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First American Financial Corporation
NYSE: FAF Financials Insurance 🔎 Screen
🏹 Trader: 🎯 Near 52W High | BRS 71 Forming View all →
$7.4B
Market Cap
10.2
P/E
0.92
PEG
9.6%
ROCE
12.0%
ROE
0.48
D/E
13.2%
OPM
-7.6%
% from 52W High
66
α RS
🔍 FAF is showing a high-conviction setup because it matches 3 of 39 tracked screener presets, RS Rating is 66, and an ECS of 74.6 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating ECS
Sources
Conviction 3/39 · RS Rating 66 · ECS 74.6
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🌏 Global Investor Returns
Currency-adjusted total returns for FAF including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

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.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding FAF
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 102.7K $6.2M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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📊 MIXED First American Financial Q1 2026 adj. EPS $1.33 (+58% YoY); commercial revenue record $271M.
Revenue & Profitability
Adjusted earnings per share was $1.33, up 58% from the prior year. GAAP earnings were $1.21 per diluted share. Title segment adjusted revenue was $1.7 billion, up 17% compared with Q1 2025. Commercial revenue grew 48% to $271 million. Investment income was $154 million, up 12% year-over-year. Pre-tax margin in the title segment was 9.6% (10.4% adjusted). Home warranty segment revenue was $110 million, up 2%, with a pre-tax margin of 23.5% (23.8% adjusted).
Outlook
Management remains more cautious than consensus on the residential purchase market, with purchase orders down 3% in early April. Commercial activity remains strong, driven by data centers and energy, and the company believes 2026 will be a record year for commercial business. Refinance activity, while up 76% in Q1, has softened as mortgage rates rose again. The home warranty segment expects more normal claims patterns in Q2 and Q3.
Growth Drivers
Key growth drivers include commercial real estate (record Q1 revenue, 48% YoY growth, with strength across nine of 11 asset classes, especially data centers up 76% and energy up 250%). First American Trust bank deposits grew 19% to $6.8 billion, driven by non-captive sources like subservicing (ServiceMac), 1031 exchange, and agent banking (284 agents, up 26% YoY). AI-driven efficiency improvements are also a growth lever, expanding capacity and revenue opportunities.
Balance Sheet & CapEx
Not discussed in this earnings call.
Margins
Title segment pre-tax margin was 9.6% (10.4% adjusted), improved 250 basis points year-over-year. The success ratio was 58%, in line with the 60% target. Management expects incremental margin gains over time as new AI platforms (Sequoia, Endpoint) are rolled out nationally and as operating leverage improves when market volumes recover. Home warranty pre-tax margin was 23.5% (23.8% adjusted), though management notes typical margins are mid-teens, with Q2 and Q3 likely seeing higher claims.
Key Risks
Risks flagged include: continued weakness in the residential purchase market (orders down 3% in April); the potential for mortgage rates to rise further, reducing refinance activity; and the possibility that new AI-driven entrants could disrupt the industry. Additionally, the company's home warranty business faces normal claims seasonality and weather-related risks. The regulatory environment is currently benign at both state and national levels.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-23
Adjusted EPS rose 36% year-over-year, driven by record commercial revenue and strong deposit growth. AI initiatives improved operational efficiency, while free cash flow and capital returns strengthened. Commercial pipeline remains robust, but residential markets are flat.
Q1 2026 Q1 2026 2026-04-23
Adjusted EPS rose 58% year-over-year, driven by record commercial revenue and strong investment income, while residential purchase revenue declined. AI initiatives are boosting efficiency, and capital is being allocated to buybacks and strategic investments.
Q4 2025 Q4 2025 2026-02-12
Q4 and FY25 saw strong commercial growth (+35% revenue), record margins, and robust tech progress, while residential remained weak. 2026 outlook is positive for commercial and refinance, with continued investment in AI and capital returns to shareholders.
Q3 2025 Q3 2025 2025-10-23
Q3 saw strong commercial growth and record ARPO, offsetting residential softness. AI-driven platforms Endpoint and Sequoia are on track, expected to boost productivity and efficiency. Dividend was raised, share repurchases paused, and M&A opportunities are increasing.
Q2 2025 Q2 2025 2025-07-24
Adjusted EPS reached $1.53, driven by record commercial revenue and strong investment income, while residential purchase revenue declined. Margins improved year-over-year, and a new $300 million share repurchase was authorized.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Information Sources:
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