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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 1.37
FAF's Cash-to-Debt is ranked lower than
59% of the 68 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 2.35 vs. FAF: 1.37 )
Ranked among companies with meaningful Cash-to-Debt only.
FAF' s Cash-to-Debt Range Over the Past 10 Years
Min: 1.37  Med: 2.45 Max: 2.96
Current: 1.37
1.37
2.96
Equity-to-Asset 0.34
FAF's Equity-to-Asset is ranked higher than
51% of the 68 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.33 vs. FAF: 0.34 )
Ranked among companies with meaningful Equity-to-Asset only.
FAF' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.33  Med: 0.35 Max: 0.39
Current: 0.34
0.33
0.39
Interest Coverage 14.83
FAF's Interest Coverage is ranked lower than
58% of the 80 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 24.38 vs. FAF: 14.83 )
Ranked among companies with meaningful Interest Coverage only.
FAF' s Interest Coverage Range Over the Past 10 Years
Min: 10.31  Med: 14.85 Max: 51.56
Current: 14.83
10.31
51.56
Piotroski F-Score: 5
Beneish M-Score: -2.26
WACC vs ROIC
5.76%
14.18%
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 : 7/10

vs
industry
vs
history
Operating Margin % 8.57
FAF's Operating Margin % is ranked lower than
58% of the 67 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 9.82 vs. FAF: 8.57 )
Ranked among companies with meaningful Operating Margin % only.
FAF' s Operating Margin % Range Over the Past 10 Years
Min: -3.44  Med: 5.85 Max: 10.29
Current: 8.57
-3.44
10.29
Net Margin % 6.15
FAF's Net Margin % is ranked lower than
68% of the 68 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 8.26 vs. FAF: 6.15 )
Ranked among companies with meaningful Net Margin % only.
FAF' s Net Margin % Range Over the Past 10 Years
Min: -2.35  Med: 3.52 Max: 6.63
Current: 6.15
-2.35
6.63
ROE % 11.77
FAF's ROE % is ranked higher than
65% of the 68 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 9.49 vs. FAF: 11.77 )
Ranked among companies with meaningful ROE % only.
FAF' s ROE % Range Over the Past 10 Years
Min: -7.41  Med: 7.07 Max: 13.76
Current: 11.77
-7.41
13.76
ROA % 3.95
FAF's ROA % is ranked higher than
66% of the 68 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 2.50 vs. FAF: 3.95 )
Ranked among companies with meaningful ROA % only.
FAF' s ROA % Range Over the Past 10 Years
Min: -2.67  Med: 2.61 Max: 5.28
Current: 3.95
-2.67
5.28
3-Year Revenue Growth Rate 3.40
FAF's 3-Year Revenue Growth Rate is ranked higher than
50% of the 56 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 3.40 vs. FAF: 3.40 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
FAF' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: 0  Med: 3.4 Max: 7.3
Current: 3.4
0
7.3
3-Year EBITDA Growth Rate 14.20
FAF's 3-Year EBITDA Growth Rate is ranked higher than
74% of the 50 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 2.50 vs. FAF: 14.20 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
FAF' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: 0  Med: 8.3 Max: 26.9
Current: 14.2
0
26.9
3-Year EPS without NRI Growth Rate 21.80
FAF's 3-Year EPS without NRI Growth Rate is ranked higher than
89% of the 47 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.10 vs. FAF: 21.80 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
FAF' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: 0  Med: 12.5 Max: 43.3
Current: 21.8
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: 2017-05-09 Est.)


Revenue & Net Income
Equity & Asset
Operating Cash Flow & Free Cash Flow
Operating 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%)
David Dreman 530 sh (unchged)
Chuck Royce 84,900 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

Joel Greenblatt 8,866 sh (New)
David Dreman 10,784 sh (+1934.72%)
Jim Simons 539,762 sh (+264.46%)
Paul Tudor Jones 35,507 sh (+42.62%)
Mariko Gordon 61,317 sh (+29.05%)
John Rogers 5,511,941 sh (+0.07%)
Ken Fisher 1,446,490 sh (-1.56%)
Chuck Royce 81,800 sh (-3.65%)
Jeremy Grantham 231,231 sh (-35.59%)
» 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:AGO, NYSE:RDN, NYSE:MTG, OTCPK:LCSHF, NYSE:OB, NYSE:EIG, NAS:GLRE, NAS:AMBC, NAS:TRUP, NAS:ITIC, OTCPK:SYCRF, NYSE:FAC, OTCPK:ACMTA, OTCPK:MPFRY, 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 provides title insurance, closing and/or escrow services, and related services in connection with residential and commercial real estate transactions worldwide. The company also has a specialty insurance segment that issues property and casualty insurance policies and sells home warranty products. More than 75% of the company's total revenue comes from insurance premiums and escrow fees in the title insurance segment. More than 90% of the company's revenue is from United States operations. The company also operates in Canada, the United Kingdom, and Australia.

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
PE Ratio 12.67
FAF's PE Ratio is ranked higher than
55% of the 82 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 12.54 vs. FAF: 12.67 )
Ranked among companies with meaningful PE Ratio only.
FAF' s PE Ratio Range Over the Past 10 Years
Min: 8.46  Med: 13.79 Max: 21.25
Current: 12.67
8.46
21.25
PE Ratio without NRI 12.67
FAF's PE Ratio without NRI is ranked higher than
57% of the 74 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 12.53 vs. FAF: 12.67 )
Ranked among companies with meaningful PE Ratio without NRI only.
FAF' s PE Ratio without NRI Range Over the Past 10 Years
Min: 8.46  Med: 13.79 Max: 21.25
Current: 12.67
8.46
21.25
PB Ratio 1.44
FAF's PB Ratio is ranked lower than
68% of the 78 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.05 vs. FAF: 1.44 )
Ranked among companies with meaningful PB Ratio only.
FAF' s PB Ratio Range Over the Past 10 Years
Min: 0.56  Med: 1.14 Max: 1.7
Current: 1.44
0.56
1.7
PS Ratio 0.76
FAF's PS Ratio is ranked higher than
72% of the 80 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.54 vs. FAF: 0.76 )
Ranked among companies with meaningful PS Ratio only.
FAF' s PS Ratio Range Over the Past 10 Years
Min: 0.29  Med: 0.59 Max: 0.92
Current: 0.76
0.29
0.92
Price-to-Free-Cash-Flow 12.17
FAF's Price-to-Free-Cash-Flow is ranked higher than
53% of the 51 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 11.99 vs. FAF: 12.17 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
FAF' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 5.75  Med: 12.43 Max: 43.95
Current: 12.17
5.75
43.95
Price-to-Operating-Cash-Flow 8.88
FAF's Price-to-Operating-Cash-Flow is ranked higher than
50% of the 66 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 8.75 vs. FAF: 8.88 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
FAF' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 4.72  Med: 8.85 Max: 13.84
Current: 8.88
4.72
13.84
EV-to-EBIT 7.90
FAF's EV-to-EBIT is ranked higher than
54% of the 96 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 8.00 vs. FAF: 7.90 )
Ranked among companies with meaningful EV-to-EBIT only.
FAF' s EV-to-EBIT Range Over the Past 10 Years
Min: 4.1  Med: 7.1 Max: 10.7
Current: 7.9
4.1
10.7
EV-to-EBITDA 6.63
FAF's EV-to-EBITDA is ranked higher than
70% of the 96 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 7.50 vs. FAF: 6.63 )
Ranked among companies with meaningful EV-to-EBITDA only.
FAF' s EV-to-EBITDA Range Over the Past 10 Years
Min: 3.3  Med: 5.6 Max: 8
Current: 6.63
3.3
8
PEG Ratio 0.82
FAF's PEG Ratio is ranked lower than
59% of the 27 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.74 vs. FAF: 0.82 )
Ranked among companies with meaningful PEG Ratio only.
FAF' s PEG Ratio Range Over the Past 10 Years
Min: 0.71  Med: 0.96 Max: 1.43
Current: 0.82
0.71
1.43

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 3.27
FAF's Dividend Yield % is ranked lower than
61% of the 110 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 4.18 vs. FAF: 3.27 )
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: 3.36
Current: 3.27
0.4
3.36
Dividend Payout Ratio 0.39
FAF's Dividend Payout Ratio is ranked higher than
68% of the 57 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.36 vs. FAF: 0.39 )
Ranked among companies with meaningful Dividend Payout Ratio only.
FAF' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.13  Med: 0.33 Max: 0.39
Current: 0.39
0.13
0.39
3-Year Dividend Growth Rate 35.70
FAF's 3-Year Dividend Growth Rate is ranked higher than
91% of the 35 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 8.40 vs. FAF: 35.70 )
Ranked among companies with meaningful 3-Year Dividend Growth Rate only.
FAF' s 3-Year Dividend Growth Rate Range Over the Past 10 Years
Min: 0  Med: 35.7 Max: 51.8
Current: 35.7
0
51.8
Forward Dividend Yield % 3.49
FAF's Forward Dividend Yield % is ranked lower than
56% of the 101 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 4.39 vs. FAF: 3.49 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 17.34
FAF's 5-Year Yield-on-Cost % is ranked higher than
98% of the 109 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 5.00 vs. FAF: 17.34 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
FAF' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.12  Med: 9.97 Max: 17.81
Current: 17.34
2.12
17.81
3-Year Average Share Buyback Ratio -1.20
FAF's 3-Year Average Share Buyback Ratio is ranked lower than
75% of the 40 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.10 vs. FAF: -1.20 )
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: -1.2  Med: -0.6 Max: 0
Current: -1.2
-1.2
0

Valuation & Return

vs
industry
vs
history
Price-to-Tangible-Book 2.24
FAF's Price-to-Tangible-Book is ranked lower than
78% of the 74 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.18 vs. FAF: 2.24 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
FAF' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 1.16  Med: 1.91 Max: 2.34
Current: 2.24
1.16
2.34
Price-to-Intrinsic-Value-Projected-FCF 0.82
FAF's Price-to-Intrinsic-Value-Projected-FCF is ranked lower than
57% of the 37 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.61 vs. FAF: 0.82 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
FAF' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.77  Med: 0.86 Max: 0.92
Current: 0.82
0.77
0.92
Price-to-Median-PS-Value 1.32
FAF's Price-to-Median-PS-Value is ranked lower than
73% of the 71 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.03 vs. FAF: 1.32 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
FAF' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.6  Med: 1.06 Max: 1.33
Current: 1.32
0.6
1.33
Price-to-Peter-Lynch-Fair-Value 1.05
FAF's Price-to-Peter-Lynch-Fair-Value is ranked lower than
63% of the 19 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.74 vs. FAF: 1.05 )
Ranked among companies with meaningful Price-to-Peter-Lynch-Fair-Value only.
FAF' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.88  Med: 0.98 Max: 1.31
Current: 1.05
0.88
1.31
Price-to-Graham-Number 1.12
FAF's Price-to-Graham-Number is ranked lower than
68% of the 63 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.85 vs. FAF: 1.12 )
Ranked among companies with meaningful Price-to-Graham-Number only.
FAF' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.83  Med: 1.05 Max: 1.28
Current: 1.12
0.83
1.28
Earnings Yield (Greenblatt) % 12.63
FAF's Earnings Yield (Greenblatt) % is ranked higher than
56% of the 107 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 12.50 vs. FAF: 12.63 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
FAF' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: 9.3  Med: 14.1 Max: 24.6
Current: 12.63
9.3
24.6
Forward Rate of Return (Yacktman) % 20.07
FAF's Forward Rate of Return (Yacktman) % is ranked higher than
53% of the 32 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 17.63 vs. FAF: 20.07 )
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: 21.15 Max: 28.8
Current: 20.07
3.8
28.8

More Statistics

Revenue (TTM) (Mil) $5,576
EPS (TTM) $ 3.08
Beta0.47
Short Percentage of Float3.29%
52-Week Range $34.63 - 43.55
Shares Outstanding (Mil)109.97
» More Articles for FAF

Headlines

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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 
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Assurant's 67% Dividend Hike Makes a Fairly Valued Stock Sep 14 2015 

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