First American Stock Operating Margin

FAF Stock

USD 65.82 1.91 2.82%

First American fundamentals help investors to digest information that contributes to First American's financial success or failures. It also enables traders to predict the movement of First Stock. The fundamental analysis module provides a way to measure First American's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to First American stock.

		Last Reported	Projected for Next Year
	Operating Profit Margin	0.43	0.45

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First American Company Operating Margin Analysis

First American's Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Operating Margin

Operating Income

Revenue

100

More About Operating Margin | All Equity Analysis

Current First American Operating Margin

(0.08) %

Most of First American's fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, First American is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

First Operating Margin Driver Correlations

Understanding the fundamental principles of building solid financial models for First American is extremely important. It helps to project a fair market value of First Stock properly, considering its historical fundamentals such as Operating Margin. Since First American's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of First American's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of First American's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Current Deferred Revenue	Net Debt	Accounts Payable	Net Receivables	Good Will	Short Term Investments	Total Liab	Total Current Assets	Intangible Assets	Long Term Debt	Property Plant Equipment	Net Tangible Assets	Retained Earnings	Capital Surpluse	Deferred Long Term Liab	Long Term Investments	Short Term Debt	Common Stock	Short Long Term Debt	Long Term Debt Total	Cash And Equivalents	Net Invested Capital	Capital Stock
Total Assets		0.88	0.58	0.2	0.43	0.65	0.88	0.49	0.98	0.7	0.35	0.77	0.57	0.84	0.83	-0.05	0.04	0.91	0.27	0.46	-0.28	0.77	0.68	0.54	-0.62
Total Stockholder Equity	0.88		0.63	0.23	0.58	0.89	0.89	0.26	0.78	0.51	0.4	0.83	0.48	0.98	0.88	0.09	0.05	0.97	0.36	0.54	-0.11	0.88	0.68	0.83	-0.63
Current Deferred Revenue	0.58	0.63		0.04	0.35	0.54	0.34	-0.13	0.53	0.06	0.06	0.26	0.05	0.7	0.44	0.59	0.53	0.55	0.01	-0.03	-0.58	0.24	0.64	0.38	0.03
Net Debt	0.2	0.23	0.04		0.13	0.38	0.12	0.4	0.17	0.33	-0.64	0.5	-0.41	0.19	-0.02	-0.42	0.25	0.29	-0.27	-0.4	-0.25	0.11	-0.28	-0.01	0.03
Accounts Payable	0.43	0.58	0.35	0.13		0.52	0.48	-0.01	0.35	0.15	0.26	0.52	0.25	0.59	0.48	0.18	0.26	0.58	0.02	0.39	-0.18	0.51	0.4	0.56	-0.39
Net Receivables	0.65	0.89	0.54	0.38	0.52		0.76	0.31	0.51	0.49	0.26	0.79	0.33	0.87	0.76	-0.01	-0.03	0.83	0.27	0.34	-0.02	0.8	0.45	0.79	-0.51
Good Will	0.88	0.89	0.34	0.12	0.48	0.76		0.53	0.82	0.75	0.56	0.87	0.72	0.81	0.91	-0.25	-0.21	0.91	0.43	0.69	0.09	0.96	0.57	0.7	-0.81
Short Term Investments	0.49	0.26	-0.13	0.4	-0.01	0.31	0.53		0.54	0.95	0.08	0.56	0.47	0.13	0.41	-0.72	-0.42	0.38	-0.05	0.06	-0.08	0.43	0.06	-0.06	-0.49
Total Liab	0.98	0.78	0.53	0.17	0.35	0.51	0.82	0.54		0.73	0.31	0.7	0.56	0.73	0.76	-0.1	0.04	0.83	0.22	0.4	-0.33	0.68	0.64	0.39	-0.57
Total Current Assets	0.7	0.51	0.06	0.33	0.15	0.49	0.75	0.95	0.73		0.23	0.71	0.6	0.38	0.62	-0.62	-0.38	0.6	0.11	0.26	-0.07	0.64	0.28	0.17	-0.62
Intangible Assets	0.35	0.4	0.06	-0.64	0.26	0.26	0.56	0.08	0.31	0.23		0.29	0.91	0.39	0.72	0.2	-0.5	0.42	0.47	0.89	0.33	0.62	0.53	0.63	-0.76
Long Term Debt	0.77	0.83	0.26	0.5	0.52	0.79	0.87	0.56	0.7	0.71	0.29		0.49	0.75	0.8	-0.31	-0.1	0.91	0.3	0.5	0.04	0.87	0.31	0.67	-0.78
Property Plant Equipment	0.57	0.48	0.05	-0.41	0.25	0.33	0.72	0.47	0.56	0.6	0.91	0.49		0.42	0.82	-0.08	-0.54	0.55	0.39	0.81	0.18	0.71	0.53	0.51	-0.86
Net Tangible Assets	0.84	0.98	0.7	0.19	0.59	0.87	0.81	0.13	0.73	0.38	0.39	0.75	0.42		0.85	0.25	0.11	0.93	0.35	0.52	-0.16	0.82	0.71	0.85	-0.56
Retained Earnings	0.83	0.88	0.44	-0.02	0.48	0.76	0.91	0.41	0.76	0.62	0.72	0.8	0.82	0.85		0.06	-0.26	0.91	0.4	0.75	0.0	0.91	0.69	0.81	-0.87
Capital Surpluse	-0.05	0.09	0.59	-0.42	0.18	-0.01	-0.25	-0.72	-0.1	-0.62	0.2	-0.31	-0.08	0.25	0.06		0.43	0.0	-0.09	0.03	-0.38	-0.2	0.46	0.26	0.21
Deferred Long Term Liab	0.04	0.05	0.53	0.25	0.26	-0.03	-0.21	-0.42	0.04	-0.38	-0.5	-0.1	-0.54	0.11	-0.26	0.43		0.0	-0.46	-0.43	-0.6	-0.31	0.06	-0.15	0.49
Long Term Investments	0.91	0.97	0.55	0.29	0.58	0.83	0.91	0.38	0.83	0.6	0.42	0.91	0.55	0.93	0.91	0.0	0.0		0.35	0.58	-0.11	0.9	0.6	0.79	-0.74
Short Term Debt	0.27	0.36	0.01	-0.27	0.02	0.27	0.43	-0.05	0.22	0.11	0.47	0.3	0.39	0.35	0.4	-0.09	-0.46	0.35		0.6	0.69	0.49	0.09	0.53	-0.42
Common Stock	0.46	0.54	-0.03	-0.4	0.39	0.34	0.69	0.06	0.4	0.26	0.89	0.5	0.81	0.52	0.75	0.03	-0.43	0.58	0.6		0.46	0.78	0.43	0.75	-0.86
Short Long Term Debt	-0.28	-0.11	-0.58	-0.25	-0.18	-0.02	0.09	-0.08	-0.33	-0.07	0.33	0.04	0.18	-0.16	0.0	-0.38	-0.6	-0.11	0.69	0.46		0.23	-0.39	0.25	-0.27
Long Term Debt Total	0.77	0.88	0.24	0.11	0.51	0.8	0.96	0.43	0.68	0.64	0.62	0.87	0.71	0.82	0.91	-0.2	-0.31	0.9	0.49	0.78	0.23		0.5	0.83	-0.86
Cash And Equivalents	0.68	0.68	0.64	-0.28	0.4	0.45	0.57	0.06	0.64	0.28	0.53	0.31	0.53	0.71	0.69	0.46	0.06	0.6	0.09	0.43	-0.39	0.5		0.52	-0.39
Net Invested Capital	0.54	0.83	0.38	-0.01	0.56	0.79	0.7	-0.06	0.39	0.17	0.63	0.67	0.51	0.85	0.81	0.26	-0.15	0.79	0.53	0.75	0.25	0.83	0.52		-0.7
Capital Stock	-0.62	-0.63	0.03	0.03	-0.39	-0.51	-0.81	-0.49	-0.57	-0.62	-0.76	-0.78	-0.86	-0.56	-0.87	0.21	0.49	-0.74	-0.42	-0.86	-0.27	-0.86	-0.39	-0.7

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A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Competition

Predict First American

Operating Profit Margin Over Time

First Pretax Profit Margin

Pretax Profit Margin

0.31

At this time, First American's Pretax Profit Margin is most likely to increase slightly in the upcoming years.

Based on the recorded statements, First American has an Operating Margin of -0.077%. This is 100.42% lower than that of the Insurance sector and significantly lower than that of the Financials industry. The operating margin for all United States stocks is 98.6% lower than that of the firm.

First Operating Margin Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses First American's direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of First American could also be used in its relative valuation, which is a method of valuing First American by comparing valuation metrics of similar companies.

First American is currently under evaluation in operating margin category among its peers.

First American ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, First American's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to First American's managers, analysts, and investors.

Environmental

Governance

Social

First Fundamentals

	Return On Equity	0.0195
	Return On Asset	0.0097
	Profit Margin	0.02 %
	Operating Margin	(0.08) %
	Current Valuation	6.94 B
	Shares Outstanding	103 M
	Shares Owned By Insiders	3.73 %
	Shares Owned By Institutions	89.60 %
	Number Of Shares Shorted	1.25 M
	Price To Earning	12.81 X
	Price To Book	1.37 X
	Price To Sales	1.19 X
	Revenue	938.5 M
	Gross Profit	4.29 B
	EBITDA	595.4 M
	Net Income	216.8 M
	Cash And Equivalents	1.22 B
	Cash Per Share	23.39 X
	Total Debt	1.39 B
	Debt To Equity	0.50 %
	Current Ratio	0.39 X
	Book Value Per Share	49.44 X
	Cash Flow From Operations	354.3 M
	Short Ratio	1.98 X
	Earnings Per Share	0.88 X
	Price To Earnings To Growth	2.04 X
	Target Price	76.4
	Number Of Employees	19.21 K
	Beta	1.31
	Market Capitalization	6.98 B
	Total Asset	16.8 B
	Retained Earnings	3.71 B
	Annual Yield	0.03 %
	Five Year Return	3.10 %
	Net Asset	16.8 B
	Last Dividend Paid	2.13

About First American Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze First American's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of First American using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of First American based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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When determining whether First American is a strong investment it is important to analyze First American's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact First American's future performance. For an informed investment choice regarding First Stock, refer to the following important reports:

How To Invest In First

Details

Is First Stock a good investment?

Details

What is First American's Net Worth?

Details

Largest Insurance - Specialty Companies

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Largest Financial Services Companies

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Check out First American Piotroski F Score and First American Altman Z Score analysis.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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.

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First American Stock Operating Margin

First American Company Operating Margin Analysis

Operating Margin

Operating Income

Revenue

100

Current First American Operating Margin

First Operating Margin Driver Correlations

First Pretax Profit Margin

Pretax Profit Margin

0.31

First Operating Margin Peer Comparison

First American ESG Sustainability

First Fundamentals

About First American Fundamental Analysis

Currently Active Assets on Macroaxis

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