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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 : 7/10

vs
industry
vs
history
Cash to Debt 1.53
FAF's Cash to Debt is ranked lower than
61% of the 66 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 4.67 vs. FAF: 1.53 )
Ranked among companies with meaningful Cash to Debt only.
FAF' s Cash to Debt Range Over the Past 10 Years
Min: 1.39  Med: 2.49 Max: N/A
Current: 1.53
Equity to Asset 0.33
FAF's Equity to Asset is ranked higher than
53% of the 66 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.32 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: 0.36 Max: 0.39
Current: 0.33
0.32
0.39
Interest Coverage 15.65
FAF's Interest Coverage is ranked lower than
65% of the 49 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 39.99 vs. FAF: 15.65 )
Ranked among companies with meaningful Interest Coverage only.
FAF' s Interest Coverage Range Over the Past 10 Years
Min: 10.31  Med: 16.23 Max: 51.56
Current: 15.65
10.31
51.56
F-Score: 4
WACC vs ROIC
7.79%
13.76%
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 (%) 8.65
FAF's Operating margin (%) is ranked lower than
52% of the 65 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 9.83 vs. FAF: 8.65 )
Ranked among companies with meaningful Operating margin (%) only.
FAF' s Operating margin (%) Range Over the Past 10 Years
Min: -3.44  Med: 5.24 Max: 10.29
Current: 8.65
-3.44
10.29
Net-margin (%) 5.66
FAF's Net-margin (%) is ranked lower than
62% of the 66 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 8.73 vs. FAF: 5.66 )
Ranked among companies with meaningful Net-margin (%) only.
FAF' s Net-margin (%) Range Over the Past 10 Years
Min: -2.35  Med: 3.15 Max: 6.63
Current: 5.66
-2.35
6.63
ROE (%) 10.95
FAF's ROE (%) is ranked higher than
62% of the 66 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 9.45 vs. FAF: 10.95 )
Ranked among companies with meaningful ROE (%) only.
FAF' s ROE (%) Range Over the Past 10 Years
Min: -4.4  Med: 6.39 Max: 13.76
Current: 10.95
-4.4
13.76
ROA (%) 3.65
FAF's ROA (%) is ranked higher than
67% of the 66 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 2.28 vs. FAF: 3.65 )
Ranked among companies with meaningful ROA (%) only.
FAF' s ROA (%) Range Over the Past 10 Years
Min: -1.52  Med: 2.25 Max: 5.27
Current: 3.65
-1.52
5.27
Revenue Growth (3Y)(%) 6.40
FAF's Revenue Growth (3Y)(%) is ranked lower than
59% of the 49 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 8.50 vs. FAF: 6.40 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
FAF' s Revenue Growth (3Y)(%) Range Over the Past 10 Years
Min: 0  Med: 2.40 Max: 7.3
Current: 6.4
0
7.3
EBITDA Growth (3Y)(%) 26.90
FAF's EBITDA Growth (3Y)(%) is ranked higher than
76% of the 42 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 12.50 vs. FAF: 26.90 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
FAF' s EBITDA Growth (3Y)(%) Range Over the Past 10 Years
Min: 0  Med: 8.40 Max: 26.9
Current: 26.9
0
26.9
EPS Growth (3Y)(%) 43.20
FAF's EPS Growth (3Y)(%) is ranked higher than
76% of the 41 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 14.60 vs. FAF: 43.20 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
FAF' s EPS Growth (3Y)(%) Range Over the Past 10 Years
Min: 0  Med: 12.40 Max: 43.2
Current: 43.2
0
43.2
» FAF's 10-Y Financials

Financials (Next Earnings Date: 2016-02-11)


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

» Details

Guru Trades

Q1 2015

FAF Guru Trades in Q1 2015

Paul Tudor Jones 26,720 sh (New)
Jim Simons 365,426 sh (+1.31%)
First Eagle Investment Sold Out
Chuck Royce 98,961 sh (-10.17%)
RS Investment Management 2,876,545 sh (-19.40%)
John Rogers 7,703,312 sh (-20.72%)
Arnold Schneider 358,747 sh (-22.00%)
John Keeley 494,920 sh (-30.40%)
» More
Q2 2015

FAF Guru Trades in Q2 2015

Jim Simons Sold Out
John Rogers 7,685,327 sh (-0.23%)
John Keeley 478,810 sh (-3.26%)
Chuck Royce 93,961 sh (-5.05%)
RS Investment Management 2,488,065 sh (-13.51%)
Paul Tudor Jones 15,600 sh (-41.62%)
Arnold Schneider 124,087 sh (-65.41%)
» More
Q3 2015

FAF Guru Trades in Q3 2015

Jeremy Grantham 261,325 sh (New)
Ken Fisher 571,175 sh (New)
Paul Tudor Jones 21,900 sh (+40.38%)
RS Investment Management 2,533,308 sh (+1.82%)
Chuck Royce 93,961 sh (unchged)
John Keeley Sold Out
Arnold Schneider Sold Out
John Rogers 6,934,335 sh (-9.77%)
» More
Q4 2015

FAF Guru Trades in Q4 2015

Ken Fisher 864,783 sh (+51.40%)
» 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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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

Top Ranked Articles about First American Financial Corp

John Rogers Comments on First American Financial Corp. Guru stock highlight
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. Read more...
John Rogers Comments on First American Financial Corp Guru stock highlight
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. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 12.50
FAF's P/E(ttm) is ranked lower than
73% of the 95 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 9.47 vs. FAF: 12.50 )
Ranked among companies with meaningful P/E(ttm) only.
FAF' s P/E(ttm) Range Over the Past 10 Years
Min: 8.46  Med: 14.47 Max: 21.1
Current: 12.5
8.46
21.1
Forward P/E 11.06
FAF's Forward P/E is ranked lower than
76% of the 78 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 9.79 vs. FAF: 11.06 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 12.50
FAF's PE(NRI) is ranked lower than
68% of the 74 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 9.66 vs. FAF: 12.50 )
Ranked among companies with meaningful PE(NRI) only.
FAF' s PE(NRI) Range Over the Past 10 Years
Min: 8.46  Med: 14.47 Max: 20.96
Current: 12.5
8.46
20.96
P/B 1.32
FAF's P/B is ranked lower than
83% of the 95 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.94 vs. FAF: 1.32 )
Ranked among companies with meaningful P/B only.
FAF' s P/B Range Over the Past 10 Years
Min: 0.56  Med: 1.08 Max: 1.7
Current: 1.32
0.56
1.7
P/S 0.71
FAF's P/S is ranked higher than
64% of the 95 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.98 vs. FAF: 0.71 )
Ranked among companies with meaningful P/S only.
FAF' s P/S Range Over the Past 10 Years
Min: 0.29  Med: 0.56 Max: 0.92
Current: 0.71
0.29
0.92
PFCF 8.52
FAF's PFCF is ranked higher than
56% of the 55 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 11.81 vs. FAF: 8.52 )
Ranked among companies with meaningful PFCF only.
FAF' s PFCF Range Over the Past 10 Years
Min: 5.77  Med: 13.36 Max: 41.98
Current: 8.52
5.77
41.98
POCF 6.59
FAF's POCF is ranked higher than
66% of the 86 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 10.27 vs. FAF: 6.59 )
Ranked among companies with meaningful POCF only.
FAF' s POCF Range Over the Past 10 Years
Min: 4.73  Med: 9.19 Max: 13.54
Current: 6.59
4.73
13.54
EV-to-EBIT 6.93
FAF's EV-to-EBIT is ranked higher than
53% of the 95 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 6.93 vs. FAF: 6.93 )
Ranked among companies with meaningful EV-to-EBIT only.
FAF' s EV-to-EBIT Range Over the Past 10 Years
Min: 4.1  Med: 6.80 Max: 10.7
Current: 6.93
4.1
10.7
EV-to-EBITDA 5.88
FAF's EV-to-EBITDA is ranked higher than
56% of the 95 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 6.82 vs. FAF: 5.88 )
Ranked among companies with meaningful EV-to-EBITDA only.
FAF' s EV-to-EBITDA Range Over the Past 10 Years
Min: 3.3  Med: 4.90 Max: 8
Current: 5.88
3.3
8
PEG 1.25
FAF's PEG is ranked higher than
50% of the 26 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.25 vs. FAF: 1.25 )
Ranked among companies with meaningful PEG only.
FAF' s PEG Range Over the Past 10 Years
Min: 0.71  Med: 0.98 Max: 1.41
Current: 1.25
0.71
1.41

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.06
FAF's Dividend Yield is ranked lower than
73% of the 94 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 4.27 vs. FAF: 3.06 )
Ranked among companies with meaningful Dividend Yield only.
FAF' s Dividend Yield Range Over the Past 10 Years
Min: 0.4  Med: 1.76 Max: 3.08
Current: 3.06
0.4
3.08
Dividend Payout 0.38
FAF's Dividend Payout is ranked higher than
51% of the 57 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.38 vs. FAF: 0.38 )
Ranked among companies with meaningful Dividend Payout only.
FAF' s Dividend Payout Range Over the Past 10 Years
Min: 0.08  Med: 0.28 Max: 0.74
Current: 0.38
0.08
0.74
Dividend Growth (3y) 51.80
FAF's Dividend Growth (3y) is ranked higher than
94% of the 32 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 6.30 vs. FAF: 51.80 )
Ranked among companies with meaningful Dividend Growth (3y) only.
FAF' s Dividend Growth (3y) Range Over the Past 10 Years
Min: 0  Med: 0.00 Max: 51.8
Current: 51.8
0
51.8
Forward Dividend Yield 3.18
FAF's Forward Dividend Yield is ranked lower than
64% of the 94 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 4.38 vs. FAF: 3.18 )
Ranked among companies with meaningful Forward Dividend Yield only.
N/A
Yield on cost (5-Year) 3.05
FAF's Yield on cost (5-Year) is ranked lower than
92% of the 93 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 5.74 vs. FAF: 3.05 )
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: 0.4  Med: 1.76 Max: 3.08
Current: 3.05
0.4
3.08
3-Year Average Share Buyback Ratio -0.60
FAF's 3-Year Average Share Buyback Ratio is ranked lower than
73% of the 37 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: -1.4  Med: -0.60 Max: 0
Current: -0.6
-1.4
0

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.13
FAF's Price/Tangible Book is ranked lower than
88% of the 94 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.10 vs. FAF: 2.13 )
Ranked among companies with meaningful Price/Tangible Book only.
FAF' s Price/Tangible Book Range Over the Past 10 Years
Min: 1.16  Med: 1.71 Max: 2.54
Current: 2.13
1.16
2.54
Price/Projected FCF 0.82
FAF's Price/Projected FCF is ranked lower than
56% of the 55 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.75 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: 0.83  Med: 0.98 Max: 1.03
Current: 0.82
0.83
1.03
Price/Median PS Value 1.26
FAF's Price/Median PS Value is ranked lower than
82% of the 95 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.00 vs. FAF: 1.26 )
Ranked among companies with meaningful Price/Median PS Value only.
FAF' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.59  Med: 0.97 Max: 1.51
Current: 1.26
0.59
1.51
Price/Peter Lynch Fair Value 0.81
FAF's Price/Peter Lynch Fair Value is ranked lower than
58% of the 40 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.94 vs. FAF: 0.81 )
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: 0.98 Max: 1.29
Current: 0.81
0.74
1.29
Price/Graham Number 1.09
FAF's Price/Graham Number is ranked lower than
79% of the 90 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.75 vs. FAF: 1.09 )
Ranked among companies with meaningful Price/Graham Number only.
FAF' s Price/Graham Number Range Over the Past 10 Years
Min: 0.76  Med: 0.96 Max: 1.31
Current: 1.09
0.76
1.31
Earnings Yield (Greenblatt) (%) 14.34
FAF's Earnings Yield (Greenblatt) (%) is ranked higher than
68% of the 63 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 10.80 vs. FAF: 14.34 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
FAF' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 9.3  Med: 14.70 Max: 24.6
Current: 14.34
9.3
24.6
Forward Rate of Return (Yacktman) (%) 22.46
FAF's Forward Rate of Return (Yacktman) (%) is ranked higher than
61% of the 31 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 17.87 vs. FAF: 22.46 )
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: 20.25 Max: 28.8
Current: 22.46
3.8
28.8

More Statistics

Revenue(Mil) $5074
EPS $ 2.62
Beta0.87
Short Percentage of Float5.07%
52-Week Range $31.74 - 43.16
Shares Outstanding(Mil)108.74

Business Description

Industry: Insurance - Specialty » Insurance - Specialty
Compare: » details
Traded in other countries:Y1F.Germany,
First American Financial Corp was incorporated in the state of Delaware in January 2008. The Company along with 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, 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. In addition, its corporate function consists of certain financing facilities as well as the corporate services that support its business operations. The Company's competitors include Fidelity National Financial, Inc., Stewart Title Guaranty Company and Old Republic International Corporation. Many of its subsidiaries are subject to extensive regulation by applicable domestic or foreign regulatory agencies. In addition, its insurers are subject to the laws of other jurisdictions in which they transact business.
» More Articles for FAF

Headlines

Articles On GuruFocus.com
Weekly CEO Sales Highlight Nov 22 2015 
John Rogers Comments on First American Financial Corp. Nov 20 2015 
John Rogers Comments on First American Financial Corp Oct 20 2015 
John Rogers' Ariel Appreciation Fund Third Quarter Commentary Oct 20 2015 
Stake Reduction Have Greatest Impact on Arnold Schneider's Portfolio Sep 14 2015 
Assurant's 67% Dividend Hike Makes a Fairly Valued Stock Sep 14 2015 
John Rogers Ariel Funds Q4 2014 Commentary Jan 18 2015 
Ariel Investments' John Rogers Discusses KKR, First American, Dun & Bradstreet Jun 03 2014 
Ariel Capital Management and John Rogers' Top Five Stocks May 14 2014 
Ariel Capital and John Rogers' Top Five Fourth Quarter Positions Feb 19 2014 

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