First American Financial Corporation (FAF) 10-Year Financial Performance & Capital Metrics

FAF • • Insurance & Managed Care

Financial ServicesSpecialty InsuranceTitle InsuranceTitle Insurance Underwriters

AboutFirst 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.Show more

Revenue $6.12B +2.0%
Combined Ratio 97.3% +2.0%
Net Income $131M -39.5%
Return on Equity 2.68% -41.0%
Medical Cost Ratio 38.63% +1.3%
Operating Margin 2.7% -40.9%
Net Margin 2.14% -40.7%
ROA 0.83% -30.5%
Equity / Assets 33.05% +14.2%
Book Value per Share 47.24 +1.6%
Tangible BV/Share 22.28 +3.6%
Debt/Equity 0.49 +8.9%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓14 consecutive years of dividend growth
✓Low loss ratio of 38.6%
✓Healthy dividend yield of 3.5%
✓Trading at only 1.3x book value

✗Weaknesses

✗Weak 3Y average ROE of 4.1%
✗Profits declining 28.6% over 5 years
✗Dividend payout exceeds 100% of earnings

Price & Volume

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Growth Metrics

Revenue CAGR

10Y2.72%

5Y-0.25%

3Y-12.75%

TTM20.68%

Profit (Net Income) CAGR

10Y-5.61%

5Y-28.61%

3Y-52.73%

TTM419.72%

EPS CAGR

10Y-5.2%

5Y-27.34%

3Y-51.64%

TTM421.35%

ROCE

10Y Avg4.74%

5Y Avg4.74%

3Y Avg1.47%

Latest1.04%

Peer Comparison

Title Insurance Underwriters

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
FAFFirst American Financial Corporation	6.17B	60.57	48.07	2.04%	6.81%	9.06%	11%	0.49
ITICInvestors Title Company	481.71M	255.20	15.54	14.93%	11.86%	8.56%	4.65%	0.03
FNFFidelity National Financial, Inc.	14.31B	52.73	11.34	15.92%	8.52%	12.52%	46.61%	0.55

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Revenue+	5.18B	5.58B	5.77B	5.75B	6.2B	7.08B	9.21B	7.59B	6B	6.12B
Revenue Growth %	0.11%	0.08%	0.03%	-0%	0.08%	0.14%	0.3%	-0.18%	-0.21%	0.02%
Medical Costs & Claims+	2.15B	2.29B	2.31B	2.25B	2.32B	2.76B	3.58B	3.32B	2.29B	2.36B
Medical Cost Ratio %	-	-	-	-	-	-	-	-	-	-
Gross Profit+	3.03B	3.29B	3.45B	3.49B	3.88B	4.32B	5.64B	4.28B	3.71B	3.76B
Gross Margin %	-	-	-	-	-	-	-	-	-	-
Gross Profit Growth %	0.1%	0.09%	0.05%	0.01%	0.11%	0.11%	0.31%	-0.24%	-0.13%	0.01%
Operating Expenses+	2.59B	2.81B	3.01B	2.88B	2.97B	3.39B	4B	3.95B	3.44B	3.59B
OpEx / Revenue %	-	-	-	-	-	-	-	-	-	-
Depreciation & Amortization	85.6M	99.05M	128.05M	125.93M	129M	149M	158.4M	167.5M	188.5M	207.4M
Combined Ratio %	-	-	-	-	-	-	-	-	-	-
Operating Income+	432.76M	477.58M	445.33M	609.54M	905M	923M	1.64B	325.7M	274.4M	165.4M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	0.23%	0.1%	-0.07%	0.37%	0.48%	0.02%	0.78%	-0.8%	-0.16%	-0.4%
EBITDA+	518.36M	576.63M	573.38M	735.47M	1.03B	1.07B	1.8B	493.2M	462.9M	372.8M
EBITDA Margin %	-	-	-	-	-	-	-	-	-	-
Interest Expense	29.11M	32.21M	35.99M	40.98M	48M	57M	72.4M	93M	132.5M	149.6M
Non-Operating Income	-29.11M	-32.21M	-35.99M	-40.98M	-48M	-57M	-72.4M	-93M	-132.5M	-149.6M
Pretax Income+	432.76M	477.58M	445.33M	609.54M	905M	923M	1.64B	325.7M	274.4M	165.4M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	143.9M	134.1M	23.47M	133.64M	195M	223M	392.2M	60.4M	58.9M	32.8M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	288.09M	342.99M	423.05M	474.5M	707M	696M	1.24B	263M	216.8M	131.1M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.23%	0.19%	0.23%	0.12%	0.49%	-0.02%	0.78%	-0.79%	-0.18%	-0.4%
EPS (Diluted)+	2.62	3.09	3.76	4.19	6.22	6.16	11.14	2.45	2.07	1.26
EPS Growth %	0.22%	0.18%	0.22%	0.11%	0.48%	-0.01%	0.81%	-0.78%	-0.16%	-0.39%
EPS (Basic)	2.65	3.10	3.79	4.21	6.26	6.18	11.18	2.46	2.08	1.26
Diluted Shares Outstanding	109.83M	111.16M	112.44M	113.28M	113.66M	113.02M	111.4M	107.3M	104.6M	104.3M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Assets+	11.02B	11.85B	13.06B	14.38B	11.52B	12.8B	16.47B	19.64B	16.8B	14.91B
Asset Growth %	0.08%	0.08%	0.1%	0.1%	-0.2%	0.11%	0.29%	0.19%	-0.14%	-0.11%
Total Investment Assets+	4.6B	4.96B	5.22B	6.07B	6.83B	7.85B	10.6B	17.91B	8.53B	8.65B
Long-Term Investments	4.6B	4.96B	5.22B	6.07B	6.31B	7.11B	10.54B	8.92B	7.89B	7.96B
Short-Term Investments	0	0	0	0	0	0	58M	8.99B	0	0
Total Current Assets+	1.28B	1.31B	1.7B	1.92B	0	0	2.3B	10.21B	0	0
Cash & Equivalents	1.05B	1.03B	1.43B	1.5B	1.53B	1.32B	1.23B	1.22B	3.66B	1.8B
Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Assets	0	0	0	0	-1.87B	-1.71B	2.94B	-29M	-4.25B	-2.24B
Goodwill & Intangibles+	1.01B	1.1B	1.21B	1.25B	1.82B	2.16B	1.81B	1.99B	2.61B	2.6B
Goodwill	964.34M	1.02B	1.11B	1.14B	1.15B	1.38B	1.59B	1.8B	1.81B	1.8B
Intangible Assets	48.11M	78.9M	99.91M	109.37M	671.51M	779M	218M	194M	806.2M	799.1M
PP&E (Net)	409.97M	434.05M	439.57M	457.84M	733.4M	711M	755M	885M	978.9M	959.8M
Other Assets	-4.6B	-4.96B	-5.22B	-16.64M	-8.86B	-9.97B	-14M	-9.86B	-11.49B	-11.52B
Total Liabilities	8.25B	8.83B	9.57B	10.63B	7.09B	7.87B	10.68B	14.96B	11.94B	9.98B
Total Debt+	585.1M	736.69M	732.81M	808.33M	1.33B	1.82B	2.46B	1.92B	2.19B	2.42B
Net Debt	-465.44M	-290.67M	-695.75M	-695.01M	-200.96M	502M	1.23B	1.06B	-1.47B	616.8M
Long-Term Debt	576.03M	731.84M	732.81M	572.02M	568.23M	1.01B	1.65B	1.39B	1.09B	1.55B
Short-Term Debt	0	0	0	0	438.41M	516M	538M	343M	853.3M	643.8M
Total Current Liabilities+	271.3M	298.55M	313.88M	283.39M	0	0	625M	258M	0	0
Accounts Payable	55.8M	59.27M	68.46M	47.08M	58.58M	56M	87M	51M	63.3M	66.7M
Deferred Revenue	207.93M	228.91M	240.82M	243.28M	0	0	14M	197M	0	0
Other Current Liabilities	-320.47M	-345.97M	-364.62M	-350.08M	-844.85M	-1.1B	-567M	-1.03B	-1.35B	-1.19B
Deferred Taxes	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Liabilities	4.57B	3.1B	3.37B	4.07B	-1.41B	-1.87B	0	8.63B	-1.6B	-2.13B
Total Equity+	2.76B	3.01B	3.48B	3.75B	4.43B	4.92B	5.78B	4.69B	4.86B	4.93B
Equity Growth %	0.07%	0.09%	0.16%	0.08%	0.18%	0.11%	0.17%	-0.19%	0.04%	0.01%
Shareholders Equity	2.76B	3.01B	3.48B	3.74B	4.42B	4.91B	5.77B	4.67B	4.85B	4.91B
Minority Interest	3.16M	6.17M	3.07M	3.51M	4.52M	12M	16M	23M	14.7M	18.5M
Retained Earnings	846.69M	1.05B	1.31B	1.64B	2.16B	2.65B	3.68B	3.72B	3.71B	3.62B
Common Stock	1K	1K	1K	1K	1K	0	0	0	0	0
Accumulated OCI	-239M	-230.4M	-67.51M	-160.57M	-41.49M	40M	-92M	-868M	-655.8M	-496.4M
Return on Equity (ROE)	0.11%	0.12%	0.13%	0.13%	0.17%	0.15%	0.23%	0.05%	0.05%	0.03%
Return on Assets (ROA)	0.03%	0.03%	0.03%	0.03%	0.05%	0.06%	0.08%	0.01%	0.01%	0.01%
Equity / Assets	-	-	-	-	-	-	-	-	-	-
Debt / Equity	0.21x	0.24x	0.21x	0.22x	0.30x	0.37x	0.43x	0.41x	0.45x	0.49x
Book Value per Share	25.15	27.12	30.98	33.06	38.93	43.55	51.91	43.69	46.49	47.24
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	551.32M	489.42M	632.13M	793.16M	913.09M	1.08B	1.22B	780M	354.3M	897.5M
Operating CF Growth %	0.53%	-0.11%	0.29%	0.25%	0.15%	0.19%	0.12%	-0.36%	-0.55%	1.53%
Operating CF / Revenue %	-	-	-	-	-	-	-	-	-	-
Net Income	288.87M	343.48M	421.86M	475.9M	709.85M	700.5M	1.25B	265M	216.8M	132.6M
Depreciation & Amortization	85.6M	99.05M	128.05M	125.93M	129.02M	148.98M	158.4M	167M	188.5M	207.4M
Stock-Based Compensation	24.34M	34.13M	37.4M	41.15M	42.47M	52M	53.6M	67.3M	49.1M	52M
Deferred Taxes	27.23M	3.71M	27.27M	85.67M	-36.83M	-9.67M	0	0	0	0
Other Non-Cash Items	38.03M	9.28M	-29.98M	-865K	23.53M	67.71M	-313.9M	621.7M	171.8M	284.5M
Working Capital Changes	87.26M	-221K	47.53M	65.39M	45.05M	125.14M	72.7M	-341M	-271.9M	221M
Cash from Investing+	-974.42M	-610.15M	-387.17M	-1.22B	-452.23M	-1.42B	-3.39B	-395M	599.5M	-458.7M
Capital Expenditures	-123.7M	-132.26M	-134.21M	-118.17M	-106.98M	-114.08M	-160.5M	-260M	-263.4M	-218.3M
Acquisitions	-26.68M	-106.72M	-82.99M	-79.17M	-120.67M	-461.6M	-186.8M	-278M	-24.7M	-13.3M
Purchase of Investments	-2.12B	-2.06B	-1.97B	-3.16B	-2.34B	-2.87B	-6.35B	-3.14B	-1.47B	-6.3B
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Investing	12.71M	9.93M	-8.34M	-558K	-217.85M	-446.17M	196M	122M	-202.5M	539.7M
Cash from Financing+	266.36M	106.79M	128.02M	514.74M	-445.07M	113.92M	2.13B	-376M	1.42B	-2.31B
Dividends Paid	-108.52M	-131.54M	-159.28M	-178.49M	-188.44M	-198.66M	-213M	-217M	-216.6M	-220.7M
Share Repurchases	0	-454K	0	-18.8M	-2M	-138.6M	-99.2M	-440.7M	-72.7M	-68.5M
Stock Issued	0	0	2.73M	0	0	0	0	0	0	0
Debt Issuance (Net)	-1000K	1000K	-1000K	1000K	1000K	1000K	1000K	-1000K	-1000K	1000K
Other Financing	380.13M	83.95M	292.85M	710.77M	-450.63M	-63.41M	1.79B	451.3M	1.78B	-2.25B
Net Change in Cash+	-162.76M	-21.18M	381.09M	79.9M	18.83M	-210.49M	-47.5M	-4M	2.38B	-1.89B
Exchange Rate Effect	-1000K	-1000K	1000K	-1000K	1000K	1000K	-400K	-1000K	1000K	-1000K
Cash at Beginning	1.19B	1.03B	1.01B	1.39B	1.47B	1.49B	1.28B	1.23B	1.22B	3.61B
Cash at End	1.03B	1.01B	1.39B	1.47B	1.49B	1.28B	1.23B	1.22B	3.61B	1.72B
Free Cash Flow+	427.63M	357.15M	497.93M	675M	806.11M	970.58M	1.06B	520M	90.9M	679.2M
FCF Growth %	0.62%	-0.16%	0.39%	0.36%	0.19%	0.2%	0.09%	-0.51%	-0.83%	6.47%
FCF Margin %	-	-	-	-	-	-	-	-	-	-
FCF per Share	3.89	3.21	4.43	5.96	7.09	8.59	9.51	4.85	0.87	6.51

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Combined Ratio	91.64%	91.43%	92.28%	89.39%	85.4%	86.96%	82.19%	95.71%	95.43%	97.3%
Medical Cost Ratio	41.5%	41.07%	40.11%	39.21%	37.43%	39.04%	38.8%	43.66%	38.15%	38.63%
Return on Equity (ROE)	10.79%	11.88%	13.02%	13.13%	17.31%	14.89%	23.19%	5.02%	4.54%	2.68%
Return on Assets (ROA)	2.71%	3%	3.4%	3.46%	5.46%	5.72%	8.48%	1.46%	1.19%	0.83%
Equity / Assets	25.07%	25.45%	26.68%	26.05%	38.41%	38.47%	35.12%	23.87%	28.94%	33.05%
Book Value / Share	25.15	27.12	30.98	33.06	38.93	43.55	51.91	43.69	46.49	47.24
Debt / Equity	0.21x	0.24x	0.21x	0.22x	0.30x	0.37x	0.43x	0.41x	0.45x	0.49x
Revenue Growth	10.64%	7.74%	3.46%	-0.41%	7.9%	14.21%	30.14%	-17.58%	-21.02%	2.04%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Title Insurance And Services	307.45M	4.29B	4.38B	4.34B	4.56B	5.25B	6.86B	6.21B	5.72B	5.74B
Title Insurance And Services Growth	-	1295.76%	2.14%	-1.03%	5.15%	15.09%	30.62%	-9.42%	-7.83%	0.22%
Corporate And Eliminations	-	-	-	-	-	-	-	-	100K	-100K
Corporate And Eliminations Growth	-	-	-	-	-	-	-	-	-	-200.00%
Corporate	-	-	-	-	-	-	-	-	-	-33.4M
Corporate Growth	-	-	-	-	-	-	-	-	-	-
Specialty Insurance	393.76M	411.35M	439.47M	454.72M	471.22M	497.53M	498M	422M	-	-
Specialty Insurance Growth	-	4.47%	6.84%	3.47%	3.63%	5.58%	0.09%	-15.26%	-	-
Corporate	-	-	-	-	-	-	-	-	-	-
Corporate Growth	-	-	-	-	-	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
UNITED STATES	-	5.27B	5.48B	-	-	-	-	-	-	-
UNITED STATES Growth	-	-	4.00%	-	-	-	-	-	-	-
Non Us	-	303.35M	281.09M	-	-	-	-	-	-	-
Non Us Growth	-	-	-7.34%	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

First American Financial Corporation (FAF) has a price-to-earnings (P/E) ratio of 48.1x. This suggests investors expect higher future growth.

Growth & Financials

First American Financial Corporation (FAF) grew revenue by 2.0% over the past year. Growth has been modest.

Yes, First American Financial Corporation (FAF) is profitable, generating $482.3M in net income for fiscal year 2024 (2.1% net margin).

Dividend & Returns

Yes, First American Financial Corporation (FAF) pays a dividend with a yield of 3.49%. This makes it attractive for income-focused investors.

First American Financial Corporation (FAF) has a return on equity (ROE) of 2.7%. This is below average, suggesting room for improvement.

Industry Metrics

First American Financial Corporation (FAF) has a combined ratio of 97.3%. A ratio below 100% indicates underwriting profitability.

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