Stocks · Financial Services · Insurance - Specialty
First American Financial Corporation FAF
$62.49 +1.59% Close, Oct 2, 2026 · NYSE · Market cap $6.38B
High qualityInexpensive vs sector
Next earnings report: Oct 21, 2026
Scroll or pinch to zoom, drag to move. Daily prices adjusted for splits. Markers: E = earnings (green beat, red miss), S = split, D = dividend.
Three things to know
- Diluted EPS over the last four quarters was $7.21, up 298.3% year over year.
- Operating margin widened to 12.8% from 3.8% a year earlier.
- Revenue over the last four quarters was $4.18B, down 35.7% from a year earlier, slowing from -4.2% a quarter earlier.
PromtFinance scores
Each score is a percentile within the Financial Services sector (0–100). Under each score: how the stock ranks in its sector on every component. As of Oct 5, 2026.
How fast revenue, earnings and cash flow are growing.
- Revenue growth (TTM, YoY)Bottom 3%
- EPS growth (TTM, YoY)Top 3%
- FCF growth (TTM, YoY)Top 44%
- Revenue growth, 3-year CAGRBottom 8%
- Revenue growth accelerationBottom 4%
Returns on capital, margins, earnings quality and balance-sheet strength.
- Return on invested capitalTop 43%
- Gross marginTop 22%
- Operating marginBottom 27%
- Cash conversion (OCF / net income)Top 37%
- Accruals (lower is better)Top 30%
- Net debt / EBITDA (lower is better)Top 16%
- Interest coverTop 25%
How cheap the shares are relative to earnings, cash flow and their own history.
- Earnings yieldTop 11%
- Free-cash-flow yieldTop 23%
- EBITDA / enterprise valueTop 12%
- Sales / enterprise valueTop 15%
- P/E vs own 5-year history (lower is better)Top 22%
Strength and persistence of the price trend, including versus the S&P 500.
- 12-month return excluding last monthTop 42%
- 6-month returnTop 45%
- 1-year return vs S&P 500Bottom 30%
- Distance from 52-week highBottom 22%
- Trend checklist (0–4)Bottom 27%
Earnings surprises and analyst sentiment (estimate-revision history is being collected).
- Average EPS surprise, last 4 quartersTop 20%
- Consecutive EPS beatsBottom 43%
- Share of analysts rating BuyTop 18%
- Upside to consensus price targetTop 18%
Low volatility, shallow drawdowns, low market sensitivity and modest leverage.
- Volatility, 60 days (lower is better)Bottom 21%
- Maximum drawdown, 3 yearsTop 33%
- Beta vs S&P 500 (lower is better)Bottom 47%
- Net debt / EBITDA (lower is better)Top 16%
What changed
Latest four quarters versus the same period a year earlier (growth: versus one quarter earlier).
| Measure | Before | Now | |
|---|---|---|---|
| Revenue growth (YoY) | -4.2% | -35.7% | ↓ |
| EPS growth (YoY) | 330.5% | 298.3% | ↓ |
| Gross margin | 61.2% | 76.8% | ↑ |
| Operating margin | 3.8% | 12.8% | ↑ |
| FCF margin | 10.2% | 19.9% | ↑ |
Fundamental momentum
| Measure | Now (TTM) | Year / quarter before | Sector rank | |
|---|---|---|---|---|
| Revenue growth (TTM, YoY) | -35.7% | -4.2% | ↓ | Bottom 3% |
| EPS growth (TTM, YoY) | 298.3% | 330.5% | ↓ | Top 3% |
| Gross margin | 76.8% | 61.2% | ↑ | Top 22% |
| Operating margin | 12.8% | 3.8% | ↑ | Bottom 27% |
| Net margin | 17.8% | 2.9% | ↑ | — |
| Free-cash-flow margin | 19.9% | 10.2% | ↑ | — |
| Return on invested capital | 2.2% | — | Top 43% | |
| Revenue growth, 3-year CAGR | -0.7% | — | Bottom 8% |
Quality of earnings and balance sheet
- Cash conversion (OCF / net income)Above 1× means profits are backed by cash.
- 1.35×
- Accruals (net income − OCF) / assetsLower is better; high accruals can signal weaker earnings quality.
- -1.4%
- Stock-based compensation / revenueA cost to shareholders through dilution.
- 1.5%
- Receivables growth vs revenue growthReceivables growing much faster than sales can be a warning.
- +44.3 pp
- Net debt / EBITDABelow 1× is conservative; above 3× is high leverage.
- -1.04×
- Interest cover (operating income / interest)How many times operating profit covers interest.
- 3.1×
Shareholder returns
- Dividend yield (dividends paid, TTM)
- 3.52%
- Net buyback yield (TTM)
- 1.39%
- Shareholder yield
- 4.90%
- Share count change, 1 year
- -0.9%
- Share count change, 3-year CAGR
- -0.4%
Shareholder yield = dividends + net buybacks over the last four quarters, divided by market cap.
Based on the four quarters through Jun 30, 2026 (filed Jul 23, 2026).
Earnings and expectations
Earnings momentum
- Consecutive EPS beats
- 1
- Beats in the last 8 reports
- 6 of 8
- Average EPS surprise, last 4
- +13.0%
- Average 2-day reaction, last 8
- -0.6%
- Positive 20 days after report
- 6 of 8
Analysts
- Consensus price target
- $83.00
- Target vs current price
- +32.8%
- Analysts with a rating
- 15
- Share rating Buy or Strong Buy
- 73%
- Consensus rating
- Buy
How the stock reacted to recent reports
| Report date | EPS surprise | 2 days | 5 days | 20 days | 60 days |
|---|---|---|---|---|---|
| Jul 22, 2026 | +15.6% | -1.6% | +10.5% | +1.1% | — |
| Apr 22, 2026 | -26.5% | -0.6% | +5.4% | +0.8% | +9.2% |
| Feb 11, 2026 | +43.4% | -3.3% | -0.6% | -4.6% | +4.9% |
| Oct 22, 2025 | +19.7% | +0.5% | +2.9% | +2.9% | +0.3% |
| Jul 23, 2025 | +0.7% | +0.1% | +6.0% | +12.7% | +3.8% |
| Apr 23, 2025 | +10.2% | +2.3% | +5.2% | +1.5% | -3.5% |
| Feb 12, 2025 | -34.6% | -1.3% | +1.9% | -2.3% | -4.7% |
| Oct 23, 2024 | +17.5% | -0.6% | -0.7% | +3.2% | -2.6% |
Returns from the close before each report. Past reactions do not determine future ones.
Earnings history
| Report date | EPS | Estimate | Surprise | Revenue |
|---|---|---|---|---|
| Jul 22, 2026 | $2.08 | $1.80 | +15.6% | $2.12B |
| Apr 22, 2026 | $1.33 | $1.81 | -26.5% | $2.12B |
| Feb 11, 2026 | $2.05 | $1.43 | +43.4% | $2.05B |
| Oct 22, 2025 | $1.70 | $1.42 | +19.7% | $1.98B |
| Jul 23, 2025 | $1.41 | $1.40 | +0.7% | $1.84B |
| Apr 23, 2025 | $0.71 | $0.64 | +10.2% | $1.58B |
| Feb 12, 2025 | $0.70 | $1.07 | -34.6% | $1.69B |
| Oct 23, 2024 | $1.34 | $1.14 | +17.5% | $1.41B |
Valuation in context
| Multiple | Now | 5-year median | 5-year percentile | Sector rank (cheapness) |
|---|---|---|---|---|
| P/E (trailing) | 8.7× | 22.2× | 24th | Top 11% |
| P/E (forward) | 8.9× | — | — | — |
| EV / EBITDA | 6.6× | — | — | Top 12% |
| EV / Sales | 1.32× | — | — | Top 15% |
| Free-cash-flow yield | 13.04% | — | — | Top 23% |
| Earnings yield | 11.54% | — | — | Top 11% |
P/E over the past five years
Range 5.9× – 71.1× since Jun 30, 2021. Each point: price on the filing date divided by trailing-twelve-month EPS known then.
What moved the stock over the past year
- Price return, 1 year
- -2.2%
- Earnings per share growth (TTM)
- +298.3%
- Change in P/E multiple
- -71.4%
Most of the move came from earnings growth.
Technical state
Trend checklist
- ✗ Price above 20-day average
- ✗ Price above 50-day average
- ✗ Price above 200-day average
- ✓ 50-day average above 200-day
- ✗ MACD histogram positive
Trend quality
- Days above the 50-day average
- 0
- Days above the 200-day average
- 0
- 50-day average slope (20 days)
- -0.8%
- 200-day average slope (20 days)
- +0.6%
- Distance from 50-day average
- -13.1%
- Distance from 200-day average
- -7.1%
- RSI (14)
- 30.6
- Relative volume
- 0.89×
Risk and drawdowns
- Volatility, 60 days (annualized)
- 34.3%
- Volatility vs own 5-year history
- 90th percentile · High for this stock
- Beta vs S&P 500 (2 years, weekly)
- 0.73
- Correlation with S&P 500
- 0.40
- Current drawdown from 1-year high
- -21.1%
- Maximum drawdown, 3 years
- -23.4%
Largest declines in the past six years
| From peak | To low | Decline | Length | Recovery |
|---|---|---|---|---|
| Jan 13, 2022 | Oct 20, 2022 | -45.1% | 193 days | Not yet recovered |
| Oct 16, 2020 | Oct 30, 2020 | -18.1% | 10 days | 50 days (Jan 13, 2021) |
| Feb 11, 2021 | Mar 5, 2021 | -11.5% | 15 days | 4 days (Mar 11, 2021) |
Declines of 10% or more from a closing high, measured on daily closes.
Financial statements
- Market cap
- $6.38B
- P/E (TTM)
- 8.7
- EPS, diluted (TTM)
- $7.21
- Revenue (TTM)
- $4.18B
- Dividend yield
- 3.62%
- 52-week range
- $56.20 – $79.87
| FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | |
|---|---|---|---|---|---|
| Revenue | $9.21B | $7.59B | $6.00B | $6.12B | $7.45B |
| Gross profit | $5.64B | $4.28B | $3.71B | $3.76B | $7.12B |
| Operating income | $1.64B | $325.7M | $274.4M | $165.4M | $826.2M |
| Net income | $1.24B | $263.0M | $216.8M | $131.1M | $621.8M |
| EPS (diluted) | $11.14 | $2.45 | $2.07 | $1.26 | $6.00 |
| Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.41B | $1.68B | $1.58B | $1.84B | $1.98B | $2.05B | $143.3M | $12.3M |
| Net income | -$104.0M | $72.4M | $74.2M | $146.1M | $189.6M | $211.9M | $125.1M | $218.5M |
| EPS (diluted) | -$1.00 | $0.69 | $0.71 | $1.41 | $1.83 | $2.05 | $1.21 | $2.12 |
| FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | |
|---|---|---|---|---|---|
| Operating cash flow | $1.22B | $780.0M | $354.3M | $897.5M | $950.8M |
| Capital expenditure | -$160.5M | -$260.0M | -$263.4M | -$218.3M | -$188.3M |
| Free cash flow | $1.06B | $520.0M | $90.9M | $679.2M | $762.5M |
| Dividends paid | -$213.0M | -$217.0M | -$216.6M | -$220.7M | -$223.0M |
| Net share buybacks | -$99.2M | -$440.7M | -$72.7M | -$68.5M | -$115.3M |
Cash outflows are shown as negative numbers.
- Cash and short-term investments
- $2.62B
- Total assets
- $18.94B
- Total liabilities
- $13.32B
- Total debt
- $1.75B
- Net debt
- -$871.6M
- Shareholders’ equity
- $5.60B
As of Jun 30, 2026 (filed Jul 23, 2026).
Dividends
| Ex-date | Amount | Paid |
|---|---|---|
| Sep 28, 2026 | $0.61 | Oct 5, 2026 |
| Jun 8, 2026 | $0.55 | Jun 15, 2026 |
| Mar 9, 2026 | $0.55 | Mar 16, 2026 |
| Dec 8, 2025 | $0.55 | Dec 15, 2025 |
| Sep 22, 2025 | $0.55 | Sep 29, 2025 |
| Jun 9, 2025 | $0.54 | Jun 16, 2025 |
| Mar 10, 2025 | $0.54 | Mar 17, 2025 |
| Dec 9, 2024 | $0.54 | Dec 16, 2024 |
Short interest
- Shares sold short
- 6,041,871
- Days to cover
- 7.70
- Change vs previous report
- +0.7%
FINRA short interest, settlement date Sep 15, 2026.