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Upturn AI Summary - About
First American Corporation(FAF)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for FAF
10/16/2026: FAF (1-star) is currently NOT-A-BUY. Pass it for now.
First American Financial Corporation is a well-established leader in the U.S. title insurance and settlement services market. The company benefits from a deep library of proprietary real estate data and long-standing relationships with mortgage lenders, which support its stable, if cyclical, business model. Its primary investment story centers on the integration of digital technology to improve efficiency in the traditionally manual real estate closing process. Risks include high sensitivity to mortgage interest rate fluctuations and intense competition within the industry. The stock may suit dividend-focused and value-oriented investors who can tolerate market cyclicality, while monitoring the company's progress in digitizing its service offerings.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | Growth is tied to the cyclical housing market rather than secular expansion. |
| Momentum investor | Mixed fit | Momentum is highly conditional on favorable interest rate environments and housing market upswings. |
| Value investor | Strong fit | The stock often trades at valuations that reflect cyclical risks rather than long-term earnings potential. |
| Dividend investor | Strong fit | The company has a history of providing reliable dividends, making it suitable for income-focused portfolios. |
| Low-risk investor | Mixed fit | Real estate cyclicality introduces volatility that may not suit the most conservative investors. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | The stock price is sensitive to mortgage interest rate trends and housing market reports. |
| Valuation risk | Medium | Valuations are often depressed during market cycles, though this can provide an entry point. |
| Competition risk (Title Underwriters) | Medium | Intense competition from FNF and other underwriters limits pricing power. |
| Business quality | Strong | The company holds a strong, established position in a necessary financial service sector. |
| Dividend income | Medium | While consistent, dividends are subject to board approval and capital preservation requirements. |
| Execution risk | Medium | Successfully digitizing the legacy closing process is critical for future margin expansion. |
Price Behavior
Rolling Over
The price momentum is slowing down and beginning to turn downward.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -32.26% | Avg. Invested days 28 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/16/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.63B USD | Price to earnings Ratio 8.99 | 1Y Target Price 85 |
Price to earnings Ratio 8.99 | 1Y Target Price 85 | ||
Volume (30-day avg) 987.0K shares | Beta 1.26 | 52 Weeks Range 55.23 - 79.13 | Updated Date 10/18/2026 |
52 Weeks Range 55.23 - 79.13 | Updated Date 10/18/2026 | ||
Dividends yield (FY) 3.47% | Basic EPS (TTM) 7.22 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Title Insurance | Issuance of title policies to protect lenders and buyers. | This is the core, high-margin business that generates revenue from every home sale. |
| Settlement Services | Escrow, closing, and notary services. | These services provide steady transaction-based fees during both purchases and refinances. |
| Specialty Insurance | Home warranties and property casualty services. | This segment offers a secondary, less cyclical revenue stream for the company. |
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 2026-10-21 | When After Market | Estimate 1.85 | Actual - |
Profitability
Profit Margin 9.33% | Operating Margin (TTM) 15.57% |
Management Effectiveness
Return on Assets (TTM) 4.09% | Return on Equity (TTM) 13.85% |
Valuation
Trailing PE 8.99 | Forward PE 9.38 | Enterprise Value 7.01B | Price to Sales(TTM) 0.83 |
Enterprise Value 7.01B | Price to Sales(TTM) 0.83 | ||
Enterprise Value to Revenue 0.88 | Enterprise Value to EBITDA - | Shares Outstanding 102.10M | Shares Floating 98.76M |
Shares Outstanding 102.10M | Shares Floating 98.76M | ||
Percent Insiders 3.53 | Percent Institutions 98.75 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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