# First American Corporation (New) (FAF) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Financial Services / Insurance. Price $72.75, market value $7.4 billion.

## Valuation
- **P/E (trailing): 10.1×** (5-yr avg 22.1×, 3-yr avg 28.6×). First American Corporation (New) trades at 10.1× trailing earnings, well below its own five-year average of 22.1×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 9.8×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.03**. A PEG of 0.03 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.3×**. The shares trade at 1.3× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 11.2%** (5-yr avg 9.9%). Free cash flow equals 11.2% of the market value, in line with its five-year average of 9.9%. Above 5% is generally attractive.
- **Earnings yield: 9.9%**. The inverse of the P/E: 9.9% of the price is earned each year.

## Profitability
- **Net margin: 8.3%**. 8.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 11.3%**. 11.3% on shareholders' equity is solid.
- **Return on assets: 4.6%**. Each dollar of assets produces 4.6% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 21.6%** (3-yr -0.7%/yr, 5-yr 1.0%/yr). Revenue grew 21.6% over the last year, against 1.0% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 376.2%** (3-yr 34.8%/yr, 5-yr -0.5%/yr). Earnings per share rose 376.2%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 13.8%/yr**. Free cash flow has compounded at 13.8% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.02%** ($2.20 per share, trailing). First American Corporation (New) yields 3.02%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 36%** (27% of free cash flow). 36% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 16**. 16 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 4.1%/yr** (1-yr 1.9%). The dividend has grown 4.1% a year over five years.

## Price and momentum
- **Total return (1 yr): 13.5%** (YTD 20.4%, 3-mo 9.4%). The shares are up 13.5% over twelve months including dividends.
- **From 52-week high: -8.9%** (29.4% above the low). Trading 9% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 0.40** (volatility 29%). Beta of 0.40 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=FAF · Page: https://foliofundamentals.com/stocks/faf

Not investment advice.