First American Financial Corporation (FAF) Stock Analysis
Last updated Oct 27, 2026
Published Opportunity
Published 2 times (first Jul 6, 2026, latest Oct 6, 2026). Cards show equal-weight average entry, return, and QQQ across those signals; the chart starts at the first publication and averages active signals by day.
Health Check
Last analyzed Oct 23, 2026
- Financial Health 65
- Profitability 55
- Business Quality 65
- Balance Sheet 65
- Cash Flow 50
Why this rating?
Health 43/100 — Avoid
Entry timing is weak right now. Quality may be fine; the setup is not.
Company overview
First American Financial Corporation (FAF) is a Insurance - Specialty company in the Financial Services sector. Compound Radar rates First American Financial Corporation 43/100 (Avoid) due to solid business quality, steady revenue growth, and manageable leverage.
Investment profile
- Quality Moderate
- Growth Moderate
- Balance Sheet Adequate
- Valuation Attractive
Financial highlights
Valuation
- P/E 8.92
- Forward P/E 9.4
- PEG 2.98
- EV/Revenue 0.9
Profitability
- Revenue Growth 5.3%
- Gross Margin 63.7%
- Operating Margin 13.1%
- Net Margin 9.1%
- ROE 13.7%
Financial strength
- Cash $1.84B
- Debt $2.55B
- Net Cash $-714.60M
- Free Cash Flow $762.50M
- Current Ratio 0.33
Similar companies
Peers in Insurance - Specialty, ranked by Financial Health.
Latest quoted price for the name. Helps anchor the setup in today’s market level.
Health Entry- NMI Holdings, Inc. Insurance - Specialty NMIH$42.83 78 Health 78 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Essent Group Ltd. Insurance - Specialty ESNT$66.70 73 Health 73 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- MGIC Investment Corporation Insurance - Specialty MTG$28.72 70 Health 70 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Strong Entry Strong EntryTiming looks favorable across trend, momentum, valuation, support, and catalysts.
- Radian Group Inc. Insurance - Specialty RDN$35.70 67 Health 67 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Strong Entry Strong EntryTiming looks favorable across trend, momentum, valuation, support, and catalysts.
- Fidelity National Financial, Inc. Insurance - Specialty FNF$39.45 64 Health 64 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
FAQ
How Compound Radar scores and tracks First American Financial Corporation (FAF).