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First American Corporation (FAF)
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Upturn Advisory Summary
12/18/2025: FAF (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
4 Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $76.8
1 Year Target Price $76.8
| 2 | Strong Buy |
| 1 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -20.32% | Avg. Invested days 27 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 12/18/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.49B USD | Price to earnings Ratio 13.73 | 1Y Target Price 76.8 |
Price to earnings Ratio 13.73 | 1Y Target Price 76.8 | ||
Volume (30-day avg) 4 | Beta 1.28 | 52 Weeks Range 52.20 - 67.49 | Updated Date 12/17/2025 |
52 Weeks Range 52.20 - 67.49 | Updated Date 12/17/2025 | ||
Dividends yield (FY) 3.40% | Basic EPS (TTM) 4.64 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 6.81% | Operating Margin (TTM) 14.5% |
Management Effectiveness
Return on Assets (TTM) 2.91% | Return on Equity (TTM) 9.29% |
Valuation
Trailing PE 13.73 | Forward PE 9.38 | Enterprise Value 6365210000 | Price to Sales(TTM) 0.92 |
Enterprise Value 6365210000 | Price to Sales(TTM) 0.92 | ||
Enterprise Value to Revenue 0.9 | Enterprise Value to EBITDA - | Shares Outstanding 101900000 | Shares Floating 98376298 |
Shares Outstanding 101900000 | Shares Floating 98376298 | ||
Percent Insiders 3.7 | Percent Institutions 95.67 |
Upturn AI SWOT
First American Corporation
Company Overview
History and Background
The First American Corporation (NYSE: FAF) was founded in 1889 in Santa Ana, California. It began as a small title insurance operation and has since grown into a leading global provider of title insurance, settlement services, and risk management solutions for the real estate and mortgage industries. Over the decades, First American has expanded its services through organic growth and strategic acquisitions, evolving into a comprehensive financial services provider with a strong focus on property transactions.
Core Business Areas
- Title Insurance and Services: This segment provides title insurance policies, title searches, and escrow services to protect property owners and lenders against title defects. It is the company's largest and most established segment, serving residential and commercial real estate transactions.
- Property & Casualty Insurance: This segment offers a range of property and casualty insurance products, including homeowners insurance, flood insurance, and other specialized coverages, primarily through its subsidiary, First American Property & Casualty Insurance Company.
- Other: This includes various other services such as real estate data analytics, flood determination services, and appraisal management, supporting the broader real estate ecosystem.
Leadership and Structure
First American Corporation is led by a seasoned management team with extensive experience in the financial services and real estate industries. The company operates through a decentralized structure, with its primary business segments managed by dedicated leadership teams. Key executives include the CEO, CFO, and heads of major operating divisions, all reporting to the Board of Directors.
Top Products and Market Share
Key Offerings
- Title Insurance: First American's core offering, providing protection against financial loss from title defects. It is a critical component of virtually all real estate transactions. Competitors include Fidelity National Financial (FNF), Old Republic International (ORI), and Stewart Information Services (STC). Specific market share data for individual products is proprietary, but First American is consistently one of the top players in the title insurance market.
- Settlement and Escrow Services: Facilitates the closing of real estate transactions, handling funds, documents, and property transfers. This service is intertwined with title insurance. Competitors largely overlap with title insurance providers.
- Property & Casualty Insurance: Homeowners, flood, and other property-related insurance policies. Competitors include large national insurance carriers like State Farm, Allstate, and Nationwide, as well as specialized flood insurers. First American's market share in this segment is smaller compared to its title insurance business.
- Real Estate Data & Analytics: Provides data and analytics services to real estate professionals, lenders, and investors. This is a growing area with competitors like CoreLogic, Black Knight, and various data aggregators.
Market Dynamics
Industry Overview
First American operates within the real estate services industry, which is closely tied to the housing market. Key trends include fluctuating interest rates, housing supply and demand, regulatory changes, and technological advancements in digital closings and data analytics. The industry is highly competitive and fragmented, particularly in title insurance.
Positioning
First American is a leading player in the North American title insurance and settlement services market, known for its strong brand reputation, extensive agent network, and robust technological capabilities. Its competitive advantages include its scale, financial strength, and ability to offer a comprehensive suite of services across the real estate transaction lifecycle.
Total Addressable Market (TAM)
The total addressable market for title insurance and settlement services in the U.S. is estimated to be in the tens of billions of dollars annually, driven by the volume of real estate transactions. First American, along with its main competitors, captures a significant portion of this market. The TAM for related services like property data and P&C insurance further expands the overall market opportunity.
Upturn SWOT Analysis
Strengths
- Strong brand recognition and established market leadership in title insurance.
- Extensive network of agents and direct operations across the U.S.
- Diversified revenue streams beyond core title insurance.
- Significant financial strength and a history of stable performance.
- Investment in technology to enhance efficiency and customer experience.
Weaknesses
- Sensitivity to cyclicality of the real estate market and interest rate fluctuations.
- Potential for regulatory changes impacting pricing or services.
- Dependence on third-party agents in some regions.
- Competition from larger, more diversified financial institutions and fintech companies.
Opportunities
- Expansion into new geographic markets and international opportunities.
- Growth in digital closing solutions and proptech integration.
- Leveraging data analytics for new product development and customer insights.
- Acquisitions of complementary businesses to expand service offerings.
- Increased demand for ancillary services like appraisal and flood determination.
Threats
- Economic downturns leading to reduced real estate transaction volumes.
- Intensifying competition from both traditional players and new entrants.
- Cybersecurity risks and data breaches.
- Potential for increased regulatory scrutiny and compliance costs.
- Disruptive technological innovations from competitors.
Competitors and Market Share
Key Competitors
- Fidelity National Financial (FNF)
- Old Republic International (ORI)
- Stewart Information Services (STC)
Competitive Landscape
First American's advantage lies in its established brand, extensive distribution network, and comprehensive service offering. It competes effectively by providing reliable and efficient services, while also innovating with technology. Competitors often focus on similar areas, with FNF being its largest direct rival. Pricing and customer service are key differentiators.
Major Acquisitions
TitleWorks LLC
- Year: 2021
- Acquisition Price (USD millions):
- Strategic Rationale: To expand its direct title operations and enhance its reach in key markets, integrating technology and expertise to improve operational efficiency.
Docutech
- Year: 2021
- Acquisition Price (USD millions): 450
- Strategic Rationale: To strengthen its digital closing and document generation capabilities, accelerating the adoption of e-closings and digital mortgage solutions.
Growth Trajectory and Initiatives
Historical Growth: First American has demonstrated steady growth over the past decade, driven by expansion in its title and settlement services segments and strategic acquisitions. While revenue and earnings can be cyclical due to real estate market dynamics, the company has shown resilience and an ability to adapt.
Future Projections: Analyst projections for First American's future growth are generally positive, assuming a stabilization or modest recovery in the real estate market. Growth is expected to be driven by increased transaction volumes, expansion of digital services, and continued market share gains. Investments in technology and data analytics are key to future growth.
Recent Initiatives: Recent initiatives include investments in digital closing platforms, enhanced data analytics capabilities, and the optimization of its agent and direct operations network. The company continues to focus on operational efficiency and customer service innovation.
Summary
First American Corporation is a strong and established leader in the title insurance and real estate services industry. Its diversified revenue streams, robust financial health, and ongoing technological investments are significant strengths. The company needs to closely monitor the cyclical nature of the real estate market and the evolving competitive landscape, particularly from fintech disruptors, to maintain its growth trajectory.
Similar Stocks
Sources and Disclaimers
Data Sources:
- First American Corporation Investor Relations
- Company Annual Reports (10-K)
- Financial News Outlets (e.g., Wall Street Journal, Bloomberg)
- Industry Research Reports
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It does not constitute investment advice. Financial data and market share estimates are subject to change and may not be entirely precise.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About First American Corporation
Exchange NYSE | Headquaters Santa Ana, CA, United States | ||
IPO Launch date 2010-05-28 | CEO & Director Mr. Mark Edward Seaton | ||
Sector Financial Services | Industry Insurance - Specialty | Full time employees 19038 | Website https://www.firstam.com |
Full time employees 19038 | Website https://www.firstam.com | ||
First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments. The Title Insurance and Services segment issues title insurance policies on residential and commercial property, as well as offers related products and services internationally. This segment also provides closing and/or escrow services; products, services, and solutions to mitigate risk or otherwise facilitate real estate transactions; appraisals and other valuation-related products and services; lien release, document custodial, and default-related products and services; document generation services; warehouse lending services; and subservices mortgage loans; as well as banking, trust, and wealth management services. In addition, it accommodates tax-deferred exchanges of real estate; and maintains, manages, and provides access to title plant data and records. This segment offers its products through a network of direct operations and agents in various states and in the District of Columbia, as well as in Canada, the United Kingdom, Australia, New Zealand, South Korea, and internationally. The Home Warranty segment provides home warranty products, including residential service contracts that cover residential systems, such as heating and air conditioning systems, and various appliances against failures that occur as the result of normal usage during the coverage period. This segment operates in various states and the District of Columbia. First American Financial Corporation was founded in 1889 and is based in Santa Ana, California.
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