First American Financial
Market Cap
US$6.7b
Last Updated
2019/10/18 00:15 UTC
Data Sources
Company Financials +
Executive Summary
First American Financial Corporation, through its subsidiaries, provides financial services.
Snowflake
Fundamentals
Proven track record and fair value.
Similar Companies
Share Price & News
How has First American Financial's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
1.2%
FAF
0.7%
US Insurance
1.8%
US Market
1 Year Return
29.9%
FAF
13.5%
US Insurance
7.3%
US Market
Return vs Industry: FAF exceeded the US Insurance industry which returned 13.5% over the past year.
Return vs Market: FAF exceeded the US Market which returned 7.3% over the past year.
Shareholder returns
| FAF | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.2% | 0.7% | 1.8% |
| 30 Day | 3.1% | -2.2% | -0.7% |
| 90 Day | 8.3% | -2.0% | 0.06% |
| 1 Year | 34.2%29.9% | 16.3%13.5% | 9.7%7.3% |
| 3 Year | 68.2%53.0% | 43.7%32.7% | 46.3%36.9% |
| 5 Year | 134.2%101.3% | 70.9%50.5% | 64.5%46.5% |
Price Volatility Vs. Market
How volatile is First American Financial's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
The First American Financial (NYSE:FAF) Share Price Has Gained 107%, So Why Not Pay It Some Attention?2 weeks ago | Simply Wall St
If You Like EPS Growth Then Check Out First American Financial (NYSE:FAF) Before It's Too Late4 weeks ago | Simply Wall St
Does First American Financial Corporation's (NYSE:FAF) CEO Salary Compare Well With Others?Valuation
Is First American Financial undervalued compared to its fair value and its price relative to the market?
31.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: FAF ($59.75) is trading below our estimate of fair value ($86.58)
Significantly Undervalued: FAF is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: FAF is good value based on its PE Ratio (12.5x) compared to the Insurance industry average (15.6x).
PE vs Market: FAF is good value based on its PE Ratio (12.5x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
Low PEG Ratio: FAF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: FAF is overvalued based on its PB Ratio (1.6x) compared to the US Insurance industry average (1.2x).
Next Steps
Future Growth
How is First American Financial forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
-1.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FAF's earnings are forecast to decline over the next 3 years (-1.5% per year).
Earnings vs Market: FAF's earnings are forecast to decline over the next 3 years (-1.5% per year).
High Growth Earnings: FAF's earnings are forecast to decline over the next 3 years.
Revenue vs Market: FAF's revenue (2% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: FAF's revenue (2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: FAF's Return on Equity is forecast to be low in 3 years time (12.5%).
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Past Performance
How has First American Financial performed over the past 5 years?
19.1%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: FAF's earnings have grown by 19.1% per year over the past 5 years.
Accelerating Growth: FAF's earnings growth over the past year (13.8%) is below its 5-year average (19.1% per year).
Earnings vs Industry: FAF earnings growth over the past year (13.8%) exceeded the Insurance industry 1.4%.
Return on Equity
High ROE: FAF's Return on Equity (13.3%) is considered low.
Return on Assets
ROA vs Industry: FAF has a higher Return on Assets than the Insurance industry average last year.
Return on Capital Employed
ROCE Improving: FAF has improved its Return on Capital Employed over the past 3 years.
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Financial Health
How is First American Financial's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: FAF has a low level of unsold assets or inventory.
Debt Coverage by Assets: FAF's debt is covered by short term assets (assets are 2.164520x debt).
Financial Institutions Analysis
Asset Level: FAF's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if FAF has a sufficient allowance for bad loans.
Low Risk Liabilities: FAF reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if FAF has an acceptable proportion of non-loan assets held.
Low Risk Deposits: FAF has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if FAF has an appropriate level of bad loans.
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Dividend
What is First American Financial's current dividend yield, its reliability and sustainability?
2.81%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: FAF's dividend (2.81%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: FAF's dividend (2.81%) is low compared to the top 25% of dividend payers in the US market (3.72%).
Stable Dividend: Whilst dividend payments have been stable, FAF has been paying a dividend for less than 10 years.
Growing Dividend: FAF's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (35.2%), FAF's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FAF's dividends in 3 years are forecast to be well covered by earnings (36.4% payout ratio).
Next Steps
Management
What is the CEO of First American Financial's salary, the management and board of directors tenure and is there insider trading?
7.8yrs
Average management tenure
CEO
Dennis Gilmore (61yo)
9.3yrs
Tenure
US$8,402,957
Compensation
Mr. Dennis Joseph Gilmore is Chief Executive Officer of First American Financial Corporation (also known as Financial Services Group). Mr. Gilmore is Chief Executive Officer, President and Director of Firs ...
CEO Compensation Analysis
Compensation vs. Market: Dennis's total compensation ($USD8.40M) is about average for companies of similar size in the US market ($USD6.79M).
Compensation vs Earnings: Dennis's compensation has been consistent with company performance over the past year.
Management Age and Tenure
7.8yrs
Average Tenure
52yo
Average Age
Experienced Management: FAF's management team is seasoned and experienced (7.8 years average tenure).
Board Age and Tenure
7.6yrs
Average Tenure
65yo
Average Age
Experienced Board: FAF's board of directors are considered experienced (7.6 years average tenure).
Insider Trading
Insider Buying: FAF insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Other Key Executive Chief Operating Officer of First American Title Insurance Company |
| Shares | 10,006 |
| Max Price | US$57.99 |
| Entity | Individual |
| Role | Other Key Executive Chief Operating Officer of First American Title Insurance Company |
| Shares | 35,235 |
| Max Price | US$54.44 |
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President |
| Shares | 26,658 |
| Max Price | US$57.00 |
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President |
| Shares | 1,400 |
| Max Price | US$58.24 |
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President |
| Shares | 4,312 |
| Max Price | US$51.14 |
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President |
| Shares | 7,052 |
| Max Price | US$51.07 |
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President |
| Shares | 14,177 |
| Max Price | US$51.53 |
Ownership Breakdown
Management Team
Mark Seaton (41yo)
Executive VP & CFO
- Tenure: 6.6yrs
- Compensation: US$3.16m
Christopher Leavell (56yo)
Chief Operating Officer of First American Title Insurance Company
- Tenure: 7.8yrs
- Compensation: US$3.92m
Ken DeGiorgio (48yo)
Executive Vice President
- Tenure: 9.3yrs
- Compensation: US$4.09m
George Livermore (58yo)
Executive Vice President of Data and Mortgage Solutions
- Tenure: 0yrs
Dennis Gilmore (61yo)
CEO & Director
- Tenure: 9.3yrs
- Compensation: US$8.40m
Mark Fleming
Chief Economist
- Tenure: 4.9yrs
Craig Barberio
Director of Investor Relations
- Tenure: 9.8yrs
Mark Rutherford
Senior Vice President of Human Resources
- Tenure: 11.8yrs
Matthew Wajner (43yo)
VP & Chief Accounting Officer
- Tenure: 6.6yrs
- Compensation: US$689.31k
Dianna Serio
Senior Vice President of Enterprise Data Strategy
- Tenure: 4.9yrs
Board Members
Park Kennedy (71yo)
Independent Chairman of the Board
- Tenure: 9.3yrs
- Compensation: US$369.98k
Mark Oman (64yo)
Independent Director
- Tenure: 6.6yrs
- Compensation: US$211.98k
Mike McKee (73yo)
Independent Director
- Tenure: 8.6yrs
- Compensation: US$224.98k
James Doti (73yo)
Lead Independent Director
- Tenure: 0yrs
- Compensation: US$263.98k
Thomas McKernan (74yo)
Independent Director
- Tenure: 8.6yrs
- Compensation: US$201.98k
Martha Wyrsch (61yo)
Independent Director
- Tenure: 1.4yrs
- Compensation: US$126.95k
Dennis Gilmore (61yo)
CEO & Director
- Tenure: 9.3yrs
- Compensation: US$8.40m
Meg McCarthy (65yo)
Independent Director
- Tenure: 4.3yrs
- Compensation: US$204.50k
Reggie Gilyard (55yo)
Independent Director
- Tenure: 2.4yrs
- Compensation: US$197.98k
Company Information
First American Financial Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: First American Financial Corporation
- Ticker: FAF
- Exchange: NYSE
- Founded: 1889
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: US$6.698b
- Shares outstanding: 112.10m
- Website: https://www.firstam.com
Number of Employees
Location
- First American Financial Corporation
- 1 First American Way
- Santa Ana
- California
- 92707
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FAF | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | May 2010 |
| Y1F | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | May 2010 |
Biography
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 Serv ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/18 00:15 |
| End of Day Share Price | 2019/10/17 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.