First American Stock Buy Hold or Sell Recommendation
| FAF Stock | USD 70.44 0.29 0.41% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding First American is 'Strong Hold'. Macroaxis provides First American buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding FAF positions.
Check out First American Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in First Stock please use our How to Invest in First American guide. Note, we conduct extensive research on individual companies such as First and provide practical buy, sell, or hold advice based on investors' constraints. First American. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
First |
Execute First American Buy or Sell Advice
The First recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on First American. Macroaxis does not own or have any residual interests in First American or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute First American's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
First American Trading Alerts and Improvement Suggestions
| First American has 1.39 B in debt with debt to equity (D/E) ratio of 0.5, which is OK given its current industry classification. First American has a current ratio of 0.38, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for First to invest in growth at high rates of return. | |
| Over 90.0% of First American shares are owned by institutional investors | |
| Latest headline from gurufocus.com: First American Financial Corporation to Participate in the KBW Virtual Title Insurance Day ... |
First American Returns Distribution Density
The distribution of First American's historical returns is an attempt to chart the uncertainty of First American's future price movements. The chart of the probability distribution of First American daily returns describes the distribution of returns around its average expected value. We use First American price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of First American returns is essential to provide solid investment advice for First American.
| Mean Return | 0.18 | Value At Risk | -1.71 | Potential Upside | 2.05 | Standard Deviation | 1.19 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of First American historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
First Stock Institutional Investors
| Shares | Geode Capital Management, Llc | 2024-09-30 | 1.7 M | Vaughan Nelson Scarbrgh & Mccullough Lp | 2024-09-30 | 1.5 M | Wellington Management Company Llp | 2024-09-30 | 1.4 M | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 1.2 M | Norges Bank | 2024-06-30 | 1.1 M | Bank Of New York Mellon Corp | 2024-09-30 | 1.1 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1.1 M | Deprince Race & Zollo Inc | 2024-09-30 | 1.1 M | Reinhart Mahoney Capital Management Inc | 2024-09-30 | 1 M | Vanguard Group Inc | 2024-09-30 | 10.5 M | Blackrock Inc | 2024-06-30 | 9.2 M |
First American Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 18.8M | (210.5M) | (47M) | (4M) | 2.4B | 2.5B | |
| Free Cash Flow | 806.1M | 970.6M | 1.1B | 520M | 90.9M | 86.4M | |
| Depreciation | 129.0M | 149.0M | 158M | 167M | 188.5M | 122.5M | |
| Other Non Cash Items | 23.5M | 69.0M | 70M | 622M | 171.8M | 163.5M | |
| Dividends Paid | 188.4M | 198.7M | 213M | 217M | (216.6M) | (205.8M) | |
| Capital Expenditures | 107.0M | 114.1M | 161M | 260M | 263.4M | 135.9M | |
| Net Income | 709.8M | 700.5M | 1.2B | 265M | 216.8M | 358.5M | |
| End Period Cash Flow | 1.5B | 1.3B | 1.2B | 1.2B | 3.6B | 3.8B | |
| Investments | 998.4M | 1.6B | (3.2B) | (64M) | 44.9M | 47.1M | |
| Net Borrowings | (5.6M) | 278.1M | 636M | (7M) | (8.1M) | (7.6M) | |
| Change To Netincome | (28.3M) | (37.6M) | (414M) | 618M | 556.2M | 584.0M | |
| Change Receivables | (27.2M) | (52.9M) | (48M) | 83M | 95.5M | 100.2M |
First American Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to First American or Insurance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that First American's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a First stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.13 | |
β | Beta against Dow Jones | 0.35 | |
σ | Overall volatility | 1.16 | |
Ir | Information ratio | 0.05 |
First American Volatility Alert
First American has relatively low volatility with skewness of -0.09 and kurtosis of 1.04. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure First American's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact First American's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.First American Fundamentals Vs Peers
Comparing First American's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze First American's direct or indirect competition across all of the common fundamentals between First American and the related equities. This way, we can detect undervalued stocks with similar characteristics as First American or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of First American's fundamental indicators could also be used in its relative valuation, which is a method of valuing First American by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare First American to competition |
| Fundamentals | First American | Peer Average |
| Return On Equity | 0.0195 | -0.31 |
| Return On Asset | 0.0097 | -0.14 |
| Profit Margin | 0.02 % | (1.27) % |
| Operating Margin | (0.08) % | (5.51) % |
| Current Valuation | 7.21 B | 16.62 B |
| Shares Outstanding | 103 M | 571.82 M |
| Shares Owned By Insiders | 3.73 % | 10.09 % |
| Shares Owned By Institutions | 89.53 % | 39.21 % |
| Number Of Shares Shorted | 1.3 M | 4.71 M |
| Price To Earning | 12.81 X | 28.72 X |
| Price To Book | 1.42 X | 9.51 X |
| Price To Sales | 1.24 X | 11.42 X |
| Revenue | 938.5 M | 9.43 B |
| Gross Profit | 4.29 B | 27.38 B |
| EBITDA | 595.4 M | 3.9 B |
| Net Income | 216.8 M | 570.98 M |
| Cash And Equivalents | 1.22 B | 2.7 B |
| Cash Per Share | 23.39 X | 5.01 X |
| Total Debt | 1.39 B | 5.32 B |
| Debt To Equity | 0.50 % | 48.70 % |
| Current Ratio | 0.39 X | 2.16 X |
| Book Value Per Share | 49.44 X | 1.93 K |
| Cash Flow From Operations | 354.3 M | 971.22 M |
| Short Ratio | 1.91 X | 4.00 X |
| Earnings Per Share | 0.88 X | 3.12 X |
| Price To Earnings To Growth | 2.04 X | 4.89 X |
| Target Price | 76.4 | |
| Number Of Employees | 19.21 K | 18.84 K |
| Beta | 1.31 | -0.15 |
| Market Capitalization | 7.26 B | 19.03 B |
| Total Asset | 16.8 B | 29.47 B |
| Retained Earnings | 3.71 B | 9.33 B |
| Annual Yield | 0.03 % |
Note: Disposition of 2337 shares by Steven Adams of First American at 63.7619 subject to Rule 16b-3 [view details]
First American Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as First . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About First American Buy or Sell Advice
When is the right time to buy or sell First American? Buying financial instruments such as First Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having First American in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Alternative Currency ETFs theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Alternative Currency ETFs Theme or any other thematic opportunities.
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Check out First American Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in First Stock please use our How to Invest in First American guide.You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of First American. If investors know First will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about First American listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.16) | Dividend Share 2.13 | Earnings Share 0.88 | Revenue Per Share 56.505 | Quarterly Revenue Growth (0.05) |
The market value of First American is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First American's value that differs from its market value or its book value, called intrinsic value, which is First American's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because First American's market value can be influenced by many factors that don't directly affect First American's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between First American's value and its price as these two are different measures arrived at by different means. Investors typically determine if First American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First American's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.