(FAF) First American - Overview
Stock: Title Insurance, Home Warranty, Escrow, Valuation, Exchange Services
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 3.55% |
| Yield on Cost 5y | 5.85% |
| Yield CAGR 5y | 2.96% |
| Payout Consistency | 100.0% |
| Payout Ratio | 53.6% |
| Risk 5d forecast | |
|---|---|
| Volatility | 23.9% |
| Relative Tail Risk | -1.77% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.30 |
| Alpha | -2.36 |
| Character TTM | |
|---|---|
| Beta | 0.638 |
| Beta Downside | 0.594 |
| Drawdowns 3y | |
|---|---|
| Max DD | 22.13% |
| CAGR/Max DD | 0.34 |
Description: FAF First American January 09, 2026
First American Financial Corporation (NYSE: FAF) delivers title-insurance, escrow, and related real-estate transaction services through its Title Insurance & Services segment, and offers residential home-warranty contracts via its Home Warranty segment. The title business issues policies for both residential and commercial properties, provides risk-mitigation tools (e.g., lien releases, document custodial services, and tax-deferred exchanges), and operates a global network of agents and direct offices across the United States, Canada, the U.K., Australia, New Zealand, South Korea, and other markets. The Home Warranty segment sells service contracts that cover HVAC systems, appliances, and other household equipment in a broad set of U.S. states and D.C.
Key operating metrics (FY 2023): revenue $2.6 bn, adjusted EPS $6.27, and a combined ratio of 95.4 % for the title-insurance business, indicating profitable underwriting. The segment’s earnings are closely tied to U.S. residential-property transaction volume, which fell ~5 % YoY amid higher mortgage rates, while the home-warranty line showed a 3 % premium-growth rate driven by increased consumer focus on cost-containment. Macro drivers include the Federal Reserve’s interest-rate policy (which influences mortgage activity) and the broader health of the housing market, which together account for roughly 70 % of FAF’s earnings volatility.
For a deeper quantitative view of FAF’s valuation drivers, you may find ValueRay’s analyst-grade dashboard useful.
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income: 482.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 2.11 > 1.0 |
| NWC/Revenue: 36.09% < 20% (prev 26.48%; Δ 9.60% < -1%) |
| CFO/TA 0.05 > 3% & CFO 906.1m > Net Income 482.3m |
| Net Debt (-146.2m) to EBITDA (1.01b): -0.15 < 3 |
| Current Ratio: 8.17 > 1.5 & < 3 |
| Outstanding Shares: last quarter (103.8m) vs 12m ago 0.19% < -2% |
| Gross Margin: 63.01% > 18% (prev 0.62%; Δ 6239 % > 0.5%) |
| Asset Turnover: 41.43% > 50% (prev 35.41%; Δ 6.02% > 0%) |
| Interest Coverage Ratio: 5.07 > 6 (EBITDA TTM 1.01b / Interest Expense TTM 156.8m) |
Altman Z'' 2.28
| A: 0.15 (Total Current Assets 2.91b - Total Current Liabilities 356.4m) / Total Assets 17.61b |
| B: 0.22 (Retained Earnings 3.86b / Total Assets 17.61b) |
| C: 0.05 (EBIT TTM 795.5m / Avg Total Assets 17.09b) |
| D: 0.29 (Book Value of Equity 3.57b / Total Liabilities 12.28b) |
| Altman-Z'' Score: 2.28 = BBB |
Beneish M -2.99
| DSRI: 0.87 (Receivables 467.0m/445.3m, Revenue 7.08b/5.87b) |
| GMI: 0.98 (GM 63.01% / 61.54%) |
| AQI: 1.07 (AQ_t 0.78 / AQ_t-1 0.73) |
| SGI: 1.21 (Revenue 7.08b / 5.87b) |
| TATA: -0.02 (NI 482.3m - CFO 906.1m) / TA 17.61b) |
| Beneish M-Score: -2.99 (Cap -4..+1) = A |
What is the price of FAF shares?
Over the past week, the price has changed by +6.58%, over one month by +8.07%, over three months by +11.67% and over the past year by +8.80%.
Is FAF a buy, sell or hold?
- StrongBuy: 2
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the FAF price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 76.8 | 14% |
| Analysts Target Price | 76.8 | 14% |
| ValueRay Target Price | 72.2 | 7.3% |
FAF Fundamental Data Overview February 04, 2026
P/E Forward = 9.3809
P/S = 0.9194
P/B = 1.2314
P/EG = 2.04
Revenue TTM = 7.08b USD
EBIT TTM = 795.5m USD
EBITDA TTM = 1.01b USD
Long Term Debt = 1.55b USD (from longTermDebt, last quarter)
Short Term Debt = 1.08b USD (from shortTermDebt, last quarter)
Debt = 2.85b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -146.2m USD (from netDebt column, last quarter)
Enterprise Value = 6.45b USD (6.52b + Debt 2.85b - CCE 2.91b)
Interest Coverage Ratio = 5.07 (Ebit TTM 795.5m / Interest Expense TTM 156.8m)
EV/FCF = 9.16x (Enterprise Value 6.45b / FCF TTM 704.2m)
FCF Yield = 10.92% (FCF TTM 704.2m / Enterprise Value 6.45b)
FCF Margin = 9.95% (FCF TTM 704.2m / Revenue TTM 7.08b)
Net Margin = 6.81% (Net Income TTM 482.3m / Revenue TTM 7.08b)
Gross Margin = 63.01% ((Revenue TTM 7.08b - Cost of Revenue TTM 2.62b) / Revenue TTM)
Gross Margin QoQ = 63.07% (prev 64.41%)
Tobins Q-Ratio = 0.37 (Enterprise Value 6.45b / Total Assets 17.61b)
Interest Expense / Debt = 1.40% (Interest Expense 39.9m / Debt 2.85b)
Taxrate = 23.12% (57.1m / 247.0m)
NOPAT = 611.6m (EBIT 795.5m * (1 - 23.12%))
Current Ratio = 8.17 (Total Current Assets 2.91b / Total Current Liabilities 356.4m)
Debt / Equity = 0.54 (Debt 2.85b / totalStockholderEquity, last quarter 5.30b)
Debt / EBITDA = -0.15 (Net Debt -146.2m / EBITDA 1.01b)
Debt / FCF = -0.21 (Net Debt -146.2m / FCF TTM 704.2m)
Total Stockholder Equity = 5.09b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.82% (Net Income 482.3m / Total Assets 17.61b)
RoE = 9.48% (Net Income TTM 482.3m / Total Stockholder Equity 5.09b)
RoCE = 11.99% (EBIT 795.5m / Capital Employed (Equity 5.09b + L.T.Debt 1.55b))
RoIC = 8.63% (NOPAT 611.6m / Invested Capital 7.08b)
WACC = 6.08% (E(6.52b)/V(9.36b) * Re(8.26%) + D(2.85b)/V(9.36b) * Rd(1.40%) * (1-Tc(0.23)))
Discount Rate = 8.26% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -0.29%
[DCF Debug] Terminal Value 81.51% ; FCFF base≈547.8m ; Y1≈397.8m ; Y5≈222.2m
Fair Price DCF = 65.94 (EV 6.57b - Net Debt -146.2m = Equity 6.72b / Shares 101.9m; r=6.08% [WACC]; 5y FCF grow -32.26% → 2.90% )
EPS Correlation: -29.45 | EPS CAGR: -45.83% | SUE: -4.0 | # QB: 0
Revenue Correlation: -39.06 | Revenue CAGR: -4.65% | SUE: 1.72 | # QB: 1
EPS next Quarter (2026-03-31): EPS=1.19 | Chg30d=+0.028 | Revisions Net=+3 | Analysts=5
EPS next Year (2026-12-31): EPS=6.04 | Chg30d=+0.064 | Revisions Net=+0 | Growth EPS=+9.8% | Growth Revenue=+7.4%