FAF' s Dividend Growth (3y) Range Over the Past 10 Years
Min: 0  Med: 19.35 Max: 51.8
Current: 40.6
0
51.8
Forward Dividend Yield 3.61
FAF's Forward Dividend Yield is ranked lower than
53% of the 103 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 4.25 vs. FAF: 3.61 )
Ranked among companies with meaningful Forward Dividend Yield only.
N/A
Yield on cost (5-Year) 19.53
FAF's Yield on cost (5-Year) is ranked higher than
98% of the 107 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 5.45 vs. FAF: 19.53 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
FAF' s Yield on cost (5-Year) Range Over the Past 10 Years
Min: 2.43  Med: 11.4 Max: 19.83
Current: 19.53
2.43
19.83
3-Year Average Share Buyback Ratio -0.60
FAF's 3-Year Average Share Buyback Ratio is ranked lower than
69% of the 39 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.40 vs. FAF: -0.60 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
FAF' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -1  Med: -0.55 Max: 0
Current: -0.6
-1
0

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.11
FAF's Price/Tangible Book is ranked lower than
79% of the 66 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.19 vs. FAF: 2.11 )
Ranked among companies with meaningful Price/Tangible Book only.
FAF' s Price/Tangible Book Range Over the Past 10 Years
Min: 1.16  Med: 1.83 Max: 2.54
Current: 2.11
1.16
2.54
Price/Projected FCF 0.82
FAF's Price/Projected FCF is ranked lower than
66% of the 32 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.56 vs. FAF: 0.82 )
Ranked among companies with meaningful Price/Projected FCF only.
FAF' s Price/Projected FCF Range Over the Past 10 Years
Min: 0.8  Med: 0.93 Max: 1.03
Current: 0.82
0.8
1.03
Price/Median PS Value 1.30
FAF's Price/Median PS Value is ranked lower than
65% of the 57 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.11 vs. FAF: 1.30 )
Ranked among companies with meaningful Price/Median PS Value only.
FAF' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.56  Med: 0.99 Max: 1.43
Current: 1.3
0.56
1.43
Price/Peter Lynch Fair Value 0.84
FAF's Price/Peter Lynch Fair Value is ranked lower than
63% of the 16 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.72 vs. FAF: 0.84 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
FAF' s Price/Peter Lynch Fair Value Range Over the Past 10 Years
Min: 0.74  Med: 0.93 Max: 1.31
Current: 0.84
0.74
1.31
Price/Graham Number 1.07
FAF's Price/Graham Number is ranked lower than
71% of the 55 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.81 vs. FAF: 1.07 )
Ranked among companies with meaningful Price/Graham Number only.
FAF' s Price/Graham Number Range Over the Past 10 Years
Min: 0.76  Med: 1.08 Max: 1.31
Current: 1.07
0.76
1.31
Earnings Yield (Greenblatt) (%) 16.17
FAF's Earnings Yield (Greenblatt) (%) is ranked higher than
76% of the 70 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 10.10 vs. FAF: 16.17 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
FAF' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 9.3  Med: 14.4 Max: 24.6
Current: 16.17
9.3
24.6
Forward Rate of Return (Yacktman) (%) 21.96
FAF's Forward Rate of Return (Yacktman) (%) is ranked higher than
66% of the 32 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 16.44 vs. FAF: 21.96 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
FAF' s Forward Rate of Return (Yacktman) (%) Range Over the Past 10 Years
Min: 3.8  Med: 21.45 Max: 28.8
Current: 21.96
3.8
28.8

More Statistics

Revenue (TTM) (Mil) $5,428
EPS (TTM) $ 3.09
Beta0.56
Short Percentage of Float3.56%
52-Week Range $31.74 - 43.55
Shares Outstanding (Mil)109.82
» More Articles for FAF

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John Rogers Comments on First American Financial Corp Oct 20 2015 
John Rogers' Ariel Appreciation Fund Third Quarter Commentary Oct 20 2015 
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