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First American Financial Corporation FAF

First American Financial Corporation scores average on business quality (4.8 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$61.20Oct 9, 2026
Business qualityAverage
Next earningsOct 21, 2026
Insiders, 90 daysSelling

Why it matters

  1. What First American Financial Corporation does

    First American Financial provides title insurance and settlement services for real estate transactions, collecting premiums and fees from homebuyers and lenders.

  2. What it does best

    First American commands deep proprietary land title plant records that take decades to replicate, securing a top quartile return on equity of 13.6% compared to peers like Erie Indemnity at 24.5%.

  3. The main risk

    Real estate market downturns directly compress transaction volumes, exposing its $7.9B revenue base to severe cyclical drops in housing activity.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margin stands at 15.2% and FCF margin at 24.0%, delivering solid cash generation despite low sector profitability rank.

MoatWeak

Its proprietary title plants and historical data archives lock in regional agents and title examiners, supported by an 85th percentile sector ranking in revenue growth.

GrowthSteady

Revenue grew 21.6% to $7.9B, accelerating sharply compared to recent historical multi-year declines.

Financial healthFair

Debt-to-equity sits at 0.4x with interest coverage of 7.1x, while free cash flow reaches $832M, reflecting a stable financial position.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $244K outside pre-planned sales.

Our sealed record on FAF

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is FAF a good business?

First American Financial Corporation scores average on the Cluenex quality check (4.8 of 10), measured against its own industry. Profitability is weak, moat weak, growth steady and financial health fair.

Are insiders buying FAF?

In the last 90 days of SEC Form 4 filings: 1 sold $244K outside pre-planned sales.

When does FAF report earnings?

Oct 21, 2026.

For members

See FAF today

  • Today's verdict on FAF, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “First American Financial Corporation (FAF)”, https://cluenex.com/stocks/faf/, data as of Oct 10, 2026.