First American Stock Performance
| FAF Stock | USD 57.78 0.40 0.69% |
The firm shows a Beta (market volatility) of 1.62, which means a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, First American will likely underperform. First American has an expected return of -0.0488%. Please make sure to confirm First American value at risk, accumulation distribution, day typical price, as well as the relationship between the skewness and rate of daily change , to decide if First American performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
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Over the last 90 days First American has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, First American is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders. ...more
Actual Historical Performance (%)
One Day Return (1.53) | Five Day Return 3.56 | Year To Date Return (8.32) | Ten Year Return 109.16 | All Time Return 68.7 |
Forward Dividend Yield 0.0364 | Payout Ratio 0.5627 | Forward Dividend Rate 2.12 | Dividend Date 2024-03-15 | Ex Dividend Date 2024-03-07 |
1 | Disposition of 2757 shares by Mark Seaton of First American at 60.23 subject to Rule 16b-3 | 02/16/2024 |
2 | Peak National House Price Appreciation May be Behind Us, According to First American Data Analytics Monthly Home Price Index Report | 02/20/2024 |
3 | Acquisition by Doti James L of 2601 shares of First American subject to Rule 16b-3 | 02/22/2024 |
4 | Payment of 522 shares by Matthew Wajner of First American subject to Rule 16b-3 | 02/23/2024 |
5 | Acquisition by Matthew Wajner of 2933 shares of First American subject to Rule 16b-3 | 02/26/2024 |
| First American dividend paid on 15th of March 2024 | 03/15/2024 |
6 | Dallas-Plano-Irving Home Prices Up 4.4 percent Year Over Year in February, According to First American Data Analytics Monthly Home Price Index Report | 03/19/2024 |
7 | First American Financial stock rises after upgrade to Outperform at KBW | 03/21/2024 |
8 | Survey Economists say hot inflation is at risk of lingering until at least 2025 | 04/05/2024 |
9 | New construction remains popular as existing home listings continue to lag | 04/10/2024 |
10 | seasonal home maintenance checklist | 04/11/2024 |
11 | Los Angeles-Long Beach-Glendale Home Prices Up 4.2 percent Year Over Year in March, According to First American Data Analytics Monthly Home Price Index Report | 04/16/2024 |
12 | First American Financial Earnings Expected to Grow What to Know Ahead of Next Weeks Release | 04/17/2024 |
13 | First American Financial Corporations Popularity With Investors Is Clear | 04/19/2024 |
| Begin Period Cash Flow | 1.2 B |
First |
First American Relative Risk vs. Return Landscape
If you would invest 6,018 in First American on January 25, 2024 and sell it today you would lose (240.00) from holding First American or give up 3.99% of portfolio value over 90 days. First American is generating negative expected returns assuming volatility of 1.7781% on return distribution over 90 days investment horizon. In other words, 15% of stocks are less volatile than First, and above 99% of all equities are expected to generate higher returns over the next 90 days. Expected Return |
| Risk |
First American Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for First American's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as First American, and traders can use it to determine the average amount a First American's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0275
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| Negative Returns | FAF |
Estimated Market Risk
| 1.78 actual daily | 15 85% of assets are more volatile |
Expected Return
| -0.05 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.03 actual daily | 0 Most of other assets perform better |
Based on monthly moving average First American is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of First American by adding First American to a well-diversified portfolio.
First American Fundamentals Growth
First Stock prices reflect investors' perceptions of the future prospects and financial health of First American, and First American fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on First Stock performance.
| Return On Equity | 0.0452 | |||
| Return On Asset | 0.016 | |||
| Profit Margin | 0.04 % | |||
| Operating Margin | 0.05 % | |||
| Current Valuation | 4.55 B | |||
| Shares Outstanding | 103.56 M | |||
| Price To Earning | 12.81 X | |||
| Price To Book | 1.22 X | |||
| Price To Sales | 0.98 X | |||
| Revenue | 6 B | |||
| Gross Profit | 4.29 B | |||
| EBITDA | 462.9 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 | 47.02 X | |||
| Cash Flow From Operations | 354.3 M | |||
| Earnings Per Share | 2.07 X | |||
| Market Capitalization | 6.02 B | |||
| Total Asset | 16.8 B | |||
| Retained Earnings | 3.71 B | |||
About First American Performance
To evaluate First American Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when First American generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare First Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand First American market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents First's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.| Last Reported | Projected for Next Year | ||
| Days Of Inventory On Hand | -1.5 K | -1.4 K | |
| Return On Tangible Assets | 0.02 | 0.02 | |
| Return On Capital Employed | 0.02 | 0.02 | |
| Return On Assets | 0.01 | 0.02 | |
| Return On Equity | 0.04 | 0.07 |
Things to note about First American performance evaluation
Checking the ongoing alerts about First American for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for First American help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| First American generated a negative expected return over the last 90 days | |
| First American is unlikely to experience financial distress in the next 2 years | |
| The company 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. Debt can assist First American until it has trouble settling it off, either with new capital or with free cash flow. So, First American's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like First American sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for First to invest in growth at high rates of return. When we think about First American's use of debt, we should always consider it together with cash and equity. | |
| Over 90.0% of First American shares are owned by institutional investors | |
| On 15th of March 2024 First American paid $ 0.53 per share dividend to its current shareholders | |
| Latest headline from simplywall.st: First American Financial Corporations Popularity With Investors Is Clear |
- Analyzing First American's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether First American's stock is overvalued or undervalued compared to its peers.
- Examining First American's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating First American's management team can have a significant impact on its success or failure. Reviewing the track record and experience of First American's management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of First American's stock. These opinions can provide insight into First American's potential for growth and whether the stock is currently undervalued or overvalued.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in First American. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. For more detail on how to invest in First Stock please use our How to Invest in First American guide.Note that the First American information on this page should be used as a complementary analysis to other First American's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Complementary Tools for First Stock analysis
When running First American's price analysis, check to measure First American's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First American is operating at the current time. Most of First American's value examination focuses on studying past and present price action to predict the probability of First American's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First American's price. Additionally, you may evaluate how the addition of First American to your portfolios can decrease your overall portfolio volatility.
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Is First American's industry 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 (0.38) | Dividend Share 2.1 | Earnings Share 2.07 | Revenue Per Share 57.56 | Quarterly Revenue Growth (0.15) |
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.