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The historical rank and industry rank for First American Financial's ROE % or its related term are showing as below:
FRA:Y1F'
s ROE % Range Over the Past 10 Years
Min: 2.69 Med: 12.5 Max: 23.25
Current: 13.78
During the past 13 years, First American Financial's highest ROE % was 23.25%. The lowest was 2.69%. And the median was 12.50%.
FRA:Y1F's ROE % is ranked better than 59.72% of 504
companies
in the Insurance industry
Industry Median: 11.635
vs FRA:Y1F: 13.78
First American Financial (FRA:Y1F) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Specialty subindustry, First American Financial's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
First American Financial ROE % vs Insurance Industry
For the Insurance industry and Financial Services sector, First American Financial's ROE % distribution charts can be found below:
* The bar in red indicates where First American Financial's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
First American Financial (FRA:Y1F) has a ROE % of 15.76% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on First American Financial and its competitors. This is 26% above median its historical median of 12.50. Over the past decade, First American Financial's ROE % has ranged from 2.69 to 23.25. According to the industry distribution chart, First American Financial ranks #203 out of 504 companies in the Insurance industry, placing it in the top 40.3%.
Is First American Financial's ROE % too high?
First American Financial's current ROE % of 15.76% is 26% above median its 10-year median of 12.50. Over the past 10 years, this metric has ranged from a low of 2.69 to a high of 23.25. The Insurance industry median ROE % is 11.64. First American Financial's value of 15.76% is 35.5% above this industry median. Based on the distribution chart, First American Financial ranks #203 out of 504 companies in the Insurance industry, which is above the industry midpoint. Overall, First American Financial has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First American Financial's ROE % compare to ACT and ESNT?
According to the Insurance industry distribution chart, First American Financial ranks #203 out of 504 companies for ROE %. This puts First American Financial in the upper half of its industry. The industry median ROE % is 11.64. First American Financial's value of 15.76% is 35.5% above this benchmark. Historically, First American Financial's own ROE % has ranged from 2.69 to 23.25 over the past decade. While the company's 10-year median is 12.50 vs. the industry median of 11.64, First American Financial has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Insurance company?
The median ROE % among Insurance companies is 11.64, based on 504 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First American Financial's current ROE % of 15.76% is 35.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on First American Financial and its competitors. For the Insurance industry, the median ROE % is 11.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First American Financial's current ROE % is 15.76%, which is 26% above median its own 10-year median of 12.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First American Financial stock overvalued right now?
Based on GuruFocus' analysis, First American Financial (FRA:Y1F) is currently considered Fairly Valued. The stock's GF Value™ is €61.30, compared to a current price of €59.50 — trading 2.9% below its estimated fair value. The current ROE % is 15.76%, which is 26% above median its 10-year median of 12.50 and 35.5% above the Insurance industry median of 11.64. First American Financial's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For First American Financial (FRA:Y1F), the current ROE % is 15.76% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is First American Financial (FRA:Y1F) Overvalued in 2026?
Based on GuruFocus' analysis, First American Financial stock appears to be undervalued.
The current stock price of €59.50 is trading 2.9% below its estimated GF Value™ of €61.30.
GuruFocus considers First American Financial to be Fairly Valued.
Key valuation signals for FRA:Y1F:
ROE %: 15.76% (26% above median its 10-year median of 12.50)
GF Value™: €61.30 vs. price of €59.50 (2.9% below fair value)
Industry Position: 35.5% above the Insurance median (#203 of 504)
No single metric tells the full story. See the FRA:Y1F stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First American Financial Corp is engaged in the business of providing title insurance, settlement services, and other financial services and risk solutions. The group's reportable segments are: Title insurance and services, Home warranty, and Corporate. Maximum revenue is generated from the Title insurance and services segment, which provides title insurance, closing, escrow, and related services domestically and internationally in connection with residential and commercial real estate transactions. This segment also provides solutions to mitigate risk and facilitate real estate transactions, along with offering banking, trust, warehouse lending, mortgage subservicing and wealth management services. The majority of the group's revenue is generated from escrow fees and insurance premiums.
76GF Score
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