Added to YB: 2022-10-17
Pitch date: 2022-10-16
FAF [bullish]
First American Financial Corporation
+83%
current return
Author Info
No bio for this author
Company Info
First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments.
Market Cap
$7.5B
Pitch Price
$40.47
Price Target
72.00 (-3%)
Dividend
2.98%
EV/EBITDA
5.23
P/E
10.24
EV/Sales
0.97
Sector
Insurance
Category
value
Buying First American Financial Again: Dirt Cheap Housing Play With Low Downside Risk
FAF: America's 2nd-largest title insurer, rebought at $45 (sold at $75 in '21). Trades 6-8x trough EPS (~$6/share) vs historical 12x P/E (=$72 target). Refi disappears but purchases (2.5x refi) resilient on millennials/incomes; future refi optionality. 4.4% dividend (just raised), $400M buyback (8% of shares). Hidden data/digital biz ~$2B (20x), implying core insurance <$3B for $600M profits. Low downside, cheap housing play.
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