Switch to:

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 2.17
FAF's Cash to Debt is ranked lower than
54% of the 61 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 3.94 vs. FAF: 2.17 )
Ranked among companies with meaningful Cash to Debt only.
FAF' s 10-Year Cash to Debt Range
Min: 1.05  Med: 1.88 Max: N/A
Current: 2.17
Equity to Asset 0.32
FAF's Equity to Asset is ranked lower than
51% of the 61 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.32 vs. FAF: 0.32 )
Ranked among companies with meaningful Equity to Asset only.
FAF' s 10-Year Equity to Asset Range
Min: 0.32  Med: 0.36 Max: 0.39
Current: 0.32
0.32
0.39
Interest Coverage 18.21
FAF's Interest Coverage is ranked lower than
62% of the 47 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 35.46 vs. FAF: 18.21 )
Ranked among companies with meaningful Interest Coverage only.
FAF' s 10-Year Interest Coverage Range
Min: 10.31  Med: 16.23 Max: 51.56
Current: 18.21
10.31
51.56
F-Score: 4
WACC vs ROIC
8.92%
13.97%
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 (%) 8.88
FAF's Operating margin (%) is ranked lower than
56% of the 62 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 11.16 vs. FAF: 8.88 )
Ranked among companies with meaningful Operating margin (%) only.
FAF' s 10-Year Operating margin (%) Range
Min: -3.44  Med: 5.24 Max: 10.29
Current: 8.88
-3.44
10.29
Net-margin (%) 5.90
FAF's Net-margin (%) is ranked lower than
65% of the 62 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 8.89 vs. FAF: 5.90 )
Ranked among companies with meaningful Net-margin (%) only.
FAF' s 10-Year Net-margin (%) Range
Min: -2.35  Med: 3.15 Max: 6.63
Current: 5.9
-2.35
6.63
ROE (%) 11.27
FAF's ROE (%) is ranked higher than
60% of the 62 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 10.25 vs. FAF: 11.27 )
Ranked among companies with meaningful ROE (%) only.
FAF' s 10-Year ROE (%) Range
Min: -4.4  Med: 6.39 Max: 13.76
Current: 11.27
-4.4
13.76
ROA (%) 3.82
FAF's ROA (%) is ranked higher than
63% of the 62 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 2.65 vs. FAF: 3.82 )
Ranked among companies with meaningful ROA (%) only.
FAF' s 10-Year ROA (%) Range
Min: -1.52  Med: 2.25 Max: 5.28
Current: 3.82
-1.52
5.28
Revenue Growth (3Y)(%) 6.40
FAF's Revenue Growth (3Y)(%) is ranked lower than
63% of the 51 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 9.10 vs. FAF: 6.40 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
FAF' s 10-Year Revenue Growth (3Y)(%) Range
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 41 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 14.80 vs. FAF: 26.90 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
FAF' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0  Med: 8.40 Max: 26.9
Current: 26.9
0
26.9
EPS Growth (3Y)(%) 43.30
FAF's EPS Growth (3Y)(%) is ranked higher than
78% of the 41 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 14.10 vs. FAF: 43.30 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
FAF' s 10-Year EPS Growth (3Y)(%) Range
Min: 0  Med: 12.50 Max: 43.3
Current: 43.3
0
43.3
» FAF's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2014

FAF Guru Trades in Q3 2014

John Rogers 10,395,183 sh (+10.53%)
Arnold Schneider 471,529 sh (+10.40%)
Sarah Ketterer 3,163,438 sh (+1.28%)
First Eagle Investment 429,537 sh (+0.97%)
Zeke Ashton 105,000 sh (unchged)
RS Investment Management 4,440,267 sh (-1.18%)
John Keeley 726,348 sh (-1.38%)
Chuck Royce 201,161 sh (-11.13%)
Jim Simons 111,200 sh (-75.47%)
» More
Q4 2014

FAF Guru Trades in Q4 2014

Jim Simons 360,700 sh (+224.37%)
Zeke Ashton Sold Out
Sarah Ketterer Sold Out
First Eagle Investment 429,481 sh (-0.01%)
John Keeley 711,138 sh (-2.09%)
Arnold Schneider 459,907 sh (-2.46%)
John Rogers 9,716,218 sh (-6.53%)
RS Investment Management 3,568,809 sh (-19.63%)
Chuck Royce 110,161 sh (-45.24%)
» More
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%)
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
» 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%)

No Entry found in the selected group of Gurus. You can
  • 1. Modify your Personalized List of Gurus, or
  • 2. Click on Premium Premium Tools above to check out all the Gurus, or
  • 3. Click on Premium Plus Premium Plus above for the stocks picks of all the institutional investment advisors (>4000)
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on First American Financial Corp

John Rogers Comments on First American Financial - Nov 05, 2013

Rising mortgage rates drove down First American Financial (NYSE:FAF)'s stock price as Wall Street investors feared an end to the refinancing boom. Over the near-term, we anticipate downward earnings revisions as refinancings come to a halt rather quickly and new home sales take time to ramp up. But looking further out, we know title insurance policies on new home purchases are twice as profitable as refinancings which will drive earnings at First American. Not to mention, with the stock trading at just 10x consensus earnings, our bullishness is only magnified by the stock's incredibly cheap valuation.

From John Rogers' Ariel Fund and Ariel Appreciate Fund portfolio manager letter third quarter 2013.


Check out John Rogers latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 14.66
FAF's P/E(ttm) is ranked lower than
67% of the 52 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 11.60 vs. FAF: 14.66 )
Ranked among companies with meaningful P/E(ttm) only.
FAF' s 10-Year P/E(ttm) Range
Min: 8.46  Med: 14.40 Max: 21.1
Current: 14.66
8.46
21.1
Forward P/E 11.06
FAF's Forward P/E is ranked lower than
60% of the 35 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 10.24 vs. FAF: 11.06 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 14.50
FAF's PE(NRI) is ranked lower than
66% of the 53 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 10.80 vs. FAF: 14.50 )
Ranked among companies with meaningful PE(NRI) only.
FAF' s 10-Year PE(NRI) Range
Min: 8.46  Med: 14.40 Max: 20.96
Current: 14.5
8.46
20.96
P/B 1.60
FAF's P/B is ranked lower than
69% of the 62 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.02 vs. FAF: 1.60 )
Ranked among companies with meaningful P/B only.
FAF' s 10-Year P/B Range
Min: 0.56  Med: 1.05 Max: 1.7
Current: 1.6
0.56
1.7
P/S 0.86
FAF's P/S is ranked higher than
69% of the 59 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.20 vs. FAF: 0.86 )
Ranked among companies with meaningful P/S only.
FAF' s 10-Year P/S Range
Min: 0.29  Med: 0.53 Max: 0.92
Current: 0.86
0.29
0.92
PFCF 11.74
FAF's PFCF is ranked lower than
53% of the 30 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 11.31 vs. FAF: 11.74 )
Ranked among companies with meaningful PFCF only.
FAF' s 10-Year PFCF Range
Min: 5.77  Med: 14.15 Max: 45.38
Current: 11.74
5.77
45.38
POCF 8.86
FAF's POCF is ranked lower than
53% of the 43 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 8.69 vs. FAF: 8.86 )
Ranked among companies with meaningful POCF only.
FAF' s 10-Year POCF Range
Min: 4.73  Med: 9.35 Max: 13.88
Current: 8.86
4.73
13.88
EV-to-EBIT 7.65
FAF's EV-to-EBIT is ranked higher than
50% of the 50 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 7.61 vs. FAF: 7.65 )
Ranked among companies with meaningful EV-to-EBIT only.
FAF' s 10-Year EV-to-EBIT Range
Min: 4.9  Med: 7.55 Max: 11.7
Current: 7.65
4.9
11.7
PEG 1.42
FAF's PEG is ranked lower than
61% of the 28 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.15 vs. FAF: 1.42 )
Ranked among companies with meaningful PEG only.
FAF' s 10-Year PEG Range
Min: 0.71  Med: 1.07 Max: 1.37
Current: 1.42
0.71
1.37
Shiller P/E 21.27
FAF's Shiller P/E is ranked lower than
95% of the 37 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 12.76 vs. FAF: 21.27 )
Ranked among companies with meaningful Shiller P/E only.
FAF' s 10-Year Shiller P/E Range
Min: 15.46  Med: 19.49 Max: 22.75
Current: 21.27
15.46
22.75
Days Sales Outstanding 20.30
FAF's Days Sales Outstanding is ranked higher than
76% of the 29 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 71.95 vs. FAF: 20.30 )
Ranked among companies with meaningful Days Sales Outstanding only.
FAF' s 10-Year Days Sales Outstanding Range
Min: 17.45  Med: 22.57 Max: 24.95
Current: 20.3
17.45
24.95

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.51
FAF's Dividend Yield is ranked lower than
84% of the 86 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 4.42 vs. FAF: 2.51 )
Ranked among companies with meaningful Dividend Yield only.
FAF' s 10-Year Dividend Yield Range
Min: 0.4  Med: 1.71 Max: 2.93
Current: 2.51
0.4
2.93
Dividend Payout 0.37
FAF's Dividend Payout is ranked lower than
54% of the 54 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.62 vs. FAF: 0.37 )
Ranked among companies with meaningful Dividend Payout only.
FAF' s 10-Year Dividend Payout Range
Min: 0.08  Med: 0.26 Max: 0.74
Current: 0.37
0.08
0.74
Dividend growth (3y) 51.80
FAF's Dividend growth (3y) is ranked higher than
91% of the 32 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 9.10 vs. FAF: 51.80 )
Ranked among companies with meaningful Dividend growth (3y) only.
FAF' s 10-Year Dividend growth (3y) Range
Min: 0  Med: 0.00 Max: 51.8
Current: 51.8
0
51.8
Yield on cost (5-Year) 2.53
FAF's Yield on cost (5-Year) is ranked lower than
100% of the 87 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 5.32 vs. FAF: 2.53 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
FAF' s 10-Year Yield on cost (5-Year) Range
Min: 0.4  Med: 1.71 Max: 2.93
Current: 2.53
0.4
2.93
Share Buyback Rate -0.60
FAF's Share Buyback Rate is ranked lower than
72% of the 39 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.40 vs. FAF: -0.60 )
Ranked among companies with meaningful Share Buyback Rate only.
FAF' s 10-Year Share Buyback Rate Range
Min: 0  Med: -0.60 Max: -1.4
Current: -0.6

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.58
FAF's Price/Tangible Book is ranked lower than
82% of the 56 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.12 vs. FAF: 2.58 )
Ranked among companies with meaningful Price/Tangible Book only.
FAF' s 10-Year Price/Tangible Book Range
Min: 1.16  Med: 1.67 Max: 2.48
Current: 2.58
1.16
2.48
Price/Projected FCF 1.02
FAF's Price/Projected FCF is ranked lower than
61% of the 31 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.95 vs. FAF: 1.02 )
Ranked among companies with meaningful Price/Projected FCF only.
FAF' s 10-Year Price/Projected FCF Range
Min: 0.83  Med: 0.95 Max: 1.03
Current: 1.02
0.83
1.03
Price/Median PS Value 1.62
FAF's Price/Median PS Value is ranked lower than
81% of the 54 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.07 vs. FAF: 1.62 )
Ranked among companies with meaningful Price/Median PS Value only.
FAF' s 10-Year Price/Median PS Value Range
Min: 0.62  Med: 1.00 Max: 1.55
Current: 1.62
0.62
1.55
Price/Peter Lynch Fair Value 0.95
FAF's Price/Peter Lynch Fair Value is ranked lower than
61% of the 18 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.86 vs. FAF: 0.95 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
FAF' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.74  Med: 1.09 Max: 1.26
Current: 0.95
0.74
1.26
Price/Graham Number 1.28
FAF's Price/Graham Number is ranked lower than
76% of the 46 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.69 vs. FAF: 1.28 )
Ranked among companies with meaningful Price/Graham Number only.
FAF' s 10-Year Price/Graham Number Range
Min: 0.74  Med: 0.94 Max: 1.3
Current: 1.28
0.74
1.3
Earnings Yield (Greenblatt) (%) 13.04
FAF's Earnings Yield (Greenblatt) (%) is ranked higher than
57% of the 60 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 12.40 vs. FAF: 13.04 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
FAF' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 8.5  Med: 13.25 Max: 20.3
Current: 13.04
8.5
20.3
Forward Rate of Return (Yacktman) (%) 21.10
FAF's Forward Rate of Return (Yacktman) (%) is ranked higher than
68% of the 34 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 13.90 vs. FAF: 21.10 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
FAF' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: 3.8  Med: 18.90 Max: 28.9
Current: 21.1
3.8
28.9

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
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 
Weekly CEO Sells Highlight: Rocket Fuel Inc, Gilead Sciences Inc, ServiceNow Inc, and First American Feb 09 2014 
Centaur Capital Partners' Third Quarter Top Holdings Nov 14 2013 
T2 Partners Update - Whitney Tilson Sells Out 29 Companies in Third Quarter Nov 12 2013 
John Rogers Comments on First American Financial Nov 05 2013 
John Rogers' Ariel Fund and Ariel Appreciate Fund Portfolio Manager Letter Oct 28 2013 
On the Low - Four Insurance Stocks Held by Numerous Billionaires Sep 15 2013 

More From Other Websites
Mortgage Loan Application Defect Incidence Rises 4.9 Percent in July Aug 31 2015
Should Hallmark Financial (HALL) Be in Your Portfolio Now? Aug 28 2015
21 Safe, A+ Rated Stocks to Buy in a Volatile Market Aug 27 2015
5 Low-Beta Value Stocks to Buy on Volatility Fears Aug 19 2015
First American Financial Corporation Declares Quarterly Cash Dividend Of 25 Cents Per Share Aug 18 2015
First American Financial Corporation Declares Quarterly Cash Dividend of 25 Cents Per Share Aug 18 2015
First American Named One of the 10 Best Workplaces in Insurance by Fortune and Great Place to Work® Aug 18 2015
First American Financial Corp. Earnings Q2*, 2015 Aug 18 2015
New Highs Include Breakouts: First American, MI Homes Aug 17 2015
Surging Earnings Estimates Signal Good News for First American Financial (FAF) Aug 17 2015
Primerica to Boost Investors' Worth with New Buyback Plan Aug 14 2015
American Financial's Acquisitions & Capital Position Impress Aug 13 2015
ProAssurance's (PRA) Acquisitions & Capital Position Impress Aug 13 2015
Will Berkshire Hathaway's Ratings Drop on Precision Deal? Aug 12 2015
Old Republic International Corp. Earnings Q2*, 2015 Aug 12 2015
Is The Chubb Corp (CB) Worth Adding to Your Portfolio? Aug 11 2015
The Zacks Analyst Blog Highlights: Allstate, First American Financial, RLI and Cincinnati Financial... Aug 06 2015
Forget Allstate, Buy These Insurance Stocks Instead - Analyst Blog Aug 05 2015
Is First American Financial (FAF) Stock A Great Combo of Value and Growth? - Tale of the Tape Aug 05 2015
10-Q for First American Financial Corp. Jul 29 2015

Personalized Checklist

Checklist has been moved to "Checklist" tab.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK