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

$72.33+1.22(0.02%)Market open

Market Cap

$7.14B

P/E

9.6x

P/S

0.9x

P/B

1.3x

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

ExcellentMetricSide Score: 84/100

Strongest: Growth (25/25); weakest: Balance Sheet & Red Flags (14/25).

Profitability21/25

Growth25/25

Balance Sheet & Red Flags14/25

Cash & Earnings Quality24/25

Strengths

Growing revenueRising free cash flowRising earningsCash-backed earnings

Valuation vs. 5-year range

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

P/E · 9.6x5y range 5.9x – 73.7x

Currently below its 20-quarter median.

P/S · 0.9x5y range 0.6x – 1.2x

Currently near its 20-quarter median.

P/B · 1.3x5y range 1.1x – 1.5x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $7.14B

Metrics at a Glance

as of June 2026

Revenue & Profit

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

TTM Revenue: $7.98B
Q. Revenue: $2.12B
TTM EBITDA: $980.10M
TTM Op. Income: $980.10M
Q. Op. Income: $283.90M
TTM Net Income: $745.10M
Q. Net Income: $218.50M
EPS: $2.13
Shares Out.: $102.60M

$7.98B in TTM revenue grew 22.6% YoY, reaching $2.12B last quarter. TTM EBITDA of $980.10M and TTM operating income of $980.10M show growth is flowing through to the bottom line. TTM net income of $745.10M 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: 13.4%
Op. Margin: 13.4%
Net Margin: 10.3%

Op. margin of 13.4% is up 2.8% YoY — cost efficiency is improving. Net margin at 10.3% Over the past year, operating margin is up 26% — an improving trend.

Price Ratios

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

P/E Ratio: 9.6x
P/S Ratio: 0.9x
P/B Ratio: 1.3x

At 9.6x P/E, the stock trades below typical market levels. P/S of 0.9x and P/B of 1.3x provide additional context. P/E sits below typical market levels while revenue is growing. Over the past year, P/E is down 72% — a weakening trend.

Assets & Liabilities

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

Total Assets: $18.94B
Cash: $2.62B
Long-Term Debt: N/A
Book Value: $5.62B
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: $356.60M
TTM Free Cash Flow: $1.00B
FCF Margin: 12.6%
FCF / Net Income: 1.3

TTM FCF of $1.00B on $356.60M in operating cash flow. The FCF / Net Income ratio of 1.3x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 15% — a weakening trend.