Company Analysis First American Financial Corporation
1. Summary
Advantages
- Dividends (3.48%) are higher than the sector average (2.69%).
Disadvantages
- Price (65.67 $) is higher than fair price (18.16 $)
- The stock's return over the last year (-0.522%) is lower than the sector average (23.2%).
- Current debt level 11.59% has increased over 5 years from 7.6%.
- The company's current efficiency (ROE=4.47%) is lower than the sector average (ROE=10.95%)
Similar companies
2. Share price and performance
2.1. Share price
2.2. News
2.3. Market efficiency
| First American Financial Corporation | Financials | Index | |
|---|---|---|---|
| 7 days | -1.1% | -6.6% | -1.7% |
| 90 days | -3.3% | -0.4% | 4.4% |
| 1 year | -0.5% | 23.2% | 25.5% |
FAF vs Sector: First American Financial Corporation has significantly underperformed the "Financials" sector by -23.73% over the past year.
FAF vs Market: First American Financial Corporation has significantly underperformed the market by -25.99% over the past year.
Stable price: FAF is not significantly more volatile than the rest of the market on "New York Stock Exchange" over the last 3 months, with typical variations of +/- 5% per week.
Long period: FAF with weekly volatility of -0.01% over the past year.
3. Summary of the report
4. Fundamental Analysis
4.1. Stock price and price forecast
Above fair price: The current price (65.67 $) is higher than the fair price (18.16 $).
Price is higher than fair: The current price (65.67 $) is 72.3% higher than the fair price.
4.2. P/E
P/E vs Sector: The company's P/E (31.26) is lower than that of the sector as a whole (62.93).
P/E vs Market: The company's P/E (31.26) is lower than that of the market as a whole (47.35).
4.2.1 P/E Similar companies
4.3. P/BV
P/BV vs Sector: The company's P/BV (1.39) is lower than that of the sector as a whole (1.43).
P/BV vs Market: The company's P/BV (1.39) is lower than that of the market as a whole (22.69).
4.3.1 P/BV Similar companies
4.4. P/S
P/S vs Sector: The company's P/S indicator (1.13) is lower than that of the sector as a whole (3.5).
P/S vs Market: The company's P/S indicator (1.13) is lower than that of the market as a whole (15.16).
4.4.1 P/S Similar companies
4.5. EV/Ebitda
EV/Ebitda vs Sector: The company's EV/Ebitda (9.87) is higher than that of the sector as a whole (-115.29).
EV/Ebitda vs Market: The company's EV/Ebitda (9.87) is lower than that of the market as a whole (17.77).
5. Profitability
5.1. Profitability and revenue
5.2. Earnings per share - EPS
5.3. Past profitability Net Income
Yield Trend: Negative and has fallen by -13.87% over the last 5 years.
Accelerating profitability: The return for the last year (0%) exceeds the average return for 5 years (-13.87%).
Profitability vs Sector: The return for the last year (0%) exceeds the return for the sector (-62.87%).
5.4. ROE
ROE vs Sector: The company's ROE (4.47%) is lower than that of the sector as a whole (10.95%).
ROE vs Market: The company's ROE (4.47%) is lower than that of the market as a whole (17.13%).
5.5. ROA
ROA vs Sector: The company's ROA (1.29%) is lower than that of the sector as a whole (3.21%).
ROA vs Market: The company's ROA (1.29%) is lower than that of the market as a whole (6.51%).
5.6. ROIC
ROIC vs Sector: The company's ROIC (0%) is lower than that of the sector as a whole (5.17%).
ROIC vs Market: The company's ROIC (0%) is lower than that of the market as a whole (9.31%).
7. Dividends
7.1. Dividend yield vs Market
High yield: The dividend yield of the company 3.48% is higher than the average for the sector '2.69%.
7.2. Stability and increase in payments
Dividend stability: The company's dividend yield 3.48% has been steadily paid over the past 7 years, DSI=0.93.
Weak dividend growth: The company's dividend yield 3.48% has been growing weakly or stagnant over the past 5 years. Growth over only 0 years.
7.3. Payout percentage
Dividend Coverage: Current payments from income (99.91%) are at an uncomfortable level.
8. Insider trades
8.1. Insider trading
Insider Buying Exceeds insider sales by 100% over the last 3 months.
8.2. Latest transactions
| Transaction date | Insider | Type | Price | Volume | Quantity |
|---|---|---|---|---|---|
| 29.10.2024 | Adams Steven A VP & Chief Accounting Officer |
Sale | 63.76 | 149 007 | 2 337 |
| 29.10.2024 | Adams Steven A Officer |
Purchase | 63.76 | 149 007 | 2 337 |
| 28.06.2024 | Murray Amy Y Director |
Purchase | 125.17 | 150 204 | 1 200 |
| 25.10.2021 | DEGIORGIO KENNETH D President |
Sale | 74.5 | 774 800 | 10 400 |
| 22.10.2021 | DEGIORGIO KENNETH D President |
Sale | 74.71 | 1 175 860 | 15 739 |
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