First American Financial Corporation (FAF)Growth Analysis: Profit Driven by Strength

First American Financial Corporation (FAF) is owned by a number of high-value investors. Its largest direct holder is Dennis J. Gilmore Chief Executive Officer and Director with 593,089 shares. The second-largest direct holder is Kenneth D. Degiorgio Executive Vice President, with 404,286 shares of the company’s stock. In third place with 161,185 shares of FAF is Parker S. Kennedy Chairman of the Board.

Now turning to institutional ownership of First American Financial Corporation (FAF), The Vanguard Group, Inc. is the top holder with 11.36 million shares. The next largest fund holder of this company’s stock is BlackRock Fund Advisors with 9.86 million shares. In the third-place spot with 6.84 million shares is Fidelity Management & Research Co..

This company’s stock price was $57.31 at the previous market close, with its latest volume reaching 1,179,886. Compare that to its average daily volume of 678.19K. Given the fact that this stock has 114.87M shares outstanding, its current market value is sitting at $6.58B. This publicly-traded stock’s 60-month Beta is 0.90. Its Price to Sales ratio is 1.14, its Price to Cash Flow ratio is 4.66, and its Price to Book ratio is 1.59.

FAF stock has achieved a 5-day range of $57.04 to $60.48, with a total performance of -3.70% during that period. Meanwhile, in the past month of trading, this stock has traded in the range of $55.93 to $60.48, generating a +0.30% change during the period. In the past three months, this stock’s price has changed by +8.44%, trading in the range of $52.57 to $60.48.

In the past 5 days, shares of FAF have made a new high 1 time. In the last month, it has made a new high 11 times, and in the past 3 months, it has made a new high 16 times.

Now let’s turn to this public company’s earnings. For the quarter ending 6/29/2019, the earnings per share (EPS) was reported at 1.58. This is a 0.2 difference compared to the consensus estimate of 1.38, amounting to an earnings surprise of 14.50%. In the previous quarter, which ended in 6/29/2019, the consensus estimate was 0.68, making for an earnings surprise of 8.80%. For the quarter ending 12/30/2018, EPS was reported at 1.27, generating a 11.40% earnings surprise.

The Net Income for the most recent full fiscal year, which ended in 12-2018, was $474.5 million. This is compared to the prior year, where Net Income was $423.05 million. Meanwhile, this company’s Operating Cash Flow was $793.16 million for the year, compared to $632.13 million in 2017. Capital Expenditures for the year were reportedly -$118.17 million, compared to -$134.21 million, and Free Cash flow was $675.0 million compared to the prior year’s $497.93 million.

First American Financial Corporation (FAF) stock currently has a Financial Strength score of 5/10. This is due to a combination of factors, including a Cash to Debt ratio of 1.37, an Equity to Asset ratio of 0.36, a Debt to Equity ratio of 0.26 and a Debt to EBITDA of 2.29. The Beneish M-Score is -2.9.

This publicly-traded company’s Profitability and Growth score is 3/10, thanks to a combination of things: a Net Margin of 9.36, a ROE of 14.23.

Shifting focus now to Valuation and Return for FAF, this company’s Price to Tangible Book is 2.29 and its Price to Median PS Value is 1.55. This organization’s Price to Graham Number is 1.11.

Certain ratios provide helpful insights into how a stock is performing. This stock’s PB Ratio is 1.59, its PS Ratio is 1.12, its Forward PE Ratio is 11.92, and its PE Ratio without NRI is 12.01. Similarly, its Shiller PE Ratio is 20.8, its Price to Owner Earnings is 30.29, its Price to Free Cash Flow is 9.01 and its Price to Operating Cash Flow is 7.73.