FAF
First American Financial Corporation
FAF's fundamentals are strong: revenue grew 14% and earnings per share grew 52%. At 9.1x earnings, it's trading below its usual 12x. Analysts expect earnings growth.
FAF Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Strong | |
| N/A | |
| N/A |
FAF's profitability is currently strong, and its revenue is stable. Free cash flow and net leverage aren't meaningful measures for financial services companies like FAF.
FAF PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 7.5x | $53.49 | -17% |
| Current | 9.1x | $64.40 | — |
| Forward | 9.8x | $64.40 | — |
| Fair | 11x | $81.06 | +26% |
| Expensive | 33x | $231 | +259% |
Historical ranges are pointers, not guarantees.
FAF's PE is in its cheap range at 9.1x. On analysts' estimates for next year's earnings, today's price would be 9.8x, in its fair range.
FAF Forward outlook
| Metric | Outlook |
|---|---|
| Deteriorating | |
| Growth | |
| Stable | |
| Stable | |
| Limited | |
| High |
Analysts expect FAF's earnings to grow, with its revenue and profitability holding steady.
FAF Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $6.59 | -7.1% |
| Q3 2026 | $7.09 | +52% |
| Q2 2026 | $7.21 | +296% |
| Q1 2026 | $6.50 | +328% |
| Q4 2025 | $6.00 | +376% |
| Q3 2025 | $4.66 | +430% |
| Q2 2025 | $1.82 | -2.2% |
| Q1 2025 | $1.52 | -27% |
| Q4 2024 | $1.26 | -39% |
FAF's earnings per share have fallen from their peak: $7.09 over the past year, against $11.31 in late 2021.
FAF Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $2.1B | +5.3% |
| Q2 2026 | $2.1B | +15% |
| Q1 2026 | $1.8B | +16% |
| Q4 2025 | $2B | +22% |
| Q3 2025 | $2B | +41% |
| Q2 2025 | $1.8B | +14% |
| Q1 2025 | $1.6B | +11% |
| Q4 2024 | $1.7B | +18% |
FAF's revenue has grown year over year for eight quarters in a row: $2.1B last quarter, up 5.3% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 11% | -1.6 points |
| Q2 2026 | 13% | +2.8 points |
| Q1 2026 | 8.8% | +2.7 points |
| Q4 2025 | 14% | +8.1 points |
| Q3 2025 | 12% | +23 points |
| Q2 2025 | 11% | +1.2 points |
| Q1 2025 | 6.1% | +2 points |
| Q4 2024 | 5.9% | +3.2 points |
FAF's operating margin was 11% last quarter, down 1.6 points from the same quarter a year ago.
FAF Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $196.6M | -12% |
| Q2 2026 | $317.4M | +2.6% |
| Q1 2026 | -$32.7M | +$61.8M |
| Q4 2025 | $324.5M | +22% |
| Q3 2025 | $223.1M | +20% |
| Q2 2025 | $309.4M | +47% |
| Q1 2025 | -$94.5M | -637% |
| Q4 2024 | $266.2M | +$366M |
FAF's free cash flow was $806M over the past year, up 14% from the year before. Free cash flow isn't a meaningful measure for financial services companies like FAF.
FAF Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.2% | +200K shares |
| 1 year | +0.1% | +100K shares |
| 3 years | -1% | -1M shares |
| 5 years | -7.3% | -8.2M shares |
| Available history | -9.2% | -10.5M shares |
FAF has 103M diluted shares, about the same as a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | $1.5M |
| Q2 2026 | $20.5M |
| Q1 2026 | $33.5M |
| Q4 2025 | — |
| Q3 2025 | $33.6M |
| Q2 2025 | $60.5M |
| Q1 2025 | $28.2M |
| Q4 2024 | $8.2M |
FAF spent $56M buying back its own shares over the past year, down 57% from the year before.
FAF Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -1.5x | Net Cash |
| Q2 2026 | -2.2x | Net Cash |
| Q1 2026 | -2.2x | Net Cash |
| Q4 2025 | -1.3x | Net Cash |
| Q3 2025 | -3.4x | Net Cash |
| Q2 2025 | -4.4x | Net Cash |
| Q1 2025 | -5.0x | Net Cash |
| Q4 2024 | -4.6x | Net Cash |
FAF has more cash than debt. Net leverage isn't a meaningful measure for financial services companies like FAF.
FAF Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 44.5 | Neutral |
| Stochastic | 29.9 | Neutral |
FAF's weekly RSI is 44 (neutral) and its Stochastic is 30 (neutral).
FAF PE vs Financial Services Sector
| Metric | FAF | Sector median | Relative |
|---|---|---|---|
| PE | 9.1x | 13x | 30% below |
| PE % | 32 | 63 | 31 pts below |
FAF is trading at 9.1x earnings, a 30% discount to the Financial Services sector's median of 13x.
FAF Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $64.4 | 0.1% above |
| 20 week MA | $69.3 | 7% below |
| 50 week MA | $66.8 | 3.5% below |
| 100 week MA | $64.5 | 0.1% below |
| 200 week MA | $61.8 | 4.3% above |
FAF's trend is mixed: it's above two of its five weekly moving averages, and 4.3% above its 200-week average.
FAF Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $57.8 | $51.9 | -10% |
| 2021 | $51.9 | $76.4 | +47% |
| 2022 | $76.4 | $52.4 | -31% |
| 2023 | $52.4 | $64.4 | +23% |
| 2024 | $64.4 | $62.5 | -2.9% |
| 2025 | $62.5 | $61.9 | -1% |
| 2026 YTD | $61.9 | $64.4 | +4% |
FAF has finished lower in four of the last six years. It's up 4% so far in 2026.