FAF
First American Financial Corp
Financials • CIK: 0001472787
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Market Cap
$6.34B
P/E (TTM)
10.2x
Rev Growth (TTM)
+21.6%
Net Margin (TTM)
8.3%
FCF Yield (TTM)
12.0%
FCF Margin (TTM)
10.2%
Cash Flow Health
Free Cash Flow7/8 positive
TTM$763M
Q4 '25
$325M+45%
Q3 '25
$223M-28%
FCF Margin
TTM10.2%
Q4 '2515.8%+40%
Sector: 22.2%Below Avg
OCF Margin12.8%
OCF/NI1.53x
CapEx Coverage5.0x
FCF Yield12.0%
FCF Growth (2Y)+14%
Cash Conversion Cycle
0 days
DSO: 0+DIO: –−DPO: –
Capital Allocation & Returns
Shareholder Friendly
Total Shareholder YieldTTM
TTM5.5%
Div Yield3.5%
+Buyback (TTM)1.9%
Strong capital returns to shareholders
Dividend & Payout Metrics
Dividend Yield (TTM)3.5%
FCF Payout Ratio29.5%
Free Cash Flow (TTM)$762.5M
Stock Repurchases (TTM)$122.3M
Capital Return / FCF45.3%
Est. Dividends Paid (TTM)$225.0M
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
–
P25MedianP75
(med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
–
Asset Turnover
0.46x
8Q: 0.43x
Leverage (1+D/E)
1.00x
D/E: 0.00x
Asset & CapEx Efficiency
Fixed Asset Turn
10.43x
8Q:8.68x
+448.6%
CapEx/Depreciation
0.87x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $7.5B | $2.0B↑3.6% | $2.0B↑7.5% | $1.8B↑16.4% | $1.6B↓6.1% | $1.7B↑19.8% | $1.4B↓12.8% | $1.6B↑13.2% | $1.4B |
Operating Income | $826.2M | $287.4M↑16.4% | $247.0M↑26.5% | $195.2M↑102.1% | $96.6M↓3.3% | $99.9M↑169.2% | $-144.4M↓195.3% | $151.6M↑160.0% | $58.3M |
Net Income | $621.8M | $211.9M↑11.8% | $189.6M↑29.8% | $146.1M↑96.9% | $74.2M↑2.5% | $72.4M↑169.6% | $-104.0M↓189.7% | $116.0M↑148.4% | $46.7M |
Operating Cash Flow | $950.8M | $369.3M↑35.5% | $272.5M↓24.7% | $361.8M↑785.2% | $-52.8M↓116.3% | $324.6M↑37.0% | $236.9M↓11.2% | $266.7M↑284.8% | $69.3M |
Free Cash Flow | $762.5M | $324.5M↑45.5% | $223.1M↓27.9% | $309.4M↑427.4% | $-94.5M↓135.5% | $266.2M↑43.6% | $185.4M↓11.7% | $210.0M↑1093.2% | $17.6M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
10.2x
Volatile
8Q: 46.1x-3990%
Valuation Lenses
Earnings
10.2x
vs – sector
Cash Flow
5.5x
EV/FCF vs –
Growth-Adj
0.0xPEG
Undervalued for growth
Quality-Adj
–P/E per %ROIC
ROIC: –
Shareholder Returns
Dividend
3.5%
Buyback
1.9%
Total Yield
5.5%
Market Cap$6.34B
EV$4.21B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
77/100
High Quality
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Above Avg
12.0%
8Q:–
Return on Invested Capital (ROIC)
–
8Q:–
vs Sector:0.1%
Earnings Quality
Cash Conversion
1.53x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin–
Capital Efficiency
Invested Capital Turnover–
Working Capital
Cash Conversion Cycle0 days
Growth Quality & Momentum
Quality Growth
Growth Quality Score
77/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
21.6%
OpInc Growth YoY
187.7%
EPS Growth YoY
377.0%
FCF 3Y CAGR
13.8%
Growth Quality Analysis
✓Sustainability Index: 7.5/10 - Highly sustainable growth
Margin Quality & Sustainability
Moderate
Profitability Cascade
Gross
—
Operating
—
Net
8.3%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+1.9 pts
FCF: 10.2% | Net: 8.3%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $1.39B
Interest Coverage
–
+Net cash position: $1.39B
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis