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First American Financial

DB:Y1F
Snowflake Description

Good value with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
Y1F
DB
$6B
Market Cap
  1. Home
  2. DE
  3. Insurance
Company description

First American Financial Corporation, through its subsidiaries, provides financial services. The last earnings update was 83 days ago. More info.


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Y1F Share Price and Events
7 Day Returns
3%
DB:Y1F
-0.5%
DE Insurance
-0.3%
DE Market
1 Year Returns
6.6%
DB:Y1F
20.9%
DE Insurance
-6.7%
DE Market
Y1F Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
First American Financial (Y1F) 3% 4% -1.5% 6.6% 29.3% 137.4%
DE Insurance -0.5% 3.9% 3.4% 20.9% 61.4% 63.4%
DE Market -0.3% 2.3% -2% -6.7% 11.3% 12.2%
1 Year Return vs Industry and Market
  • Y1F underperformed the Insurance industry which returned 20.9% over the past year.
  • Y1F outperformed the Market in Germany which returned -6.7% over the past year.
Price Volatility
Y1F
Industry
5yr Volatility vs Market

Value

 Is First American Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of First American Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for First American Financial.

DB:Y1F Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $39.35 * 13.4%
$5.26
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. $39.35
Discount Rate (Cost of Equity) See below 5.3%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:Y1F
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.686 (1 + (1- 21%) (19.16%))
0.859
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.859 * 5.96%)
5.35%

Discounted Cash Flow Calculation for DB:Y1F using Excess Returns Model Model

The calculations below outline how an intrinsic value for First American Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:Y1F Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.4% – 5.35%) * $39.35)
$3.16
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $3.16 / (5.35% - 0.23%)
$61.72
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $39.35 + $61.72
$101.07
DB:Y1F Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:Y1F represents 0.8722x of NYSE:FAF
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.8722x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 101.07 x 0.8722
€88.15
Value per share (EUR) From above. €88.15
Current discount Discount to share price of €48.80
= -1 x (€48.80 - €88.15) / €88.15
44.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price First American Financial is available for.
Intrinsic value
45%
Share price is €48.8 vs Future cash flow value of €88.15
Current Discount Checks
For First American Financial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • First American Financial's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • First American Financial's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for First American Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are First American Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:Y1F PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.50
NYSE:FAF Share Price ** NYSE (2019-07-17) in USD $55.95
Germany Insurance Industry PE Ratio Median Figure of 6 Publicly-Listed Insurance Companies 13.58x
Germany Market PE Ratio Median Figure of 419 Publicly-Listed Companies 20.05x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of First American Financial.

DB:Y1F PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:FAF Share Price ÷ EPS (both in USD)

= 55.95 ÷ 4.50

12.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • First American Financial is good value based on earnings compared to the DE Insurance industry average.
  • First American Financial is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does First American Financial's expected growth come at a high price?
Raw Data
DB:Y1F PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.42x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
0.2%per year
Germany Insurance Industry PEG Ratio Median Figure of 5 Publicly-Listed Insurance Companies 3.11x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

DB:Y1F PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.42x ÷ 0.2%

57.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • First American Financial is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on First American Financial's assets?
Raw Data
DB:Y1F PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $34.60
NYSE:FAF Share Price * NYSE (2019-07-17) in USD $55.95
Germany Insurance Industry PB Ratio Median Figure of 6 Publicly-Listed Insurance Companies 1.08x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.75x
DB:Y1F PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:FAF Share Price ÷ Book Value per Share (both in USD)

= 55.95 ÷ 34.60

1.62x

* Primary Listing of First American Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • First American Financial is overvalued based on assets compared to the DE Insurance industry average.
X
Value checks
We assess First American Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. First American Financial has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is First American Financial expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is First American Financial expected to grow at an attractive rate?
  • First American Financial's earnings growth is positive but not above the low risk savings rate of 0.2%.
Growth vs Market Checks
  • First American Financial's earnings growth is positive but not above the Germany market average.
  • First American Financial's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:Y1F Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:Y1F Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 0.2%
DB:Y1F Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 2.9%
Germany Insurance Industry Earnings Growth Rate Market Cap Weighted Average 4.7%
Germany Insurance Industry Revenue Growth Rate Market Cap Weighted Average 5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:Y1F Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:Y1F Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 6,326 527 1
2020-12-31 6,065 875 567 6
2019-12-31 5,937 838 569 6
DB:Y1F Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 5,754 784 508
2018-12-31 5,748 793 474
2018-09-30 5,812 661 604
2018-06-30 5,789 652 474
2018-03-31 5,753 669 441
2017-12-31 5,772 632 423
2017-09-30 5,795 693 283
2017-06-30 5,784 578 369
2017-03-31 5,691 552 349
2016-12-31 5,576 489 343
2016-09-30 5,428 451 343
2016-06-30 5,304 531 312

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • First American Financial's earnings are expected to grow by 0.2% yearly, however this is not considered high growth (20% yearly).
  • First American Financial's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:Y1F Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from First American Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:Y1F Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.56 4.56 4.56 1.00
2020-12-31 4.99 5.65 4.69 6.00
2019-12-31 5.02 5.45 4.80 6.00
DB:Y1F Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.50
2018-12-31 4.21
2018-09-30 5.37
2018-06-30 4.22
2018-03-31 3.94
2017-12-31 3.79
2017-09-30 2.54
2017-06-30 3.32
2017-03-31 3.15
2016-12-31 3.10
2016-09-30 3.12
2016-06-30 2.84

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • First American Financial is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess First American Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
First American Financial has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has First American Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare First American Financial's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • First American Financial's year on year earnings growth rate has been positive over the past 5 years.
  • First American Financial's 1-year earnings growth is less than its 5-year average (15.2% vs 19.9%)
  • First American Financial's earnings growth has exceeded the DE Insurance industry average in the past year (15.2% vs 9.4%).
Earnings and Revenue History
First American Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from First American Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:Y1F Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 5,754.04 507.84 1,769.99
2018-12-31 5,747.84 474.50 1,742.48
2018-09-30 5,812.05 603.97 1,748.51
2018-06-30 5,789.44 473.88 1,907.49
2018-03-31 5,752.71 440.99 1,894.28
2017-12-31 5,772.36 423.05 1,887.78
2017-09-30 5,795.30 282.95 1,968.13
2017-06-30 5,784.07 368.88 1,791.47
2017-03-31 5,691.18 348.77 1,772.76
2016-12-31 5,575.85 342.99 1,748.34
2016-09-30 5,428.26 343.45 1,643.15
2016-06-30 5,303.83 311.59 1,616.20
2016-03-31 5,266.08 302.68 1,605.92
2015-12-31 5,175.46 287.77 1,589.34
2015-09-30 5,074.24 286.65 1,566.09
2015-06-30 4,950.05 291.71 1,519.65
2015-03-31 4,776.23 248.93 1,466.33
2014-12-31 4,677.95 233.02 1,426.73
2014-09-30 4,642.37 204.17 1,386.90
2014-06-30 4,683.62 187.44 1,399.47
2014-03-31 4,822.11 171.59 1,410.10
2013-12-31 4,956.08 186.04 1,471.50
2013-09-30 5,013.03 227.64 1,450.54
2013-06-30 4,920.45 267.09 1,416.81
2013-03-31 4,721.82 305.28 1,374.09
2012-12-31 4,541.82 300.36 1,334.87
2012-09-30 4,261.56 247.39 1,281.13

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • First American Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • First American Financial used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.
  • First American Financial has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess First American Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
First American Financial has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is First American Financial's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up First American Financial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • First American Financial's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • First American Financial's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of First American Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from First American Financial Company Filings, last reported 3 months ago.

DB:Y1F Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,880.54 858.60 1,337.05
2018-12-31 3,745.39 808.33 1,503.34
2018-09-30 3,676.00 821.76 2,205.32
2018-06-30 3,571.22 832.56 1,226.51
2018-03-31 3,472.44 731.45 1,176.62
2017-12-31 3,483.03 732.81 1,428.56
2017-09-30 3,298.40 734.09 1,141.92
2017-06-30 3,198.16 734.46 1,166.76
2017-03-31 3,077.59 735.55 1,047.47
2016-12-31 3,014.35 736.69 1,006.14
2016-09-30 3,028.55 737.94 1,443.31
2016-06-30 2,943.97 579.47 1,241.81
2016-03-31 2,845.97 580.47 975.88
2015-12-31 2,753.12 581.05 1,027.32
2015-09-30 2,693.09 584.95 894.43
2015-06-30 2,659.25 584.54 1,269.66
2015-03-31 2,606.57 585.55 878.40
2014-12-31 2,576.04 587.34 1,190.08
2014-09-30 2,581.01 450.93 1,203.87
2014-06-30 2,546.74 454.68 1,041.26
2014-03-31 2,463.19 457.00 770.42
2013-12-31 2,456.24 310.29 834.84
2013-09-30 2,375.59 320.52 833.86
2013-06-30 2,345.50 314.78 861.84
2013-03-31 2,383.57 317.38 814.51
2012-12-31 2,351.77 229.76 670.53
2012-09-30 2,285.81 272.50 745.37
  • First American Financial's level of debt (22.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (18.5% vs 22.1% today).
  • Debt is well covered by operating cash flow (91.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 16.4x coverage).
X
Financial health checks
We assess First American Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. First American Financial has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is First American Financial's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3%
Current annual income from First American Financial dividends. Estimated to be 3.18% next year.
If you bought €2,000 of First American Financial shares you are expected to receive €60 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • First American Financial's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • First American Financial's dividend is below the markets top 25% of dividend payers in Germany (3.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:Y1F Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Germany Insurance Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:Y1F Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.80 1.00
2020-12-31 1.82 4.00
2019-12-31 1.73 4.00
DB:Y1F Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-07 1.680 3.109
2019-01-23 1.680 3.228
2018-11-06 1.680 3.658
2018-08-15 1.680 3.289
2018-05-08 1.520 2.854
2018-01-25 1.520 2.682
2017-11-08 1.520 2.677
2017-08-16 1.520 3.036
2017-05-09 1.360 3.024
2017-01-19 1.360 3.486
2016-11-08 1.360 3.621
2016-08-17 1.360 3.354
2016-05-10 1.040 2.637
2016-01-21 1.040 2.881
2015-11-05 1.000 2.744
2015-08-18 1.000 2.536
2015-05-14 1.000 2.659
2015-01-22 1.000 2.828
2014-11-05 0.960 2.946
2014-08-19 0.960 3.416
2014-03-11 0.960 3.512
2014-01-15 0.480 1.831
2013-11-06 0.480 1.797
2013-08-20 0.480 2.039
2013-05-15 0.480 2.122
2013-01-17 0.480 1.913
2012-10-25 0.480 2.018
2012-08-21 0.320 1.494
2012-05-15 0.320 1.882
2012-02-23 0.320 1.958
2011-12-13 0.240 1.750
2011-08-30 0.240 1.910
2011-05-18 0.240 1.588
2011-03-16 0.240 1.500
2010-12-07 0.240 1.550
2010-08-26 0.240 1.658
2010-06-17 0.240 1.731

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, First American Financial has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but First American Financial only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of First American Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).
X
Income/ dividend checks
We assess First American Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can First American Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. First American Financial has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of First American Financial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dennis Gilmore
COMPENSATION $8,402,957
AGE 61
TENURE AS CEO 9.1 years
CEO Bio

Mr. Dennis J. Gilmore is Chief Executive Officer of First American Financial Corporation (also known as Financial Services Group). Mr. Gilmore served as an Executive Vice President of First American Corp. and also served the same position from 2003 to 2004. He served as the President of First American Corp.'s Property Information Group, comprised of key subsidiaries First American RES, Data Trace, Data Tree LLC, eAppraiseIT, LLC and SourceOne Services Corporation from 1998 to 2005. He founded and managed the Lenders Advantage division of First American Title Insurance Company, from 1993 to 1998 and also served at First American's tax service subsidiary from 1988 to 1993. From 2008 until 2010, he served as chief executive officer of The First American Corporation’s financial services group. He served as the Chief Operating Officer of First American Corp., from November 10, 2004 to 2008. He was responsible for helping establish the strategic course of First American Corp.'s operating and technology initiatives and managing its offshore operations. He served as the President of Property Information Group of First American Corp., from 1998 to 2005. He began his career at First American in 1988 with its real estate tax service. In 1993, he transitioned to First American Title Insurance Company, establishing and helping build the subsidiary's highly successful Lenders Advantage Division. In 1998, Mr. Gilmore also served at First American Real Estate Solutions (RES) as its first President. Prior to First American, he served as a Vice President at TRTS Data Services, Inc., from 1988 to 1991. He served as a Senior Vice President in charge of loan servicing at Western Federal Savings for two years. He served at First American as a Regional Vice President of First American Real Estate Tax Service since 1993. He has been a Director at First American Financial Corporation since May 31, 2010. He has been a Member of the Advisory Board of College of Business Administration at San Diego State University (SDSU) since March 2011. Mr. Gilmore is a Graduate of San Diego State University and holds a Master Degree in Business Administration from the Loyola Marymount University.

CEO Compensation
  • Dennis's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dennis's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the First American Financial management team in years:

7.6
Average Tenure
52
Average Age
  • The average tenure for the First American Financial management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Dennis Gilmore

TITLE
CEO & Director
COMPENSATION
$8M
AGE
61
TENURE
9.1 yrs

Mark Seaton

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
41
TENURE
6.3 yrs

Matthew Wajner

TITLE
VP & Chief Accounting Officer
COMPENSATION
$689K
AGE
43
TENURE
6.3 yrs

Ken DeGiorgio

TITLE
Executive Vice President
COMPENSATION
$4M
AGE
48
TENURE
9.1 yrs

Christopher Leavell

TITLE
Chief Operating Officer of First American Title Insurance Company
COMPENSATION
$4M
AGE
56
TENURE
7.6 yrs

Craig Barberio

TITLE
Director of Investor Relations
TENURE
9.5 yrs

Mark Rutherford

TITLE
Senior Vice President of Human Resources
TENURE
11.5 yrs

George Livermore

TITLE
Executive Vice President of Data and Mortgage Solutions
AGE
58

Mark Fleming

TITLE
Chief Economist
TENURE
4.7 yrs

Dianna Serio

TITLE
Senior Vice President of Enterprise Data Strategy
TENURE
4.7 yrs
Board of Directors Tenure

Average tenure and age of the First American Financial board of directors in years:

7.3
Average Tenure
65
Average Age
  • The tenure for the First American Financial board of directors is about average.
Board of Directors

Park Kennedy

TITLE
Chairman of the Board
COMPENSATION
$370K
AGE
71
TENURE
9.1 yrs

Dennis Gilmore

TITLE
CEO & Director
COMPENSATION
$8M
AGE
61
TENURE
9.1 yrs

James Doti

TITLE
Lead Independent Director
COMPENSATION
$264K
AGE
73

Mike McKee

TITLE
Independent Director
COMPENSATION
$225K
AGE
73
TENURE
8.3 yrs

Meg McCarthy

TITLE
Independent Director
COMPENSATION
$204K
AGE
65
TENURE
4.1 yrs

Thomas McKernan

TITLE
Independent Director
COMPENSATION
$202K
AGE
74
TENURE
8.3 yrs

Mark Oman

TITLE
Independent Director
COMPENSATION
$212K
AGE
64
TENURE
6.3 yrs

Reggie Gilyard

TITLE
Independent Director
COMPENSATION
$198K
AGE
55
TENURE
2.2 yrs

Martha Wyrsch

TITLE
Director
COMPENSATION
$127K
AGE
61
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • First American Financial individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
16. May 19 Sell Christopher Leavell Individual 14. May 19 14. May 19 -35,235 €48.57 €-1,711,538
02. May 19 Sell Kenneth DeGiorgio Individual 01. May 19 01. May 19 -26,658 €50.69 €-1,351,297
30. Apr 19 Sell Kenneth DeGiorgio Individual 26. Apr 19 26. Apr 19 -1,400 €52.17 €-73,037
05. Mar 19 Sell Kenneth DeGiorgio Individual 01. Mar 19 01. Mar 19 -4,312 €44.95 €-193,804
01. Mar 19 Sell Kenneth DeGiorgio Individual 28. Feb 19 28. Feb 19 -7,052 €44.84 €-316,244
27. Feb 19 Sell Kenneth DeGiorgio Individual 25. Feb 19 26. Feb 19 -14,177 €45.34 €-642,648
24. Aug 18 Sell Matthew Wajner Individual 21. Aug 18 21. Aug 18 -4,982 €49.71 €-247,647
24. Aug 18 Sell Kenneth DeGiorgio Individual 21. Aug 18 21. Aug 18 -13,871 €49.67 €-688,926
X
Management checks
We assess First American Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. First American Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

First 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 and services involving the use of real property related data 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, and title evidence 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 records and images. 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; and auto insurance products. This segment markets its property and casualty insurance products through direct distribution channels, including marketing through its existing closing-service activities, as well as through a network of independent brokers. First American Financial Corporation was founded in 1889 and is headquartered in Santa Ana, California.

Details
Name: First American Financial Corporation
Y1F
Exchange: DB
Founded: 1889
$5,545,713,844
112,098,764
Website: http://www.firstam.com
Address: First American Financial Corporation
1 First American Way,
Santa Ana,
California, 92707,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE FAF Common Shares New York Stock Exchange US USD 24. May 2010
DB Y1F Common Shares Deutsche Boerse AG DE EUR 24. May 2010
Number of employees
Current staff
Staff numbers
18,251
First American Financial employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/17 21:25
End of day share price update: 2019/07/17 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.