First American Corporation (New

Valuation Analysis

About the Company

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

First American Corporation (New Stock at a Glance

First American Corporation (New (FAF) is currently trading at $65.74 with a market capitalization of $6.7B. The trailing P/E ratio stands at 10.11x, with a forward P/E of 9.05x. The 52-week range spans from $53.09 to $71.47; the current price is 8% below the yearly high. Year-over-year revenue growth stands at +16.2%. The net profit margin stands at 8.73%.

💰 Dividend

First American Corporation (New pays an annual dividend of $2.20 per share, representing a yield of 3.35%. The payout ratio stands at 33.69%.

📊 Analyst Rating

5 analysts rate First American Corporation (New (FAF) on consensus: Strong Buy. The average price target is $86.20, implying +31.12% from the current price. Analyst price targets range from $80.00 to $95.00.

First American Corporation (New: The Investment Case in Detail

First American Corporation (New (FAF) operates in the Financial Services — specifically Insurance - Specialty — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 16.2% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Earnings growth of 70.4% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. With a gross margin near 63.87%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns.

Valuation in Context

The EV/EBITDA multiple of 5.52x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 9.05x is meaningfully below the trailing 10.11x — analysts expect earnings to step up; the next earnings release is the test.
• The dividend yield near 3.35% combined with a payout ratio of 33.69% leaves room for further hikes — a track record of consecutive raises is a strong income signal.
• The analyst consensus price target implies 31.12% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Risk Profile

The data points to market-like volatility, elevated short interest (5.63%).

Trading Data

💵 Dividend Info

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