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Upturn AI SWOT - About
FAF 
First American Corporation (FAF)
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Upturn Advisory Summary
12/05/2024: 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.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit -4.11% | Avg. Invested days 31 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 12/05/2024 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.83B USD | Price to earnings Ratio 52.75 | 1Y Target Price 76.2 |
Price to earnings Ratio 52.75 | 1Y Target Price 76.2 | ||
Volume (30-day avg) 654321 | Beta 1.37 | 52 Weeks Range 49.85 - 69.77 | Updated Date 04/2/2025 |
52 Weeks Range 49.85 - 69.77 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 3.29% | Basic EPS (TTM) 1.26 |
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 2.14% | Operating Margin (TTM) 8.52% |
Management Effectiveness
Return on Assets (TTM) 1.24% | Return on Equity (TTM) 2.71% |
Valuation
Trailing PE 52.75 | Forward PE 9.38 | Enterprise Value 7363564000 | Price to Sales(TTM) 1.11 |
Enterprise Value 7363564000 | Price to Sales(TTM) 1.11 | ||
Enterprise Value to Revenue 1.2 | Enterprise Value to EBITDA - | Shares Outstanding 102800000 | Shares Floating 98935748 |
Shares Outstanding 102800000 | Shares Floating 98935748 | ||
Percent Insiders 3.71 | Percent Institutions 92.53 |
Analyst Ratings
Rating 4.2 | Target Price 75 | Buy - | Strong Buy 3 |
Buy - | Strong Buy 3 | ||
Hold 2 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
First American Corporation
Company Overview
History and Background
First American Corporation was founded in 1889 as Orange County Title Company. It evolved through mergers and acquisitions, becoming a leading provider of title insurance and settlement services.
Core Business Areas
- Title Insurance and Services: Provides title insurance, closing and settlement services, and related services on residential and commercial properties.
- Specialty Insurance: Offers property and casualty insurance, and home warranty products.
- Data and Analytics: Provides data and analytics solutions to the real estate industry.
Leadership and Structure
Ken DeGiorgio serves as the Chief Executive Officer. The company has a typical corporate structure with a board of directors and various executive leadership positions overseeing different business segments.
Top Products and Market Share
Key Offerings
- Title Insurance: Provides title insurance policies that protect lenders and homebuyers from losses related to title defects. Competitors include Fidelity National Financial, Stewart Information Services, and Old Republic International. Market share is estimated around 25% in the US market.
- Settlement Services: Offers escrow, closing, and other settlement-related services for real estate transactions. Competitors include Fidelity National Financial, Stewart Information Services, and Old Republic International.
- Data and Analytics Solutions: Provides property data, valuation, and analytics solutions to various industries. CoreLogic, Black Knight are major competitors. Revenue from this product line is estimated at approximately 15% of total revenue.
Market Dynamics
Industry Overview
The title insurance and settlement services industry is influenced by factors such as interest rates, housing market activity, and regulatory changes. The industry is cyclical, experiencing growth during periods of strong real estate activity and contraction during downturns.
Positioning
First American Corporation holds a strong position as one of the largest title insurance companies in the United States. Its competitive advantages include its brand recognition, extensive data assets, and nationwide network of offices and agents.
Total Addressable Market (TAM)
The TAM for title insurance and settlement services is estimated to be around $20 billion annually in the US. First American, with approximately 25% market share, is well-positioned to capture a significant portion of this market.
Upturn SWOT Analysis
Strengths
- Strong brand reputation
- Extensive data assets
- Nationwide network of offices and agents
- Diversified product offerings
Weaknesses
- Sensitivity to housing market cycles
- Exposure to claims and litigation
- Regulatory scrutiny
- High fixed costs
Opportunities
- Expansion into new markets
- Development of new data and analytics solutions
- Increased adoption of digital technologies
- Growth in the refinance market
Threats
- Economic downturns
- Increased competition
- Rising interest rates
- Cybersecurity risks
Competitors and Market Share
Key Competitors
- FNF
- STC
- ORI
Competitive Landscape
First American Corporation competes with other large title insurance companies, as well as regional and local players. The company's advantages include its brand reputation, extensive data assets, and nationwide network.
Major Acquisitions
Docutech
- Year: 2020
- Acquisition Price (USD millions): 350
- Strategic Rationale: To enhance its digital mortgage capabilities and provide integrated technology solutions to lenders.
Growth Trajectory and Initiatives
Historical Growth: First American Corporation has experienced steady growth over the past years, driven by acquisitions and organic growth initiatives.
Future Projections: Analyst estimates for future growth vary depending on economic conditions, but generally expect moderate growth in revenue and earnings.
Recent Initiatives: Recent initiatives include investments in digital technologies, expansion into new markets, and development of new data and analytics solutions.
Summary
First American Corporation is a strong player in the title insurance industry, benefiting from a well-established brand and extensive network. Its financial performance is tied to the real estate market cycle, making it susceptible to downturns. The company is actively investing in technology and data analytics to drive future growth. Potential threats include increasing competition and regulatory changes.
Similar Companies
BLK
BlackRock Inc
BLK
BlackRock Inc
FNF
Fidelity National Financial Inc
FNF
Fidelity National Financial Inc
ORI
Old Republic International Corp
ORI
Old Republic International Corp
STC
Stewart Information Services Corp
STC
Stewart Information Services Corp
Sources and Disclaimers
Data Sources:
- Company filings (10K, 10Q)
- Analyst reports
- Industry publications
- First American Corporation Investor Relations Website
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered investment advice. Market data can vary.
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. Kenneth David DeGiorgio BA, MBA | ||
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 in Santa Ana, California.
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