First American Corporation (New) Common Stock (FAF)

FairStock Score: 81/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach First American as a title insurer and home-warranty provider, a business where scale and underwriting discipline matter, though the moat is not obviously wide. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $2.1 billion, net income $218.5 million and diluted EPS $2.12. A year earlier, in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $1.8 billion, net income $146.1 million and diluted EPS $1.41, so recent results are improving. Fiscal Q1 2026, the quarter ended 2026-03-31, had revenue $1.8 billion, net income $125.1 million and diluted EPS $1.21. For full fiscal 2025, the year ended 2025-12-31, revenue was $7.5 billion, net income $621.8 million and diluted EPS $6.00; full fiscal 2024, the year ended 2024-12-31, net income was only $131.1 million. That swing shows how cyclical title insurance can be. Financial health looks reasonable: FairStock calculates ROE of 13.85%, debt-to-equity of 0.49 and Piotroski F-Score of 6/9. At the 2026-10-13 close of $62.17, FairStock's P/E is 8.62 and P/B is 1.13, which is modest if earnings hold. The PEG ratio of 0.17 also looks low, but the Lynch category given is SLOW GROWER — Shrinking, because profit fell about 2.2% a year over five years and revenue grew only 1.0%. That tells me not to overpay for a boom. I would want CET1, net interest margin and combined ratio, but they are absent. On balance, the price is reasonable and the recent quarter is strong, but underwriting and real-estate cycles still rule.

In plain English: First American sells title insurance and home warranty coverage tied to home sales and mortgages. The latest quarter showed more revenue and profit than a year earlier, and the company earns a solid return on shareholders' money. Based on its earnings and accounting value, the shares look inexpensive, but profits have been uneven and housing-market swings matter.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer