FAF
BULLISH
$70.87
Live
First American Financial Corporation · NYSE
Target $86.75
(+22.4%)
$53.09
52W Range
$71.47
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Apr 27, 2026
Market cap
$7.25B
P/E
10.9
ROE
12.8%
Profit margin
8.7%
Debt/Equity
0.51
Dividend yield
3.09%
AI Analysis
AI-powered fundamental assessment
Confidence
85%
FAF presents a compelling value opportunity, trading significantly below its Graham Number ($88.68) and Intrinsic Value ($191.75). While the Piotroski F-Score of 4/9 indicates stable rather than strong financial health, this is offset by explosive earnings growth of 70.4% YoY and a very attractive P/E ratio of 10.90. Despite a contradictory technical scorecard, recent price action is strongly bullish, trending toward 52-week highs. The company maintains a sustainable dividend profile with a low payout ratio of 33.69%.
Key Strengths
Significant undervaluation relative to Graham Number ($88.68) and Intrinsic Value ($191.75)
Exceptional earnings growth (70.4% YoY) and strong Q/Q revenue growth (21.74%)
Low P/E ratio (10.90) compared to the broader financial services sector average
Sustainable dividend payout ratio (33.69%) providing a safety buffer
Strong track record of earnings surprises, beating estimates in 3 of the last 4 quarters
Key Risks
High PEG ratio (2.98) suggests that current growth may be difficult to sustain or is already priced in
Low current ratio (0.41) indicates potential short-term liquidity tightness
Piotroski F-Score of 4/9 suggests mediocre operational efficiency improvements
High sensitivity to interest rate fluctuations and the US housing market
Discrepancy between deterministic technical scores (10/100) and actual recent price performance
AI Fair Value Estimate
Based on comprehensive analysis
$112.5
+58.7% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
78
Strong
92
88
78
55
75
AI Verdict
Undervalued Growth
Key drivers: Deep discount to fair value metrics, Accelerating EPS growth, Low valuation multiples
Confidence
90%
Value
92/100
Ref P/E 10.90, Graham Number $88.68
Positives
- Price is ~20% below Graham Number
- P/E is significantly lower than sector average
Watchpoints
- PEG ratio is elevated at 2.98
Future
88/100
Ref Growth rates
Positives
- 70.4% YoY Earnings Growth
- 16.2% YoY Revenue Growth
Watchpoints
- Recent Q/Q EPS growth dip (-33.2%)
Past
78/100
Ref Historical trends
Positives
- Consistent history of beating earnings estimates
- Positive 5Y price change (+29.8%)
Watchpoints
- Historical volatility in quarterly EPS
Health
55/100
Ref Piotroski F-Score
Positives
- Low Debt/Equity ratio (0.51)
Watchpoints
- Piotroski F-Score 4/9 (Stable)
- Low Current Ratio (0.41)
Dividend
75/100
Ref Yield, Payout
Positives
- Healthy 3.09% yield
- Low payout ratio (33.69%)
Watchpoints
- No data on 5-year yield growth
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$70.87
Analyst Target
$86.75
Upside/Downside
+22.4%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for FAF and closest competitors.
Updated 2026-04-24
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
FAF
First American Financial Corporation
Primary
|
+29.8% | +40.7% | +17.2% | +13.1% | +21.4% | +7.4% |
|
HUT
Hut 8 Corp.
Peer
|
+85.1% | +567.5% | +463.4% | +51.7% | +29.3% | +37.4% |
|
STEP
StepStone Group Inc.
Peer
|
+85.3% | +171.4% | +19.9% | -9.8% | +17.6% | +19.7% |
|
RIOT
Riot Platforms, Inc.
Peer
|
-55.7% | +34.6% | +180.3% | -9.6% | +28.4% | +9.1% |
|
MORN
Morningstar, Inc.
Peer
|
-24.2% | -15.7% | -38.6% | -23.1% | -5.4% | -2.5% |
FAF
First American Financial Corporation
Primary
5Y
+29.8%
3Y
+40.7%
1Y
+17.2%
6M
+13.1%
1M
+21.4%
1W
+7.4%
HUT
Hut 8 Corp.
Peer
5Y
+85.1%
3Y
+567.5%
1Y
+463.4%
6M
+51.7%
1M
+29.3%
1W
+37.4%
STE
StepStone Group Inc.
Peer
5Y
+85.3%
3Y
+171.4%
1Y
+19.9%
6M
-9.8%
1M
+17.6%
1W
+19.7%
RIO
Riot Platforms, Inc.
Peer
5Y
-55.7%
3Y
+34.6%
1Y
+180.3%
6M
-9.6%
1M
+28.4%
1W
+9.1%
MOR
Morningstar, Inc.
Peer
5Y
-24.2%
3Y
-15.7%
1Y
-38.6%
6M
-23.1%
1M
-5.4%
1W
-2.5%
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
10.9
Forward P/E
9.74
PEG Ratio
2.98
P/B Ratio
1.32
P/S Ratio
0.94
EV/Revenue
0.98
EV/EBITDA
5.93
Market Cap
$7.25B
Profitability
Profit margins and return metrics
Profit Margin
8.73%
Operating Margin
11.08%
Gross Margin
63.87%
ROE
12.8%
ROA
3.94%
Growth
Revenue and earnings growth rates
Revenue Growth
+16.2%
Earnings Growth
+70.4%
Q/Q Revenue Growth
+21.74%
Q/Q Earnings Growth
+68.6%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.51
Moderate
Current Ratio
0.41
Weak
Quick Ratio
0.41
Poor
Cash/Share
$24.71
Quarterly Earnings History
EPS performance vs analyst estimates
2026-07-22
$N/A
2026-04-22
$1.33
+26.3% surprise
2026-02-11
$1.99
+38.8% surprise
2025-10-22
$1.7
+17.1% surprise
Financial Services Sector Comparison
Comparing FAF against 763 companies in the Financial Services sector
(133 bullish, 317 neutral, 313 bearish)
P/E Ratio
10.9
This Stock
vs
38.21
Sector Avg
-71.5%
(Discount)
Return on Equity (ROE)
12.8%
This Stock
vs
-1.82%
Sector Avg
-802.8%
(Below Avg)
Profit Margin
8.73%
This Stock
vs
75.74%
Sector Avg
-88.5%
(Weaker)
Debt to Equity
0.51
This Stock
vs
1.42
Sector Avg
-63.9%
(Less Debt)
Revenue Growth
16.2%
This Stock
vs
37.18%
Sector Avg
-56.4%
(Slower)
Current Ratio
0.41
This Stock
vs
3.32
Sector Avg
-87.7%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
FAF
First American Financial...
|
BULLISH | $7.25B | 10.9 | 12.8% | 8.7% | $70.87 | |
|
HUT
Hut 8 Corp.
|
BEARISH | $7.33B | - | -18.6% | -96.2% | $66.08 | Compare |
|
STEP
StepStone Group Inc.
|
NEUTRAL | $6.87B | - | -65.1% | -30.7% | $54.97 | Compare |
|
RIOT
Riot Platforms, Inc.
|
BEARISH | $6.87B | - | -22.1% | -102.4% | $18.11 | Compare |
|
MORN
Morningstar, Inc.
|
BEARISH | $6.82B | 19.41 | 26.3% | 15.3% | $172.21 | Compare |
FAF
First American...
BULLISH
Mkt Cap
$7.3B
P/E
10.9
ROE
12.8%
Price
$70.87
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-02-19 | KENNEDY PARKER STEVEN | Director | Stock Award | 2,418 | - |
| 2026-02-19 | MCKEE MICHAEL DALE | Director | Stock Award | 2,418 | - |
| 2026-02-19 | DOTI JAMES LOUIS | Director | Stock Award | 2,418 | - |
| 2026-02-19 | OMAN MARK C | Director | Stock Award | 2,418 | - |
| 2026-02-19 | GILMORE DENNIS J | Director | Stock Award | 2,418 | - |
| 2026-02-19 | DAILEY JEFFREY J | Director | Stock Award | 2,418 | - |
| 2026-02-19 | MCCARTHY MARGARET M | Director | Stock Award | 2,418 | - |
| 2026-02-19 | SEATON MARK EDWARD | Chief Executive Officer | Stock Award | 65,084 | - |
| 2026-02-19 | WAJNER MATTHEW F | Chief Financial Officer | Stock Award | 16,210 | - |
| 2026-02-19 | ADAMS STEVEN A | Officer | Stock Award | 3,351 | - |
| 2026-02-19 | GILYARD REGINALD HAROLD | Director | Stock Award | 2,418 | - |
| 2026-02-19 | WAHL DEBORAH | Director | Stock Award | 2,418 | - |
| 2026-02-19 | CORNEHL LISA W | Officer | Stock Award | 12,076 | - |
| 2026-02-19 | SPENCE MARSHA A. | Director | Stock Award | 2,418 | - |
| 2026-02-17 | KENNEDY PARKER STEVEN | Director | Purchase | 59,841 | $4,050,101 |
KENNEDY PARKER STEVEN
Director
2026-02-19
2,418 shares
MCKEE MICHAEL DALE
Director
2026-02-19
2,418 shares
DOTI JAMES LOUIS
Director
2026-02-19
2,418 shares
OMAN MARK C
Director
2026-02-19
2,418 shares
GILMORE DENNIS J
Director
2026-02-19
2,418 shares
DAILEY JEFFREY J
Director
2026-02-19
2,418 shares
MCCARTHY MARGARET M
Director
2026-02-19
2,418 shares
SEATON MARK EDWARD
Chief Executive Officer
2026-02-19
65,084 shares
WAJNER MATTHEW F
Chief Financial Officer
2026-02-19
16,210 shares
ADAMS STEVEN A
Officer
2026-02-19
3,351 shares
GILYARD REGINALD HAROLD
Director
2026-02-19
2,418 shares
WAHL DEBORAH
Director
2026-02-19
2,418 shares
CORNEHL LISA W
Officer
2026-02-19
12,076 shares
SPENCE MARSHA A.
Director
2026-02-19
2,418 shares
KENNEDY PARKER STEVEN
Director
2026-02-17
59,841 shares
·
$4,050,101
Insider transactions can signal confidence or concerns about company prospects
SEC Filings
Recent regulatory filings from the SEC EDGAR database
10-Q
8-K
DEF 14A
10-K
8-K
8-K
10-Q
8-K
10-Q
Data sourced from SEC EDGAR. AI summaries generated automatically.
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
STRONG_BUY
4 analysts
Barclays
2026-04-24
Overweight
Overweight
Truist Securities
2026-04-24
Buy
Buy
Barclays
2026-04-06
Equal-Weight
Overweight
Stephens & Co.
2026-03-02
Equal-Weight
Overweight
Truist Securities
2026-02-17
Buy
Buy
Barclays
2026-02-13
Equal-Weight
Equal-Weight
Barclays
2026-01-06
Equal-Weight
Equal-Weight
Keefe, Bruyette & Woods
2025-12-18
Outperform
Outperform
Past News Coverage
Recent headlines mentioning FAF from our newsroom.
Newest → oldest
No matching news yet.