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24.8 (1y: +58%)
Market Cap 2.66 B P/E(ttm) 8.70
Enterprise Value 2.98 B P/B 1.10
FAF- NYSE (USA)
First American Financial Corp
Not Rated
Top Ranked Predictable Companies
$24.80
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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 1.365
FAF's Cash to Debt is ranked lower than
62% of the 97 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 3.65 vs. FAF: 1.365 )
FAF' s 10-Year Cash to Debt Range
Min: 1.37   Max: 2.96
Current: 1.37
1.37
2.96
Equity to Asset 0.239
FAF's Equity to Asset is ranked lower than
55% of the 95 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.25 vs. FAF: 0.239 )
FAF' s 10-Year Equity to Asset Range
Min: 0.18   Max: 0.24
Current: 0.24
0.18
0.24
Interest Coverage 51.6
FAF's Interest Coverage is ranked higher than
55% of the 83 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 25.20 vs. FAF: 51.6 )
FAF' s 10-Year Interest Coverage Range
Min: 10   Max: 52
Current: 51.6
10
52
F-Score: 5
Z-Score: 1.54
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 : 5/10

vs
industry		 vs
history
Operating margin (%) 10.30
FAF's Operating margin (%) is ranked lower than
52% of the 83 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 10.40 vs. FAF: 10.30 )
FAF' s 10-Year Operating margin (%) Range
Min: -3.4   Max: 10.3
Current: 10.3
-3.4
10.3
Net-margin (%) 6.6
FAF's Net-margin (%) is ranked lower than
60% of the 87 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 7.40 vs. FAF: 6.6 )
FAF' s 10-Year Net-margin (%) Range
Min: -2.4   Max: 6.6
Current: 6.6
-2.4
6.6
ROE (%) 12.8
FAF's ROE (%) is ranked higher than
72% of the 86 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 9.20 vs. FAF: 12.8 )
FAF' s 10-Year ROE (%) Range
Min: -7.4   Max: 12.8
Current: 12.8
-7.4
12.8
ROA (%) 5
FAF's ROA (%) is ranked higher than
85% of the 86 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 2.40 vs. FAF: 5 )
FAF' s 10-Year ROA (%) Range
Min: -2.7   Max: 5
Current: 5
-2.7
5
» FAF's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

FAF Guru Trades in Q2 2012

Jim Simons 107,200 sh (+901.87%)
Chuck Royce 667,861 sh (+1.97%)
Larry Robbins 44,830 sh (-1.9%)
John Keeley 2,509,611 sh (-2.06%)
Charles Brandes 68,472 sh (-4.36%)
Richard Pzena 1,521,127 sh (-5.34%)
John Rogers 9,383,485 sh (-5.9%)
» More
Q3 2012

FAF Guru Trades in Q3 2012

Whitney Tilson 58,000 sh (New)
Ken Heebner 440,000 sh (New)
Zeke Ashton 87,800 sh (New)
John Keeley 2,552,765 sh (+1.72%)
Jim Simons Sold Out
Larry Robbins Sold Out
John Rogers 8,740,305 sh (-6.85%)
Chuck Royce 608,861 sh (-8.83%)
Richard Pzena 1,108,362 sh (-27.14%)
Charles Brandes 40,853 sh (-40.34%)
» More
Q4 2012

FAF Guru Trades in Q4 2012

Joel Greenblatt 8,336 sh (New)
Paul Tudor Jones 15,600 sh (New)
Jim Simons 120,600 sh (New)
Steven Cohen 26,366 sh (New)
Zeke Ashton 210,000 sh (+139.18%)
Whitney Tilson 135,000 sh (+132.76%)
Charles Brandes Sold Out
Ken Heebner Sold Out
John Rogers 7,967,365 sh (-8.84%)
John Keeley 2,189,352 sh (-14.24%)
Chuck Royce 441,661 sh (-27.46%)
Richard Pzena 235,102 sh (-78.79%)
» More
Q1 2013

FAF Guru Trades in Q1 2013

RS Investment Management 460,200 sh (New)
Jim Simons 1,017,600 sh (+743.78%)
Paul Tudor Jones 33,700 sh (+116.03%)
Joel Greenblatt 13,520 sh (+62.19%)
Zeke Ashton 265,000 sh (+26.19%)
Whitney Tilson 166,546 sh (+23.37%)
Richard Pzena Sold Out
Steven Cohen Sold Out
John Keeley 2,132,995 sh (-2.57%)
John Rogers 7,414,965 sh (-6.93%)
Chuck Royce 289,661 sh (-34.42%)
» More
» Details

Insider Trades

Latest Guru Trades with FAF

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-03-31 Add 62.19%0.01%$23.01 - $25.57 $ 24.81%13520
Charles Brandes 2012-12-31 Sold Out 0.01%$22.04 - $24.69 $ 24.86%0
Joel Greenblatt 2012-12-31 New Buy0.01%$22.04 - $24.69 $ 24.86%8336
Charles Brandes 2012-09-30 Reduce -40.34%$16.46 - $22.25 $ 24.832%40853
Charles Brandes 2011-09-30 Reduce -63.1%0.01%$12.72 - $16.02 $ 24.869%65592
John Keeley 2010-12-31 Add 15.73%0.1%$13.62 - $15.17 $ 24.871%2977000
Charles Brandes 2010-09-30 Add 35.81%0.01%$12.82 - $15.66 $ 24.873%179239
John Keeley 2010-06-30 New Buy0.06%$12.31 - $37.07 $ 24.8-11%266280
Charles Brandes 2010-06-30 New Buy0.01%$12.31 - $14.48 $ 24.885%131978
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on First American Financial Corp

John Rogers Comments on First American Financial Corp - Oct 25, 2012

In addition, title insurer First American Financial Corp. (FAF) gained +28.24% due to a solid earnings report. Wall Street had expected the company to earn $0.43 per share, but First American delivered $0.68 on very strong revenue growth driven by heavy refinancing activity. In our opinion, the analyst community continues to underappreciate the company's considerable operating leverage. Pretax margins were 11.7% for the quarter, well ahead of the company's full-year goal of 8%-10%. Despite the stock's considerable gains this year, it continues to be a remarkable bargain in our opinion; it still trades below its book value. As the market comes around to the now widespread view that housing-related companies are connected to a strong segment of the economy rather than a weak one, we think the valuation penalty they have lately suffered is reasonably likely to disappear or even turn into a benefit.

From Ariel Funds' third quarter commentary.


Check out John Rogers latest stock trades

Top Ranked Articles about First American Financial Corp

Ariel Fund’s John Rogers Stocks Up on Contango Oil
December 6, 2012
John Rogers - Ariel Fund’s John Rogers Stocks Up On Contango Oil
As of Nov. 30, small-to-mid-cap investment Guru John Rogers of Illinois-based Ariel Capital Management reported to increasing his stake in independent natural gas and oil company Contango Oil (MCF) by 52.55 percent, according to GuruFocus Real Time Picks. Read more...
John Rogers Comments on First American Financial Corp
October 25, 2012
In addition, title insurer First American Financial Corp. (FAF) gained +28.24% due to a solid earnings report. Wall Street had expected the company to earn $0.43 per share, but First American delivered $0.68 on very strong revenue growth driven by heavy refinancing activity. In our opinion, the analyst community continues to underappreciate the company's considerable operating leverage. Pretax margins were 11.7% for the quarter, well ahead of the company's full-year goal of 8%-10%. Despite the stock's considerable gains this year, it continues to be a remarkable bargain in our opinion; it still trades below its book value. As the market comes around to the now widespread view that housing-related companies are connected to a strong segment of the economy rather than a weak one, we think the valuation penalty they have lately suffered is reasonably likely to disappear or even turn into a benefit. Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 8.70
FAF's P/E(ttm) is ranked higher than
79% of the 85 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 13.80 vs. FAF: 8.70 )
FAF' s 10-Year P/E(ttm) Range
Min: 8.46   Max: 46.41
Current: 8.7
8.46
46.41
P/B 1.10
FAF's P/B is ranked lower than
60% of the 98 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.01 vs. FAF: 1.10 )
FAF' s 10-Year P/B Range
Min: 0.57   Max: 1.24
Current: 1.1
0.57
1.24
P/S 0.57
FAF's P/S is ranked higher than
82% of the 100 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.11 vs. FAF: 0.57 )
FAF' s 10-Year P/S Range
Min: 0.29   Max: 1.62
Current: 0.57
0.29
1.62
PFCF 8.20
FAF's PFCF is ranked lower than
56% of the 75 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 7.76 vs. FAF: 8.20 )
FAF' s 10-Year PFCF Range
Min: 7.39   Max: 97.13
Current: 8.2
7.39
97.13
EV-to-EBIT 6.3
FAF's EV-to-EBIT is ranked higher than
85% of the 86 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 11.80 vs. FAF: 6.3 )
FAF' s 10-Year EV-to-EBIT Range
Min: 5   Max: 31.3
Current: 6.3
5
31.3

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 1.61
FAF's Dividend Yield is ranked lower than
67% of the 75 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 2.20 vs. FAF: 1.61 )
FAF' s 10-Year Dividend Yield Range
Min: 0.4   Max: 2.28
Current: 1.61
0.4
2.28
Dividend Payout 0.1427
FAF's Dividend Payout is ranked higher than
77% of the 66 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.32 vs. FAF: 0.1427 )
FAF' s 10-Year Dividend Payout Range
Min: 0.13   Max: 0.33
Current: 0.14
0.13
0.33
Yield on cost (5-Year) 1.60
FAF's Yield on cost (5-Year) is ranked lower than
68% of the 77 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 2.48 vs. FAF: 1.60 )
FAF' s 10-Year Yield on cost (5-Year) Range
Min: 0.4   Max: 2.28
Current: 1.6
0.4
2.28

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 15
FAF's Price/Net Current Asset Value is ranked lower than
77% of the 70 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 6.60 vs. FAF: 15 )
FAF' s 10-Year Price/Net Current Asset Value Range
Min: 8.5   Max: 14.8
Current: 15
8.5
14.8
Price/Tangible Book 1.8
FAF's Price/Tangible Book is ranked lower than
79% of the 94 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.20 vs. FAF: 1.8 )
FAF' s 10-Year Price/Tangible Book Range
Min: 1.2   Max: 1.8
Current: 1.8
1.2
1.8
Price/Median PS Value 1.1
FAF's Price/Median PS Value is ranked lower than
53% of the 99 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.10 vs. FAF: 1.1 )
FAF' s 10-Year Price/Median PS Value Range
Min: 0.7   Max: 1.1
Current: 1.1
0.7
1.1
Price/Graham Number 0.9
FAF's Price/Graham Number is ranked lower than
61% of the 82 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 0.90 vs. FAF: 0.9 )
FAF' s 10-Year Price/Graham Number Range
Min: 0.8   Max: 0.9
Current: 0.9
0.8
0.9
Earnings Yield (Greenblatt) 15.80
FAF's Earnings Yield (Greenblatt) is ranked higher than
85% of the 86 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 8.20 vs. FAF: 15.80 )
FAF' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.2   Max: 20.1
Current: 15.8
3.2
20.1

Business Description

First American Financial Corporation was incorporated in the state of Delaware in January 2008 to serve as the holding company of The First American Corporation's financial services business. The Company 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, escrow or closing services and similar or related financial services domestically and internationally in connection with residential and commercial real estate transactions. It also maintains, manages and provides access to title plant records and images and provides banking, trust and investment advisory services. It has two business segments ie The Company's title insurance and services segment issues title insurance policies on residential and commercial property and its specialty insurance segment issues property and casualty insurance policies and sells home warranty products.The substantial majority of its business is dependent upon activity in the real estate and mortgage markets, which are cyclical and seasonal. During the most recent real estate and mortgage cycle, it has primarily emphasized expense control and operational efficiency by, among other activities, reducing employee count, consolidating offices, centralizing agency and administrative functions, optimizing its organizational structure and rationalizing its brand strategy. There are various risks attached to its business ie Conditions in the real estate market generally impact the demand for a substantial portion of the Company's products and services, Unfavorable economic conditions may have a material adverse effect on the Company, Unfavorable economic or other conditions could cause the Company to write off a portion of its goodwill and other intangible assets, A downgrade by ratings agencies, reductions in statutory surplus maintained by the Company's title insurance underwriters or a deterioration in other measures of financial strength may negatively affect the Company's results of operations and competitive position, Failures at financial institutions at which the Company deposits funds could adversely affect the Company, Changes in government regulation could prohibit or limit the Company's operations or make it more burdensome to conduct such operations, Scrutiny of the Company's businesses and the industries in which it operates by governmental entities and others could adversely affect its operations and financial condition, Reform of government-sponsored enterprises could negatively impact the Company, Regulation of title insurance rates could adversely affect the Company's results of operations etc.
Company Website
SEC Reports
Industry: Insurance - Property & Casualty
Compare:
» More Articles for FAF

Headlines

Articles On GuruFocus.com
Ariel Investments' John Rogers on Stocks for 2013 Jan 08 2013 
Ariel Fund’s John Rogers Stocks Up on Contango Oil Dec 06 2012 
Investing in Money: Ariel Fund & Ariel Appreciation Fund Q3 Commentary Nov 19 2012 
John Rogers Comments on First American Financial Corp Oct 25 2012 
John Rogers' Ariel Fund Q3 Commentary Oct 25 2012 
3 Insurance Stocks to Consider Now, 2 to Hold Mar 02 2012 
Ariel Investments Annual Report (John Rogers) Nov 19 2011 
The First American Corp. (FAF) EVP & CFO Max O Valdes sells 9,282 Shares Mar 09 2011 
Flavors of Insurance, Part IX (Title) Dec 14 2010 
The First American Corp. (FAF) CEO Dennis J Gilmore sells 43,767 Shares Dec 08 2010 

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