First American Financial Corporation cash flow to debt ratio of 49.89% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

First American Financial Corporation's free cash flow has increased 12.26% from $679.20M last year to $762.50M, signaling increasing performance

First American Financial Corporation's debt to equity ratio is 0.31, which means that the company's assets are healthy financed, signaling financial stability.

First American Financial Corporation's debt has decreased relative to shareholder equity from 0.49 last year to 0.31 today, signaling strengthened financials

First American Financial Corporation has a net debt to EBITDA ratio of 0.43x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

First American Financial Corporation's interest coverage ratio of 3.12 indicates that earnings with margin can cover interest payments on company debt

First American Financial Corporation's profit margin has increased (731.38%) in the last year from 2.14% to 17.81%, signaling increasing performance

First American Financial Corporation's short-term assets of $1.39B exceed its short-term liabilities of $0.00

First American Financial Corporation's return on assets of 3.93% is lower than the 5.00% threshold, indicating inefficient asset utilization

First American Financial Corporation's return on equity of 13.62%, is lower than 15.00%, indicating bad performance

First American Financial Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

First American Financial Corporation had positive net income in 5 out of 5 years, indicating stable and consistent earnings

First American Financial Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

First American Financial Corporation has a free cash flow yield of 10.34%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

First American Financial Corporation's yearly earnings has increased 374.29% since last year from $131.10M to $621.80M, signaling increasing performance

First American Financial Corporation's yearly revenue has increased 21.75% since last year from $6.12B to $7.45B, signaling increasing performance

ROIC 2.16% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

First American Financial Corporation's 3-year revenue CAGR of -0.66% is negative, indicating declining revenue over the past 3 years

First American Financial Corporation had revenue growth in 3 out of 5 years, indicating consistent revenue performance

First American Financial Corporation had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

First American Financial Corporation is overvalued relative to its fair value price of 66.02 based on Discounted Cash Flow model

First American Financial Corporation has an earnings yield of 10.04%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

First American Financial Corporation is undervalued relative to its fair value price of 77.00 based on EBITDA multiple model

First American Financial Corporation has an EV/EBITDA ratio of 6.58x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

First American Financial Corporation is overvalued relative to its fair value price of 27.14 based on Earnings Fair Value model

First American Financial Corporation's earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

First American Financial Corporation has a price-to-book ratio of 1.32x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

First American Financial Corporation has a price-to-sales ratio of 1.77x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue