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First American Financial Corporation (FAF) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

First American Financial Corporation

FAFMarket cap $6.36BPrice $62.3

Country🇺🇸United States

SectorFinancials

IndustryInsurance

Provides title insurance and settlement services for real estate transactions, protecting buyers and lenders from ownership disputes. Nearly every home sale in America runs through this kind of policy, making it a quiet gatekeeper of property deals nationwide.

In Bastion Portfolios?

52W Return+6%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-1%3

Revenue Forecast

Rev CAGR (1y)+10%6

Rev CAGR (3y)+5%4

Rev CAGR (5y)+4%3

Earnings Forecast

EPS Growth Y+1+475%10

EPS Growth Y+2-0%3

EPS Growth Y+3+3%4

Quality

Margins

EBIT Margin14%6

Net Income Margin9%5

Free Cash Flow Margin10%6

Debt

Net Debt/EBITDA0.19

Efficiency

ROE14%6

ROA4%6

Earnings Stability55

GEAR+STRONG73

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)99

P/E Ratio (Forward 3y)89

P/BV1.19

EV Multiples

EV/EBITDA Fwd09

EV/EBIT Fwd09

Yield

Free Cash Flow Yield0.0%10

Dividend Yield3.9%8

Momentum

Short term

1 month return-14%1

3 month return-11%3

YTD return+4%5

Mid term

Price vs 52wHigh79%5

1 year return+6%5

Long term

3 year return+28%4

5 year return+5%4

Risk Shield

Price Risk

Beta0.76

Volatility30%7

Free Cash Flow

Free Cash Flow Margin10%6

Free Cash Flow Yield0.0%10

Quality

ROCE15%6

Earnings Stability55

Net Debt/EBITDA0.19

02Growth

Is it actually growing, and how fast?

FAFFirst American Financial

Revenue FY25$6.1B

GROWTH RATING↗

WEAK32 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-1%3

Revenue, next 1Y+10%6

Revenue, next 3Y, CAGR+5%4

Revenue, next 5Y, CAGR+4%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+475%10

EPS growth, FY27E-0%3

EPS growth, FY28E+3%4

GROWTH ASSESSMENT

STRENGTHS

After shrinking over the last 3 years, revenue is set to grow 5%/yr from here.

Earnings are set to grow in step with sales (EPS about 3%/yr vs revenue 5%/yr).

WATCH

Revenue is set to grow 5%/yr over the next 3 years, a little behind the market.4/10

WEAKNESSES

Growth is the weak spot here, trailing 68% of companies worldwide.

Revenue fell 0.7%/yr over the last 3 years, behind 70% of companies worldwide.3/10

Over five years revenue is set to grow 4%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Steady Grower

Growth is a weak point here: a business that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK20 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-14%1

3-month return-11%3

YTD return+4%5

MID & LONG-TERM▾SCORE

% of 52-week high79%5

1-year return+6%5

3-year return+28%4

5-year return+5%4

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+28% over three years and +4.7% over five), roughly average for the market.

It's up 6% over the past year, but 21% below its 52-week high. That is right in line with the market.

Returns sit at the market level so far this year (+4%).

WEAKNESSES

The stock is underperforming over the past month (-14%) and over three months (-11%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the stock is underperforming over the past month and over three months.

04Value

Are you paying a fair price for it?

Stop guessing on First American Financial Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

FAFFirst American Financial

Revenue FY25$6.1B

GROWTH RATING↗

WEAK32 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-1%3

Revenue, next 1Y+10%6

Revenue, next 3Y, CAGR+5%4

Revenue, next 5Y, CAGR+4%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+475%10

EPS growth, FY27E-0%3

EPS growth, FY28E+3%4

GROWTH ASSESSMENT

STRENGTHS

After shrinking over the last 3 years, revenue is set to grow 5%/yr from here.

Earnings are set to grow in step with sales (EPS about 3%/yr vs revenue 5%/yr).

WATCH

Revenue is set to grow 5%/yr over the next 3 years, a little behind the market.4/10

WEAKNESSES

Growth is the weak spot here, trailing 68% of companies worldwide.

Revenue fell 0.7%/yr over the last 3 years, behind 70% of companies worldwide.3/10

Over five years revenue is set to grow 4%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Steady Grower

Growth is a weak point here: a business that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK20 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-14%1

3-month return-11%3

YTD return+4%5

MID & LONG-TERM▾SCORE

% of 52-week high79%5

1-year return+6%5

3-year return+28%4

5-year return+5%4

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+28% over three years and +4.7% over five), roughly average for the market.

It's up 6% over the past year, but 21% below its 52-week high. That is right in line with the market.

Returns sit at the market level so far this year (+4%).

WEAKNESSES

The stock is underperforming over the past month (-14%) and over three months (-11%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on First American Financial Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community