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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 : 8/10

vs
industry
vs
history
Cash to Debt 2.67
FAF's Cash to Debt is ranked higher than
74% of the 119 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 2.67 vs. FAF: 2.67 )
FAF' s 10-Year Cash to Debt Range
Min: 1.05   Max: No Debt
Current: 2.67

Equity to Asset 0.35
FAF's Equity to Asset is ranked higher than
82% of the 119 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.21 vs. FAF: 0.35 )
FAF' s 10-Year Equity to Asset Range
Min: 0.33   Max: 0.39
Current: 0.35

0.33
0.39
Interest Coverage 20.31
FAF's Interest Coverage is ranked higher than
69% of the 74 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 20.31 vs. FAF: 20.31 )
FAF' s 10-Year Interest Coverage Range
Min: 10.31   Max: 51.56
Current: 20.31

10.31
51.56
F-Score: 3
Z-Score: 1.32
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 (%) 6.73
FAF's Operating margin (%) is ranked higher than
67% of the 120 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 9.96 vs. FAF: 6.73 )
FAF' s 10-Year Operating margin (%) Range
Min: -3.44   Max: 10.29
Current: 6.73

-3.44
10.29
Net-margin (%) 4.41
FAF's Net-margin (%) is ranked higher than
64% of the 120 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 7.57 vs. FAF: 4.41 )
FAF' s 10-Year Net-margin (%) Range
Min: -2.35   Max: 6.63
Current: 4.41

-2.35
6.63
ROE (%) 8.25
FAF's ROE (%) is ranked higher than
64% of the 119 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 12.43 vs. FAF: 8.25 )
FAF' s 10-Year ROE (%) Range
Min: -4.4   Max: 13.76
Current: 8.25

-4.4
13.76
ROA (%) 3.00
FAF's ROA (%) is ranked higher than
77% of the 120 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 2.15 vs. FAF: 3.00 )
FAF' s 10-Year ROA (%) Range
Min: -1.52   Max: 5.27
Current: 3

-1.52
5.27
ROC (Joel Greenblatt) (%) 84.50
FAF's ROC (Joel Greenblatt) (%) is ranked higher than
67% of the 88 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 231.87 vs. FAF: 84.50 )
FAF' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -58.36   Max: 137.26
Current: 84.5

-58.36
137.26
Revenue Growth (%) 7.30
FAF's Revenue Growth (%) is ranked higher than
76% of the 101 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 6.40 vs. FAF: 7.30 )
FAF' s 10-Year Revenue Growth (%) Range
Min: 0   Max: 7.3
Current: 7.3

0
7.3
EBITDA Growth (%) 8.40
FAF's EBITDA Growth (%) is ranked higher than
79% of the 98 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 8.40 vs. FAF: 8.40 )
FAF' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 19.9
Current: 8.4

0
19.9
EPS Growth (%) 12.50
FAF's EPS Growth (%) is ranked higher than
85% of the 97 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 8.20 vs. FAF: 12.50 )
FAF' s 10-Year EPS Growth (%) Range
Min: 0   Max: 32.9
Current: 12.5

0
32.9
» FAF's 10-Y Financials

Financials


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

» Details

Guru Trades

Q4 2013

FAF Guru Trades in Q4 2013

David Dreman 1,690 sh (New)
Paul Tudor Jones 118,000 sh (New)
Sarah Ketterer 1,657,732 sh (+96.25%)
Arnold Schneider 199,019 sh (+53.55%)
RS Investment Management 4,445,004 sh (+10.81%)
Jean-Marie Eveillard 425,247 sh (+8.55%)
John Keeley 819,670 sh (+3.63%)
John Rogers 9,964,903 sh (+1.27%)
Chuck Royce 289,561 sh (+0.52%)
Zeke Ashton Sold Out
Joel Greenblatt 18,624 sh (-1.06%)
Manning & Napier Advisors, Inc 211,200 sh (-2.65%)
Steven Cohen 14,125 sh (-47.98%)
Jim Simons 112,800 sh (-78.22%)
» More
Q1 2014

FAF Guru Trades in Q1 2014

Jim Simons 560,045 sh (+396.49%)
Arnold Schneider 376,299 sh (+89.08%)
Sarah Ketterer 2,276,882 sh (+37.35%)
RS Investment Management 5,118,666 sh (+15.16%)
Paul Tudor Jones 122,700 sh (+3.98%)
John Keeley 820,118 sh (+0.05%)
Jean-Marie Eveillard 425,423 sh (+0.04%)
Steven Cohen Sold Out
John Rogers 9,603,028 sh (-3.63%)
David Dreman 1,556 sh (-7.93%)
Chuck Royce 249,561 sh (-13.81%)
Joel Greenblatt 10,060 sh (-45.98%)
Manning & Napier Advisors, Inc 8,450 sh (-96%)
» More
Q2 2014

FAF Guru Trades in Q2 2014

Zeke Ashton 105,000 sh (New)
Sarah Ketterer 3,123,338 sh (+37.18%)
Arnold Schneider 427,108 sh (+13.5%)
Jean-Marie Eveillard 425,423 sh (unchged)
Paul Tudor Jones Sold Out
Manning & Napier Advisors, Inc Sold Out
Joel Greenblatt Sold Out
David Dreman Sold Out
John Rogers 9,404,467 sh (-2.07%)
Chuck Royce 226,361 sh (-9.3%)
John Keeley 736,508 sh (-10.19%)
RS Investment Management 4,493,151 sh (-12.22%)
Jim Simons 453,300 sh (-19.06%)
» More
Q3 2014

FAF Guru Trades in Q3 2014

John Rogers 10,395,183 sh (+10.53%)
Arnold Schneider 471,529 sh (+10.4%)
Sarah Ketterer 3,163,438 sh (+1.28%)
Jean-Marie Eveillard 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
» 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%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Rogers 2014-09-30 Add 10.53%0.34%$26.97 - $28.51 $ 32.1516%10395183
Arnold Schneider 2014-09-30 Add 10.4%0.15%$26.97 - $28.51 $ 32.1516%471529
Arnold Schneider 2014-06-30 Add 13.5%0.15%$25.6 - $28.62 $ 32.1518%427108
David Dreman 2014-06-30 Sold Out $25.6 - $28.62 $ 32.1518%0
Joel Greenblatt 2014-06-30 Sold Out $25.6 - $28.62 $ 32.1518%0
Arnold Schneider 2014-03-31 Add 89.08%0.52%$24.92 - $28.2 $ 32.1521%376299
John Rogers 2014-03-31 Reduce -3.63%0.13%$24.92 - $28.2 $ 32.1521%9603028
Joel Greenblatt 2014-03-31 Reduce -45.98%0.01%$24.92 - $28.2 $ 32.1521%10060
Arnold Schneider 2013-12-31 Add 53.55%0.18%$23.62 - $28.26 $ 32.1524%199019
David Dreman 2013-12-31 New Buy$23.62 - $28.26 $ 32.1524%1690
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» 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 (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

John Rogers Comments on First American Financial Corp. - Jul 25, 2013

Mortgage insurer First American Financial Corp. (FAF) slid -13.35% despite a good overall quarter. We believe the market was essentially confused. The company's official earnings per share were $0.33 versus the $0.42 consensus. The key reason for the miss, however, was a large reserve charge dating to the 2006-2007 period. Without the charge, earnings would have been roughly $0.44 per share. Revenues exceeded expectations by increasing +19%, and purchase orders were up +13%. Admittedly, those were trade-offs for refinancings, which were down -7%. Management was upbeat and optimistic about business, a perspective we think was fully justified. The stock now trades below 1x book, which we think is very cheap given its profitability, powerful market position and business trajectory.

From John RogersAriel Appreciation Fund Second Quarter 2013 Commentary.


Check out John Rogers latest stock trades

Top Ranked Articles about First American Financial Corp

Ariel Capital Management and John Rogers' Top Five Stocks
John Rogers is the founder of Ariel Capital Management which he began in 1983. According to his Investing Philosophy the guru concentrates his investments on small- to medium-sized companies whose prospects include high barriers to entry, sustainable competitive advantages and predictable fundamentals that allow for extensive cash earnings growth.

Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 16.90
FAF's P/E(ttm) is ranked higher than
70% of the 126 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 10.30 vs. FAF: 16.90 )
FAF' s 10-Year P/E(ttm) Range
Min: 8.46   Max: 21.1
Current: 16.9

8.46
21.1
P/B 1.30
FAF's P/B is ranked higher than
70% of the 126 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.11 vs. FAF: 1.30 )
FAF' s 10-Year P/B Range
Min: 0.56   Max: 1.33
Current: 1.3

0.56
1.33
P/S 0.80
FAF's P/S is ranked higher than
87% of the 126 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.09 vs. FAF: 0.80 )
FAF' s 10-Year P/S Range
Min: 0.29   Max: 0.8
Current: 0.8

0.29
0.8
EV-to-EBIT 8.48
FAF's EV-to-EBIT is ranked higher than
80% of the 126 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 7.81 vs. FAF: 8.48 )
FAF' s 10-Year EV-to-EBIT Range
Min: 4.9   Max: 11.7
Current: 8.48

4.9
11.7
PEG 1.59
FAF's PEG is ranked higher than
89% of the 126 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 9999.00 vs. FAF: 1.59 )
FAF' s 10-Year PEG Range
Min: 0.71   Max: 1.34
Current: 1.59

0.71
1.34
Shiller P/E 18.90
FAF's Shiller P/E is ranked higher than
79% of the 126 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 18.58 vs. FAF: 18.90 )
FAF' s 10-Year Shiller P/E Range
Min: 15.46   Max: 18.9
Current: 18.9

15.46
18.9

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.30
FAF's Dividend Yield is ranked lower than
63% of the 95 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 3.40 vs. FAF: 2.30 )
FAF' s 10-Year Dividend Yield Range
Min: 0.4   Max: 2.74
Current: 2.3

0.4
2.74
Dividend Payout 0.38
FAF's Dividend Payout is ranked higher than
76% of the 126 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.41 vs. FAF: 0.38 )
FAF' s 10-Year Dividend Payout Range
Min: 0.08   Max: 0.6
Current: 0.38

0.08
0.6
Dividend growth (3y) 38.70
FAF's Dividend growth (3y) is ranked higher than
97% of the 79 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 4.70 vs. FAF: 38.70 )
FAF' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 38.7
Current: 38.7

0
38.7
Yield on cost (5-Year) 2.30
FAF's Yield on cost (5-Year) is ranked lower than
69% of the 96 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 4.11 vs. FAF: 2.30 )
FAF' s 10-Year Yield on cost (5-Year) Range
Min: 0.4   Max: 2.74
Current: 2.3

0.4
2.74
Share Buyback Rate -0.90
FAF's Share Buyback Rate is ranked higher than
69% of the 97 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.20 vs. FAF: -0.90 )
FAF' s 10-Year Share Buyback Rate Range
Min: 0   Max: -1.4
Current: -0.9

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.20
FAF's Price/Tangible Book is ranked higher than
69% of the 126 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.25 vs. FAF: 2.20 )
FAF' s 10-Year Price/Tangible Book Range
Min: 1.16   Max: 2
Current: 2.2

1.16
2
Price/DCF (Projected) 1.30
FAF's Price/DCF (Projected) is ranked higher than
82% of the 126 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.49 vs. FAF: 1.30 )
FAF' s 10-Year Price/DCF (Projected) Range
Min: 1.09   Max: 1.21
Current: 1.3

1.09
1.21
Price/Median PS Value 1.60
FAF's Price/Median PS Value is ranked higher than
63% of the 126 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 1.17 vs. FAF: 1.60 )
FAF' s 10-Year Price/Median PS Value Range
Min: 0.69   Max: 1.35
Current: 1.6

0.69
1.35
Price/Peter Lynch Fair Value 1.40
FAF's Price/Peter Lynch Fair Value is ranked higher than
90% of the 126 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 9999.00 vs. FAF: 1.40 )
FAF' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.74   Max: 1.17
Current: 1.4

0.74
1.17
Price/Graham Number 1.30
FAF's Price/Graham Number is ranked higher than
67% of the 126 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 0.77 vs. FAF: 1.30 )
FAF' s 10-Year Price/Graham Number Range
Min: 0.74   Max: 1.21
Current: 1.3

0.74
1.21
Earnings Yield (Greenblatt) 11.80
FAF's Earnings Yield (Greenblatt) is ranked higher than
78% of the 116 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 17.00 vs. FAF: 11.80 )
FAF' s 10-Year Earnings Yield (Greenblatt) Range
Min: 8.5   Max: 20.3
Current: 11.8

8.5
20.3
Forward Rate of Return (Yacktman) 15.33
FAF's Forward Rate of Return (Yacktman) is ranked higher than
83% of the 88 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 11.83 vs. FAF: 15.33 )
FAF' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 15.9   Max: 26.9
Current: 15.33

15.9
26.9

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

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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 
John Rogers Comments on First American Financial Corp. Jul 25 2013 


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