First American Corporation (New (FAF) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

First American Corporation (New

NYSE•Financial Services•Insurance - Specialty

$64.97-1.19(-0.02%)Pre-market

Market Cap

$6.67B

P/E

9.1x

P/S

0.8x

P/B

1.2x

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services internationally. This segment also provides closing and/or escrow services; products, services, and solutions to mitigate risk or otherwise facilitate real estate transactions; appraisals and other valuation-related products and services; lien release, document custodial, and default-related products and services; document generation services; warehouse lending services; and subservices mortgage loans; as well as banking, trust, and wealth management services. In addition, it accommodates tax-deferred exchanges of real estate; and maintains, manages, and provides access to title plant data and records. This segment offers its products through a network of direct operations and agents in various states and in the District of Columbia, as well as in Canada, the United Kingdom, Australia, New Zealand, South Korea, and internationally. The Home Warranty segment provides home warranty products, including residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. This segment operates in various states and the District of Columbia. First American Financial Corporation was founded in 1889 and is based in Santa Ana, California.

How this company scores

GoodMetricSide Score: 75/100

Strongest: Growth (23/25); weakest: Balance Sheet & Red Flags (12/25).

Profitability18/25

Growth23/25

Balance Sheet & Red Flags12/25

Cash & Earnings Quality22/25

Strengths

Rising earningsCash-backed earningsProfit converts from growthConsistent growth

No red flags in the last 8 quarters.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 9.1x5y range 5.6x – 69.8x

Currently below its 20-quarter median.

P/S · 0.8x5y range 0.7x – 1.1x

Currently near its 20-quarter median.

P/B · 1.2x5y range 1.1x – 1.5x

Currently near its 20-quarter median.

Price & Volume

Market Cap $6.67B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $8.09B
Q. Revenue: $2.08B
TTM EBITDA: $960.70M
TTM Op. Income: $960.70M
Q. Op. Income: $227.60M
TTM Net Income: $732.50M
Q. Net Income: $177.00M
EPS: $1.72
Shares Out.: $102.70M

$8.09B in TTM revenue grew 14.1% YoY, reaching $2.08B last quarter. TTM EBITDA of $960.70M and TTM operating income of $960.70M show growth is flowing through to the bottom line. TTM net income of $732.50M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 10.9%
Op. Margin: 10.9%
Net Margin: 8.5%

Op. margin of 10.9% is down 1.6% YoY — costs are rising relative to revenue. Net margin at 8.5% Over the past year, operating margin is down 13% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 9.1x
P/S Ratio: 0.8x
P/B Ratio: 1.2x

At 9.1x P/E, the stock trades below typical market levels. P/S of 0.8x and P/B of 1.2x provide additional context. P/E sits below typical market levels while revenue is growing. Over the past year, P/E is down 33% — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $17.98B
Cash: $1.73B
Long-Term Debt: N/A
Book Value: $5.39B
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $238.00M
TTM Free Cash Flow: $969.50M
FCF Margin: 12.0%
FCF / Net Income: 1.3

TTM FCF of $969.50M on $238.00M in operating cash flow. The FCF / Net Income ratio of 1.3x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.