First American Financial Corporation

FAF

$76.51

+3.32%

N/A+$2.46

Financial Services

Insurance - Specialty

NYSE

Active Trading

First American Financial Corporation (FAF) delivers financial services primarily through its diverse subsidiaries. The company's operations are divided into two main divisions: ...

Key Metrics of FAF

Snapshot

Latest / TTM · 6 periods

Market Cap

$7.81B

ROCE

2.8%

EV / EBITDA

8.29x

-2.3% YoY

FCF Yield

10.7%

-1.4% YoY

Cash Conversion Cycle

39.1d

Current Ratio

55.46

Quick take

TTM —

Positive CCC

Key Metrics

Latest / TTM · 6 periods

Valuation trend

Valuation trend table

Metric	2021	2022	2023	2024	2025	TTM
Market CapTotal market value of all shares outstanding.	$8.68B	$5.60B	$6.72B	$6.49B	$6.35B	$7.81B
Enterprise ValueCompany value including debt and cash adjustments.	$9.86B	$6.59B	$5.25B	$7.10B	$6.87B	$6.94B
EV / SalesHow many dollars investors pay per dollar of sales.	1.07x	0.87x	0.88x	1.16x	0.92x	1.66x
EV / EBITDAValuation multiple versus operating earnings before non-cash charges.	5.27x	11.25x	8.82x	13.60x	5.72x	8.29x
Net Debt / EBITDALeverage ratio using net debt divided by EBITDA.	0.63	1.70	-2.46	1.18	0.43	-1.04

Returns + ROCE gauge

ROCE latest

2.8%

Prev year 5.1%

Returns + ROCE gauge table

Metric	2021	2022	2023	2024	2025	TTM
ROEProfit generated from shareholders' equity.	21.5%	5.6%	4.5%	2.7%	11.3%	13.6%
ROAProfit generated from total assets.	7.5%	1.8%	1.3%	0.9%	3.8%	3.9%
ROICReturn generated on invested operating capital.	-50.6%	-14.2%	-21.6%	-20.9%	16.9%	7.3%
ROCEOperating return on long-term capital used.	18.3%	4.4%	3.7%	2.1%	5.1%	2.8%
Earnings YieldEarnings as a percentage of market value.	14.3%	4.7%	3.2%	2.0%	9.8%	9.5%

Cash flow quality

Cash flow quality table

Metric	2021	2022	2023	2024	2025	TTM
FCFFCash flow available to all capital providers.	$1.11B	$595.75M	$194.96M	$799.13M	$881.30M	$962.97M
FCFECash flow available to equity holders after debt flows.	$1.70B	$350.40M	$21.70M	$909.50M	$1.02B	$980.50M
FCF YieldFree cash flow divided by market capitalization.	12.2%	9.3%	1.4%	10.5%	12.0%	10.7%
Income QualityHow well accounting earnings are backed by cash flow.	0.98	2.94	1.63	6.77	1.53	1.35
Capex / OCFShare of operating cash flow spent on capital expenditures.	13.2%	33.3%	74.3%	24.3%	19.8%	17.1%

Operating efficiency

Operating efficiency table

Metric	2021	2022	2023	2024	2025	TTM
DSOAverage days to collect cash from customers.	17.9d	18.7d	35.6d	26.0d	21.2d	39.1d
DIOAverage days inventory stays before being sold.	0.0d	0.0d	0.0d	0.0d	0.0d	0.0d
DPOAverage days the company takes to pay suppliers.	8.9d	5.6d	10.1d	10.3d	53.3d	0.0d
Operating CycleTime from buying inventory to collecting receivables.	17.9d	18.7d	35.6d	26.0d	21.2d	39.1d
Cash Conversion CycleNet days cash is tied in operations.	9.0d	13.1d	25.5d	15.7d	-32.1d	39.1d