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FAF

STRONG BUYFLAG

First American Financial Corporation · Financial Services · United States · $7.7B · Avg Vol: $77M/d

95
StockRank
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Q
68
V
66
M
67
P/E (TTM)
11.2x
ROE
12.8%
D/E
0.5x
Dividend %
3.0%
AI CONVICTION THESIS

First American Financial is a US title insurer whose revenue is tied directly to mortgage transaction volumes, which remain suppressed by higher-for-longer rates. The quant profile is balanced and the investment portfolio benefits from higher yields, partly offsetting. Nothing adverse is known on accounting or governance, so the default applies.

COMPANY DESCRIPTION

First American Financial Corporation provides title insurance and settlement services for residential and commercial real estate transactions, alongside property data and analytics. The company's competitive advantage lies in extensive property data assets, a strong national network of agents and direct operations, and a critical role in facilitating real estate transactions. First American is a leading provider of title insurance and settlement services in the U.S., essential for protecting property rights and enabling real estate commerce.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGRTTM2026E2027EFwd CAGR
Revenue7.6B6.0B6.1B7.4B-0.7%7.7B8.1B8.5B6.7%
EPS2.462.081.266.0234.8%6.387.107.4110.9%
Shares103.2M103.1M103.0M102.0M-1.2%101.9M
Debt2.3B2.2B2.4B2.7B5.4%2.8B
Equity4.7B4.8B4.9B5.5B5.7%
Op CF777.6M354.3M897.5M950.8M6.9%1.0B
Inv CF-393.0M599.5M-458.7M-1.5B
Fin CF-376.4M1.4B-2.3B161.2M
Loading 1Y...
PRICE (1Y)+15.9%
64.8467.4169.9872.5675.13Jun 11Jul 6Jul 24
SMA 50SMA 200
Close
$75.13
RSI (14)
63.9
52W High
$75.96
From 52W High
1.0%

SCORE BREAKDOWN

Quality
68
ROIC (ROA)
3.9%*68.9
ROE
12.8%66.7
GP/Assets
30.3%92.1
Op. Margin
11.1%30.2
FCF/Assets
10.5%89.3
Piotroski
797.0
Int. Cover
6.3x40.0
D/E Ratio
0.51x42.6
Current Ratio
0.41x16.0
Value
66
P/E (TTM)
11.2x63.9
EV/EBITDA
6.0x70.1
P/FCF
4.5x81.2
P/B
1.3x41.1
P/S
0.9x89.3
Div Yield
3.0%38.5
Momentum
67
52W High %
99%86.8
RS 6M
10%77.1
SMA 50/200
1.06x63.2
EPS Rev 4W
-0.4%48.1
EPS Rev 12W
-0.7%45.4
EPS Improve
+13%37.4
Q Growth
69%79.5

FUNDAMENTALS

Market Cap
$7.7B
P/E (Forward)
9.9x
Gross Margin
63.9%

SECTOR PEERS

Closest peers in Financial Services, ranked by industry match, size, and score similarity. Cross-listings of FAF are excluded.

TickerCompanyMkt CapStockRankSignal
FAFFirst American Financial Corporation(you)$7.7B95STRONG BUY
MTGMGIC Investment Corporation$6.3B88STRONG BUY
ACTEnact Holdings, Inc.$6.5B81STRONG BUY
RDNRadian Group Inc.$5.1B84STRONG BUY
NMIHNMI Holdings, Inc.$3.2B88STRONG BUY
FNFFidelity National Financial, Inc.$13.9B56HOLD
ITICInvestors Title Company$533M85STRONG BUY
RYANRyan Specialty Holdings, Inc.$11.0B27SELL
EIGEmployers Holdings, Inc.$908M32SELL
MCYMercury General Corporation$5.9B97STRONG BUY

Peer medians: ROE 9.4% · P/E 13.9x · Gross margin 100.0%

First American Financial Corporation (FAF) — Stock Score Summary

First American Financial Corporation (FAF) has a MoatMap StockRank of 95/100 based on Quality (68/100), Value (66/100), and Momentum (67/100) factor scores. The current signal is STRONG BUY. First American Financial is a US title insurer whose revenue is tied directly to mortgage transaction volumes, which remain suppressed by higher-for-longer rates. The quant profile is balanced and the investment portfolio benefits from higher yields, partly offsetting. Nothing adverse is known on accounting or governance, so the default applies.

First American Financial Corporation provides title insurance and settlement services for residential and commercial real estate transactions, alongside property data and analytics. The company's competitive advantage lies in extensive property data assets, a strong national network of agents and direct operations, and a critical role in facilitating real estate transactions. First American is a leading provider of title insurance and settlement services in the U.S., essential for protecting property rights and enabling real estate commerce.

Key Financial Metrics

Price$75.13
Market Cap$7.7B
P/E (TTM)11.24
P/E (Forward)9.92
Price/Book1.33
Return on Equity12.8%
Debt/Equity0.51x
Gross Margin63.9%
Operating Margin11.1%
Revenue Growth16.2%
Dividend Yield3.0%
Free Cash Flow$1.7B

First American Financial Corporation operates in the Insurance - Specialty industry, part of the Financial Services sector (United States).

Frequently Asked Questions

What is First American Financial Corporation’s (FAF) StockRank?
MoatMap’s StockRank for First American Financial Corporation (FAF) is 95/100, with a Strong Buy signal. It is a composite of Quality (68), Value (66), and Momentum (67) factor ranks across MoatMap’s 20,000+ stock universe.
Does First American Financial Corporation have an economic moat?
First American Financial Corporation (FAF) has a Quality factor score of 68/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is First American Financial Corporation a buy, hold, or sell?
MoatMap’s current signal for First American Financial Corporation (FAF) is Strong Buy, based on a StockRank of 95/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is First American Financial Corporation in?
First American Financial Corporation (FAF) operates in the Financial Services sector, specifically the Insurance - Specialty industry (United States).