First American offers a rare combination of quality-franchise characteristics — wide economic moat, 254% free-cash-flow-to-net-income conversion, and four consecutive earnings beats averaging roughly 23% positive surprise — at a forward multiple of 9.1 times earnings with a PEG ratio of 0.13; the only near-term constraint is momentum sitting just below the threshold for a clean entry, which argues for patient accumulation on pullbacks rather than aggressive sizing at current levels.
Thesis pillars
- Attractive Valuation Quality Franchise↓Deteriorating
- Earnings Beat Streak↓Deteriorating
- Exceptional Fcf Conversion↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 18, 2026
First American Corporation (New (FAF) Stock Analysis
Financial Services · Insurance - Specialty
Hold if already holding. Not a fresh buy at $63.72, but acceptable to hold if already in. Reasons: Thin upside margin: 7.9%; Weak growth.
First American Financial Corporation provides title insurance and settlement services through its title insurance and services segment, which contributed 93.6% of 2025 consolidated revenues. Policies are distributed via direct operations and independent agents across all 49... Read more
Hold if already holding. Not a fresh buy at $63.72, but acceptable to hold if already in. Reasons: Thin upside margin: 7.9%; Weak growth. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Score 5.6/10, moderate confidence.
Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 103d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About First American Corporation (New
About First American Corporation (New
First American Financial Corporation derived 93.6% of consolidated revenues in 2025 from its title insurance and services segment, which issues policies across all 49 states permitting title insurance, the District of Columbia, and internationally through direct operations in Canada, the United Kingdom, South Korea, Australia, and New Zealand. The company employed 19,102 people at December 31, 2025, with 12,143 in the United States and 6,959 outside. International operations accounted for approximately 7.6% of title insurance and services segment revenues in 2025.
First American earns revenue from premiums collected at closing plus ancillary escrow, settlement, and closing fees, with volume correlating directly to real estate transaction counts, interest rate levels, and home affordability. Policies flow through both a direct channel (captive sales representatives) and an agency channel (independent agents who retain a portion of collected premium and remit the remainder to First American as compensation for risk transfer). Major national competitors named in the 10-K include Fidelity National Financial, Inc., Old Republic International Corporation, and Stewart Title Guaranty Company. The home warranty segment, operating in 36 states, sells residential service contracts covering HVAC systems and appliances, with revenue tied to residential purchase volume. The company's federal savings bank subsidiary supplements earnings by investing escrow and trust deposits in fixed income securities, with the bank holding $6.8 billion in assets and $6.2 billion in deposits at December 31, 2025.
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First American's federal savings bank deposits consist primarily of funds held in trust pending real estate transaction closings rather than core retail deposits. When interest rates are elevated, net interest income from this transactional float supplements title premium earnings; during periods of declining transaction volumes, both premium revenue and float income compress simultaneously. The 10-K notes that the return on these funds deposited at the company's bank "tends to decline" during periods of unfavorable economic conditions, creating correlated pressure across the company's two primary earnings streams in any downturn scenario.
See also: Financial Services · Insurance - Specialty
From First American Corporation (New's most recent 10-K filing, extracted June 10, 2026.
Recent developments
updated 2026-10-30Recent Developments — First American Corporation (New
Latest news
- NEWS Entropy Technologies LP Purchases New Stake in First American Financial Corporation $FAF - MarketBeat — MarketBeat neutral
- NEWS First American Executive Chairman Cancels Unvested Equity Awards - TipRanks — TipRanks negative
- NEWS First American Financial (FAF) is a top-ranked value stock: Should you buy? - MSN — MSN positive
- NEWS First American Financial (FAF) is a Top-Ranked Value Stock: Should You Buy? - Yahoo Finance — Yahoo Finance positive
- NEWS First American Title Introduces AgentNet® Assist: Title Intelligence, an AI-Powered Document Analysis Capability - Busin — Business Wire positive
Generated 2026-10-30T11:22:45Z.
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Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $63.72, but acceptable to hold if already in. Reasons: Thin upside margin: 7.9%; Weak growth. Chart setup: No clear chart pattern; technical signals are mixed. Maintain position. Not compelling to add more. Analyst target $68.73 (+7.9%), stop $60.00 (−6.2%), A.R:R 1.4:1. Score 5.6/10, moderate confidence.
Analyst target: $68.73 (+7.9% upside). Analyst target $68.73 (+7.9%), stop $60.00 (−6.2%), A.R:R 1.4:1. Stop-loss: $60.00.
Thin upside margin: 7.9%; Weak growth.
First American Corporation (New trades at a P/E of 9.0 (forward 9.3). TrendMatrix value score: 8.3/10. Verdict: Hold.
11 analysts cover FAF with a consensus score of 4.0/5. Average price target: $79.
What does First American Corporation (New do?First American Financial Corporation provides title insurance and settlement services through its title insurance and...
First American Financial Corporation provides title insurance and settlement services through its title insurance and services segment, which contributed 93.6% of 2025 consolidated revenues. Policies are distributed via direct operations and independent agents across all 49 states permitting title insurance, plus international markets including Canada, the UK, and South Korea. The company ranks second by U.S. market share per ALTA data; its home warranty segment adds coverage in 36 states.