FAF

Company Overview — What Does First American Financial Corp Do?

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Specialty Insurance segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services. This segment also provides closing and/or escrow services; products, services, and solutions to mitigate risk or otherwise facilitate real estate transactions; and appraisals and other valuation-related products and services, lien release and document custodial services, warehouse lending services, default-related products and services, mortgage subservicing, and related products and services, 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 49 states and in the District of Columbia, as well as in Canada, the United Kingdom, Australia, South Korea, and internationally. The Specialty Insurance segment provides property and casualty insurance comprising coverage to residential homeowners and renters for liability losses and typical hazards, such as fire, theft, vandalism, and other types of property damage. It also offers residential service contracts that cover residential systems, such as heating and air conditioning systems, and appliances against failures that occur as the result of normal usage during the coverage period. First American Financial Corporation was founded in 1889 and is headquartered in Santa Ana, California. First American Financial Corp (FAF) is classified as a mid-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO Kenneth D. DeGiorgio and employs approximately 21,200 people, headquartered in Santa Ana, California. With a market capitalization of $6.1B, FAF is one of the notable companies in the Financials sector.

First American Financial Corp (FAF) Stock Rating — Hold (April 2026)

As of April 2026, First American Financial Corp receives a Hold rating with a composite score of 52.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FAF ranks #1,763 out of 4,446 stocks in our coverage universe. Within the Financials sector, First American Financial Corp ranks #522 of 891 stocks, placing it in the lower half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

FAF Stock Price and 52-Week Range

First American Financial Corp (FAF) currently trades at $63.45. The stock lost $0.55 (0.9%) in the most recent trading session. The 52-week high for FAF is $70.40, which means the stock is currently trading -9.9% from its annual peak. The 52-week low is $53.09, putting the stock 19.5% above its annual trough. Recent trading volume was 217K shares, suggesting relatively thin trading activity.

Is FAF Overvalued or Undervalued? — Valuation Analysis

First American Financial Corp (FAF) carries a value factor score of 77/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 20.18x, compared to the Financials sector average of 14.88x — a premium of 36%. The price-to-book ratio stands at 1.13x, versus the sector average of 1.22x. The price-to-sales ratio is 0.91x, compared to 0.90x for the average Financials stock. On an enterprise value basis, FAF trades at 10.24x EV/EBITDA, versus 3.26x for the sector.

Based on these multiples, First American Financial Corp appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.

First American Financial Corp Profitability — ROE, Margins, and Quality Score

First American Financial Corp (FAF) earns a quality factor score of 65/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 5.6%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.9% versus the sector average of 1.2%.

On a margin basis, First American Financial Corp reports gross margins of 0.0%. The operating margin is 4.7% (sector: 21.8%). Net profit margin stands at 3.7%, versus 17.7% for the average Financials stock. Revenue growth is running at 25.5% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.

FAF Debt, Balance Sheet, and Financial Health

First American Financial Corp has a debt-to-equity ratio of 194.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.52x, suggesting adequate working capital coverage. Total debt on the balance sheet is $2.62B. Cash and equivalents stand at $2.91B.

FAF has a beta of 0.63, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for First American Financial Corp is 74/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.

First American Financial Corp Revenue and Earnings History — Quarterly Trend

In TTM 2026, First American Financial Corp reported revenue of $6.81B and earnings per share (EPS) of $6.02. Net income for the quarter was $308M. Gross margin was 0.0%. Operating income came in at $394M.

In FY 2025, First American Financial Corp reported revenue of $7.45B and earnings per share (EPS) of $6.02. Net income for the quarter was $625M. Revenue grew 24.6% year-over-year compared to FY 2024. Operating income came in at $826M.

In Q3 2025, First American Financial Corp reported revenue of $1.98B and earnings per share (EPS) of $1.84. Net income for the quarter was $190M. Revenue grew 40.7% year-over-year compared to Q3 2024. Operating income came in at $247M.

In Q2 2025, First American Financial Corp reported revenue of $1.84B and earnings per share (EPS) of $1.41. Net income for the quarter was $147M. Revenue grew 16.8% year-over-year compared to Q2 2024. Operating income came in at $195M.

Over the past 8 quarters, First American Financial Corp has demonstrated a growth trajectory, with revenue expanding from $1.58B to $6.81B. Investors analyzing FAF stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

FAF Dividend Yield and Income Analysis

First American Financial Corp (FAF) currently pays a dividend yield of 3.4%. At this yield, a $10,000 investment in FAF stock would generate approximately $$338.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning FAF offers above-average income for its sector.

FAF Momentum and Technical Analysis Profile

First American Financial Corp (FAF) has a momentum factor score of 40/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 14/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

FAF vs Competitors — Financials Sector Ranking and Peer Comparison

Within the Financials sector, First American Financial Corp (FAF) ranks #522 out of 891 stocks based on the Blank Capital composite score. This places FAF in the lower half of all Financials stocks in our coverage universe. Key competitors and sector peers include WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) with a score of 62.9/100, OPPENHEIMER HOLDINGS INC (OPY) with a score of 62.6/100, Enact Holdings, Inc. (ACT) with a score of 61.6/100, International General Insurance Holdings Ltd. (IGIC) with a score of 61.3/100, and PARKE BANCORP, INC. (PKBK) with a score of 60.4/100.

Comparing FAF against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FAF vs S&P 500 (SPY) comparison to assess how First American Financial Corp stacks up against the broader market across all factor dimensions.

FAF Next Earnings Date

No upcoming earnings date has been announced for First American Financial Corp (FAF) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy FAF? — Investment Thesis Summary

First American Financial Corp presents a balanced picture with arguments on both sides. The quality score of 65/100 indicates above-average profitability and business fundamentals. The value score of 77/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 74/100) reduces downside risk.

In summary, First American Financial Corp (FAF) earns a Hold rating with a composite score of 52.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FAF stock.

Related Resources for FAF Investors

Explore more research and tools: FAF vs S&P 500 comparison, top Financials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare FAF head-to-head with peers: FAF vs WTM, FAF vs OPY, FAF vs ACT.