Compound Radar

First American Financial Corporation (FAF) Stock Analysis

Price $64.39
Market cap $6.57B
Entry status Wait

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.

Full track record →
Avg entry $65.73
Avg return -1.7%
Avg QQQ -3.6%
Alpha vs QQQ +1.9%

Health Check

Last analyzed Oct 23, 2026

43
43/100 Avoid
  • Financial Health 65
  • Profitability 55
  • Business Quality 65
  • Balance Sheet 65
  • Cash Flow 50

Why this rating?

Health 43/100 — Avoid

Strongest Financial Health 65/100
Softest Cash Flow 50/100
Wait

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

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FAQ

How Compound Radar scores and tracks First American Financial Corporation (FAF).

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