First American Price To Book vs. Cash Per Share
| Y1F Stock | EUR 58.00 1.00 1.69% |
For First American profitability analysis, we use financial ratios and fundamental drivers that measure the ability of First American to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well First American Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between First American's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of First American Financial over time as well as its relative position and ranking within its peers.
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First American Financial Cash Per Share vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining First American's current stock value. Our valuation model uses many indicators to compare First American value to that of its competitors to determine the firm's financial worth. First American Financial is rated below average in price to book category among its peers. It is rated third in cash per share category among its peers fabricating about 10.09 of Cash Per Share per Price To Book. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the First American's earnings, one of the primary drivers of an investment's value.First Cash Per Share vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
First American |
| = | 1.25 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.
First American |
| = | 12.58 X |
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.
First Cash Per Share Comparison
First American is rated second in cash per share category among its peers.
First American Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in First American, profitability is also one of the essential criteria for including it into their portfolios because, without profit, First American will eventually generate negative long term returns. The profitability progress is the general direction of First American's change in net profit over the period of time. It can combine multiple indicators of First American, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
First American Financial Corporation, through its subsidiaries, provides financial services. First American Financial Corporation was founded in 1889 and is headquartered in Santa Ana, California. FIRST AMERN operates under Insurance - Specialty classification in Germany and is traded on Frankfurt Stock Exchange. It employs 18251 people.
First Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on First American. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of First American position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the First American's important profitability drivers and their relationship over time.
Use First American in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if First American position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in First American will appreciate offsetting losses from the drop in the long position's value.First American Pair Trading
First American Financial Pair Trading Analysis
The ability to find closely correlated positions to First American could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First American when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back First American - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling First American Financial to buy it.
The correlation of First American is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as First American moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First American Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for First American can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your First American position
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?
Run Long Short Funds Thematic Idea Now
Long Short Funds
Funds or Etfs that are designed to hedge away market risk by investing in combination of bonds, stocks, derivative instruments as well as short positions to maximize returns irrespective of market conditions. The Long Short Funds theme has 42 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 Long Short Funds Theme or any other thematic opportunities.
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Other Information on Investing in First Stock
To fully project First American's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of First American Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include First American's income statement, its balance sheet, and the statement of cash flows.