First American Financial Corporation

Symbol: FAF

NYSE

55.24

USD

Market price today

  • 26.4989

    P/E Ratio

  • 7.8172

    PEG Ratio

  • 5.70B

    MRK Cap

  • 0.04%

    DIV Yield

First American Financial Corporation (FAF) Stock Price & Analysis

Shares Outstanding

103.1M

Gross Profit Margin

0.87%

Operating Profit Margin

0.04%

Net Profit Margin

0.04%

Return on Assets

0.01%

Return on Equity

0.05%

Return on Capital Employed

0.02%

Company general description and statistics

Sector: Financial Services
Industry: Insurance - Specialty
CEO:Mr. Kenneth David DeGiorgio BA, MBA
Full-time employees:19210
City:Santa Ana
Address:1 First American Way
IPO:2010-05-28
CIK:0001472787

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Specialty Insurance segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services. This segment also provides closing and/or escrow services; products, services, and solutions to mitigate risk or otherwise facilitate real estate transactions; and appraisals and other valuation-related products and services, lien release and document custodial services, warehouse lending services, default-related products and services, mortgage subservicing, and related products and services, as well as banking, trust, and wealth management services. In addition, it accommodates tax-deferred exchanges of real estate; and maintains, manages, and provides access to title plant data and records. This segment offers its products through a network of direct operations and agents in 49 states and in the District of Columbia, as well as in Canada, the United Kingdom, Australia, South Korea, and internationally. The Specialty Insurance segment provides property and casualty insurance comprising coverage to residential homeowners and renters for liability losses and typical hazards, such as fire, theft, vandalism, and other types of property damage. It also offers residential service contracts that cover residential systems, such as heating and air conditioning systems, and appliances against failures that occur as the result of normal usage during the coverage period. First American Financial Corporation was founded in 1889 and is headquartered in Santa Ana, California.

General Outlook

In simple terms, First American Financial Corporation has 103.1 M shares that people are buying and selling right now. When we look at how much money they make before expenses, they keep 0.866% as profit. This shows they're good at controlling costs and are financially stable. Their operating profit, which is money made from regular business activities, is 0.044%. This means they run their business efficiently. Lastly, after paying all their bills, they still have a profit of 0.036%. This tells us they're good at keeping money after all costs.

Return on Investments

The company's asset efficiency, represented by a robust 0.013% return, is a testament to First American Financial Corporation's adeptness in optimizing resource deployment. First American Financial Corporation's utilization of its assets to generate profits is strikingly evident through a noteworthy return on equity of 0.046%. Furthermore, the proficiency of First American Financial Corporation in capital utilization is underscored by a remarkable 0.017% return on capital employed.

Stock Prices

First American Financial Corporation's stock prices have been subject to undulating patterns. The peak stock value during this interval surged to $61, while its low point bottomed out at $59.54. This variance in figures offers investors a lucid insight into the roller-coaster ride that is First American Financial Corporation's stock market.

Liquidity Ratios

Analyzing FAF liquidity ratios reveals its financial health of the firm. The current ratio of 281.14% gauges short-term asset coverage for liabilities. The quick ratio (376.40%) assesses immediate liquidity, while the cash ratio (281.14%) indicates cash reserves.

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Current Ratio281.14%
Quick Ratio376.40%
Cash Ratio281.14%

Profitability Ratios

FAF profitability indicators offer a lens into its earnings landscape. A pretax profit margin of 4.57% underscores its earnings before tax deductions. The effective tax rate stands at 21.47%, revealing its tax efficiency. The net income per EBT, 79.01%, and the EBT per EBIT, 102.96%, provide insights into its earnings hierarchy. Lastly, with an EBIT per revenue ratio of 4.44%, we grasp its operational profitability.

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Pretax Profit Margin4.57%
Effective Tax Rate21.47%
Net Income per EBT79.01%
EBT per EBIT102.96%
EBIT per Revenue4.44%

Operational Efficiency

Operational metrics shed light on its business agility. With an operating cycle of 2.81, it details the span from stock purchase to revenue. The 4 days it takes to settle debts showcases its creditor relations. Meanwhile, a 3 cash conversion cycle and 1026.06% receivables turnover rate reflect its cash flow efficiency and credit management, respectively.

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Days of Sales Outstanding376
Days of Inventory Outstanding-1926
Operating Cycle-1890.20
Days of Payables Outstanding29
Cash Conversion Cycle-1919
Receivables Turnover10.26
Payables Turnover12.71
Inventory Turnover-0.19
Fixed Asset Turnover6.13
Asset Turnover0.36

Cash Flow Ratios

Peering into the cash flow metrics reveals liquidity and operational efficiency. The operating cash flow per share, 3.41, and free cash flow per share, 0.87, depict cash generation on a per-share basis. The cash per share value, 40.79, showcases liquidity position. A payout ratio of 1.00 highlights the portion of earnings distributed as dividends. Lastly, the operating cash flow sales ratio, 0.06, offers insight into cash flow relative to sales.

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Operating Cash Flow per Share3.41
Free Cash Flow per Share0.87
Cash per Share40.79
Payout Ratio1.00
Operating Cash Flow Sales Ratio0.06
Free Cash Flow to Operating Cash Flow Ratio0.26
Cash Flow Coverage Ratio0.16
Short Term Coverage Ratio0.42
Capital Expenditure Coverage Ratio1.35
Dividend Paid and Capex Coverage Ratio0.74
Dividend Payout Ratio0.03

Debt and Leverage Ratios

Diving into debt and leverage metrics unveils the company's financial structure. The debt ratio, at 13.37%, highlights its total liabilities relative to assets. With a debt-equity ratio of 0.46, we discern the balance between debt and equity financing. The long-term debt to capitalization, 22.33%, and total debt to capitalization, 31.67%, ratios shed light on its capital structure. An interest coverage of 2.01 indicates its ability to manage interest expenses.

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Debt Ratio13.37%
Debt Equity Ratio0.46
Long Term Debt to Capitalization22.33%
Total Debt to Capitalization31.67%
Interest Coverage2.01
Cash Flow to Debt Ratio0.16
Company Equity Multiplier3.47

Per Share Data

Speaking about the per share data offers a perceptive view of financial distribution. The revenue per share, 57.56, provides a glimpse into top-line earnings distributed across each share. Net income per share, 2.08, reflects the portion of profit attributed to each share. The book value per share, 46.48, represents the net asset value distributed per share, while the tangible book value per share, 10.49, excludes intangible assets.

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Revenue Per Share57.56
Net Income Per Share2.08
Book Value Per Share46.48
Tangible Book Value Per Share10.49
Shareholders Equity Per Share46.48
Interest Debt Per Share22.82
Capex Per Share-2.53

Growth Ratios

Delving into growth metrics provides a snapshot of financial expansion. The revenue growth rate, -21.06%, indicates top-line expansion, while the gross profit growth, -6.24%, reveals profitability trends. EBIT growth, -15.83%, and operating income growth, -15.83%, offer insights into operational profitability progression. The net income growth, -17.57%, showcases bottom-line expansion, and the EPS growth, -15.45%, measures the growth in earnings per share.

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Revenue Growth-21.06%
Gross Profit Growth-6.24%
EBIT Growth-15.83%
Operating Income Growth-15.83%
Net Income Growth-17.57%
EPS Growth-15.45%
EPS Diluted Growth-15.51%
Weighted Average Shares Growth-2.52%
Weighted Average Shares Diluted Growth-2.52%
Dividends per Share Growth2.40%
Operating Cash Flow Growth-54.58%
Free Cash Flow Growth-82.52%
10-Year Revenue Growth per Share24.26%
5-Year Revenue Growth per Share12.77%
3-Year Revenue Growth per Share-8.42%
10-Year Operating CF Growth per Share-3.97%
5-Year Operating CF Growth per Share-51.77%
3-Year Operating CF Growth per Share-64.69%
10-Year Net Income Growth per Share19.33%
5-Year Net Income Growth per Share-50.67%
3-Year Net Income Growth per Share-66.33%
10-Year Shareholders Equity Growth per Share102.73%
5-Year Shareholders Equity Growth per Share39.89%
3-Year Shareholders Equity Growth per Share6.74%
10-Year Dividend per Share Growth per Share332.91%
5-Year Dividend per Share Growth per Share31.03%
3-Year Dividend per Share Growth per Share17.86%
Receivables Growth-27.94%
Inventory Growth-149.58%
Asset Growth-14.46%
Book Value per Share Growth6.62%
Debt Growth-38.89%
SGA Expenses Growth-15.00%

Other Metrics

Venturing into other key metrics unveils diverse facets of financial performance. The enterprise value, 4,509,692,000, captures the company's total value, considering both debt and equity. Income quality, 1.63, assesses the reliability of reported earnings. The ratio of intangibles to total assets, 15.56%, indicates the value of non-physical assets, and capex to operating cash flow, -74.34%, measures reinvestment capability.

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Enterprise Value4,509,692,000
Income Quality1.63
Sales General and Administrative to Revenue0.33
Intangibles to Total Assets15.56%
Capex to Operating Cash Flow-74.34%
Capex to Revenue-4.39%
Capex to Depreciation-139.73%
Stock-Based Compensation to Revenue0.82%
Graham Number46.63
Return on Tangible Assets1.53%
Graham Net Net-89.96
Working Capital2,322,900,000
Tangible Asset Value2,249,100,000
Net Current Asset Value-8,334,700,000
Average Receivables698,550,000
Average Payables57,150,000
Average Inventory2,158,900,000
Days Sales Outstanding36
Days Payables Outstanding22
Days of Inventory On Hand-1453
ROIC3.04%
ROE0.04%

Valuation Ratios

Exploring the valuation ratios offers insights into perceived market value. The price to book value ratio, 1.18, and the price to book ratio, 1.18, reflect the market's valuation relative to the company's book value. The price to sales ratio, 0.95, provides a perspective on valuation in relation to sales. Ratios like price to free cash flows, 62.65, and price to operating cash flows, 16.21, gauge market valuation against cash flow metrics.

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Price Book Value Ratio1.18
Price to Book Ratio1.18
Price to Sales Ratio0.95
Price Cash Flow Ratio16.21
Price Earnings to Growth Ratio7.82
Enterprise Value Multiple24.69
Price Fair Value1.18
Price to Operating Cash Flow Ratio16.21
Price to Free Cash Flows Ratio62.65
Price to Tangible Book Ratio1.39
Enterprise Value to Sales0.75
Enterprise Value Over EBITDA9.74
EV to Operating Cash Flow12.73
Earnings Yield3.23%
Free Cash Flow Yield1.35%
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Frequently Asked Question

How many company shares are outstanding in 2024?

There are stock number shares outstanding of First American Financial Corporation (FAF) on the NYSE in 2024.

What is P/E ratio of enterprise in 2024?

The current P/E ratio of enterprise is 26.499 in 2024.

What is the ticker symbol of First American Financial Corporation stock?

The ticker symbol of First American Financial Corporation stock is FAF.

What is company IPO date?

IPO date of First American Financial Corporation is 2010-05-28.

What is company current share price?

Current share price is 55.240 USD.

What is stock market cap today?

The market cap of stock today is 5695244000.000.

What is PEG ratio in 2024?

The current 7.817 is 7.817 in 2024.

What is the number of employees in 2024?

In 2024 the company has 19210.