First American Financial Corp.

  • Market Cap: Small Cap
  • Industry: Insurance
  • ISIN: US31847R1023
USD
74.22
-0.93 (-1.24%)
  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Old Republic International Corp.
Essent Group Ltd.
First American Financial Corp.
Stewart Information Services Corp.
Radian Group Inc.
Investors Title Co.
Assured Guaranty Ltd.
Fidelity National Financial, Inc.
MBIA, Inc.
Tiptree, Inc.
Ambac Financial Group, Inc.

Why is First American Financial Corp. ?

1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 10.22%
2
With a growth in Net Profit of 96.9%, the company declared Outstanding results in Jun 25
  • OPERATING CASH FLOW(Y) Highest at USD 870.5 MM
  • DIVIDEND PER SHARE(HY) Highest at USD 0
  • RAW MATERIAL COST(Y) Fallen by 0% (YoY)
stock-recommendationReal-Time Research Report

Verdict Report

How much should you buy?

  1. Overall Portfolio exposure to First American Financial Corp. should be less than 10%
  2. Overall Portfolio exposure to Insurance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Insurance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is First American Financial Corp. for you?

Low Risk, Medium Return

Absolute
Risk Adjusted
Volatility
First American Financial Corp.
18.68%
0.81
27.43%
S&P 500
22.36%
0.70
20.15%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
1.01%
EBIT Growth (5y)
0
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
21.11%
Dividend Payout Ratio
36.36%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
0
ROE (avg)
10.22%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
1.08
EV to EBIT
NA
EV to EBITDA
27.94
EV to Capital Employed
1.08
EV to Sales
0.81
PEG Ratio
0.03
Dividend Yield
3.78%
ROCE (Latest)
ROE (Latest)
11.31%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Sideways
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company
OPERATING CASH FLOW(Y)

Highest at USD 1,004 MM

ROCE(HY)

Highest at 13.87%

DIVIDEND PER SHARE(HY)

Highest at USD 0

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -15.52 %

NET SALES(Q)

Highest at USD 2,117.3 MM

NET PROFIT(Q)

Highest at USD 218.5 MM

EPS(Q)

Highest at USD 2.12

-18What is not working for the Company
ROCE(HY)

Lowest at 0%

INTEREST COVERAGE RATIO(Q)

Lowest at 117.29

DIVIDEND PAYOUT RATIO(Y)

Lowest at 25.93%

NET SALES(Q)

Lowest at USD 195.7 MM

INTEREST(Q)

Highest at USD 45.7 MM

OPERATING PROFIT(Q)

Lowest at USD -1,592 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -813.49 %

Here's what is working for First American Financial Corp.

Operating Cash Flow
Highest at USD 1,004 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share
Highest at USD 0 and Grown
In each year in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales
Highest at USD 2,117.3 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (USD MM)

Net Profit
Highest at USD 218.5 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (USD MM)

EPS
Highest at USD 2.12
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio
Lowest at -15.52 %
in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost
Fallen by 0% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for First American Financial Corp.

Net Sales
At USD 195.7 MM has Fallen at -89.84%
over average net sales of the previous four periods of USD 1,926.98 MM
MOJO Watch
Near term sales trend is extremely negative

Net Sales (USD MM)

Interest Coverage Ratio
Lowest at 117.29
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales
Lowest at USD 195.7 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (USD MM)

Interest
Highest at USD 45.7 MM
in the last five periods and Increased by 9.07% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit
Lowest at USD -1,592 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin
Lowest at -813.49 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Dividend Payout Ratio
Lowest at 25.93%
in the last five years
MOJO Watch
Company is distributing lower proportion of profits generated as dividend

DPR (%)