Stock AnalizFirst American Financial Corp FAF
Specialty Insurers · data as of November 13, 2026
First American Financial Corp (FAF) is a financial company listed in the US with a market value of about $6.6B. In the twelve months to September 30, 2026 it had revenue of $8.1B and net income of $732M, a net margin of 9.1%.
Its overall Stock Analiz score is 3.6 out of 5 (good). The strongest part is shareholder returns (5/5); the weakest is track record (1/5).
Key numbers: a P/E of 9.1, a price to free cash flow of 8.2, 5-year revenue growth of 1% a year, a 5-year average ROIC of 9%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 11% above the current price.
Score: 3.6 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- Revenue growth above 10% last year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
Checks not passed
- PEG below 1.5
- 3-year revenue growth above 10% a year
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
- 5-year average ROIC above 12%
- ROE above 15%
- Liabilities below 60% of assets
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $8.1B | $7.5B | $6.1B | $6.0B | $7.6B | $9.2B | $7.1B | $6.2B | $5.7B | $5.8B | $5.6B |
| Net income | $732M | $622M | $131M | $217M | $263M | $1.2B | $696M | $707M | $474M | $423M | $343M |
| Free cash flow | $806M | $762M | $679M | $91M | $518M | $1.1B | $971M | $806M | $675M | $498M | $357M |
| EPS (diluted) | $7.10 | $6.00 | $1.26 | $2.07 | $2.45 | $11.14 | $6.16 | $6.22 | $4.19 | $3.76 | $3.09 |
| Net margin | 9.1% | 8.3% | 2.1% | 3.6% | 3.5% | 13.5% | 9.8% | 11.4% | 8.3% | 7.3% | 6.2% |
| ROIC | — | 10.9% | 2.6% | 4.2% | 5.4% | 20.7% | 13.5% | 15.0% | 12.7% | 12.1% | 11.4% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 5 analysts is $79.00, 22% above the current price; targets range from $75.00 to $83.00; the consensus rating is “none”; expected EPS is $6.85 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is First American Financial’s P/E ratio?
About 9.1, based on the last twelve months of diluted earnings per share (forward P/E about 10.2).
Is First American Financial stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 11% above the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does First American Financial pay a dividend?
Yes. The dividend yield is about 3.64%, and it has paid dividends for 10 years in our data.
Is First American Financial a good stock to buy?
We do not give buy or sell advice. First American Financial scores 3.6 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.