Explain this page
Arphra AIPlain-English read on First American Financial Corporation’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Quality composite
BMixed
A snapshot of the latest fiscal year’s margins, returns on capital, balance-sheet strength and efficiency, computed from the income statement, balance sheet and cash-flow rows. Source income / balance / cash_flow.
Profitability
Gross margin95.6%
Operating margin11.1%
Net margin8.4%
ROE11.3%
ROA3.8%
ROIC10.4%
Liquidity & leverage
Current ratio—
Quick ratio—
Debt / equity0.35×
Net debt / EBITDA0.43×
Interest coverage5×
Efficiency & per-share
Asset turnover0.46×
Inventory days0
Days sales out.21
FCF / share$7.35
Book value / share$53.03
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Headline | ||||||||
| Market cap | — | — | — | $6.49B | $6.35B | — | — | — |
| Enterprise value | — | — | — | $7.1B | $6.87B | — | — | — |
| Multiples | ||||||||
| P / E | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 1.16 | 0.92 | — | — | — |
| EV / FCF | — | — | — | 10.46 | 9.00 | — | — | — |
| Yields | ||||||||
| Earnings yield | — | — | — | +2.02% | +9.80% | — | — | — |
| Free cash flow yield | — | — | — | +10.47% | +12.01% | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Margins | ||||||||
| Gross margin | +61.20% | +56.34% | +61.85% | +61.37% | +95.61% | +73.28% | +73.33% | +72.37% |
| Operating margin | +17.81% | +4.29% | +4.57% | +2.70% | +11.10% | +6.13% | +6.22% | +6.13% |
| EBITDA margin | +20.32% | +7.72% | +9.93% | +8.53% | +16.11% | +11.59% | +11.52% | +11.66% |
| EBIT margin | +18.60% | +5.51% | +6.78% | +5.15% | +13.21% | +8.29% | +8.62% | +8.20% |
| Pre-tax margin | +17.81% | +4.29% | +4.57% | +2.70% | +11.10% | +6.25% | +6.23% | +6.25% |
| Net margin | +13.47% | +3.46% | +3.61% | +2.14% | +8.35% | +4.81% | +4.70% | +4.66% |
| Cost structure | ||||||||
| Cost of revenue / sales | +38.80% | +43.66% | +38.15% | +38.63% | +4.39% | +27.02% | +26.84% | +27.14% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +25.51% | +30.81% | +33.16% | +33.65% | 0.00% | +22.40% | +21.82% | +22.13% |
| Effective tax rate | +23.90% | +18.54% | +21.47% | +19.83% | +24.33% | +21.21% | +21.83% | +21.56% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Returns | ||||||||
| Return on equity (ROE) | +21.46% | +5.62% | +4.46% | +2.66% | +11.31% | +5.97% | +5.98% | +5.99% |
| Return on assets (ROA) | +7.54% | +1.76% | +1.29% | +0.88% | +3.83% | +1.98% | +1.87% | +1.87% |
| Return on capital (ROC) | +19.91% | +4.68% | +3.89% | +2.25% | +11.16% | +5.33% | +5.52% | +5.46% |
| Return on invested capital (ROIC) | +15.06% | +3.78% | +3.07% | +1.78% | +8.40% | +4.19% | +4.17% | +4.15% |
| Asset turnover | +56.01% | +50.78% | +35.70% | +41.05% | +45.88% | +41.08% | +39.69% | +40.14% |
| DuPont · ROE decomposition | ||||||||
| Net margin | +13.47% | +3.46% | +3.61% | +2.14% | +8.35% | +4.81% | +4.70% | +4.66% |
| Asset turnover (× revenue / assets) | +56.01% | +50.78% | +35.70% | +41.05% | +45.88% | +41.08% | +39.69% | +40.14% |
| Equity multiplier (× assets / equity) | +284.47% | +319.48% | +345.54% | +302.59% | +295.10% | +302.01% | +320.43% | +320.40% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Turnover | ||||||||
| Asset turnover | 0.56 | 0.51 | 0.36 | 0.41 | 0.46 | 0.41 | 0.40 | 0.40 |
| Fixed-asset turnover | 12.20 | 8.58 | 6.13 | 6.38 | 6.73 | — | — | — |
| Inventory turnover | — | — | — | — | — | — | — | — |
| Receivables turnover | 20.38 | 19.52 | 10.25 | 14.04 | 17.21 | — | — | — |
| Payables turnover | 41.10 | 65.02 | 36.15 | 35.45 | — | — | — | — |
| Days outstanding | ||||||||
| Days sales outstanding (DSO) | 17.91 | 18.70 | 35.60 | 26.01 | 21.21 | — | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | 8.88 | 5.61 | 10.10 | 10.30 | — | — | — | — |
| Cash conversion cycle | 9.02 | 13.09 | 25.51 | 15.71 | 21.21 | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 0.98 | 2.97 | 1.63 | 6.85 | 1.53 | 2.34 | 2.36 | 2.42 |
| FCF / Net income | 0.85 | 1.98 | 0.42 | 5.18 | 1.23 | 1.54 | 1.61 | 1.63 |
| FCF margin | +11.50% | +6.85% | +1.52% | +11.10% | +10.24% | +7.41% | +7.59% | +7.59% |
| OCF margin | +13.24% | +10.27% | +5.91% | +14.66% | +12.77% | +11.27% | +11.10% | +11.28% |
| CapEx / Revenue | +1.74% | +3.42% | +4.39% | +3.57% | +2.53% | +3.42% | +3.56% | +3.43% |
| CapEx / D&A | 1.01 | 1.56 | 1.40 | 1.05 | 0.87 | — | — | — |
| Stock-based comp / Revenue | +0.58% | +0.89% | +0.82% | +0.85% | 0.00% | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 11.14 | 2.45 | 2.07 | 1.26 | 6.00 | 6.68 | 7.09 | 7.49 |
| EPS · basic | 11.18 | 2.46 | 2.08 | 1.26 | 6.02 | 6.74 | 7.03 | 7.46 |
| Book value / share | 51.91 | 43.63 | 46.49 | 47.24 | 53.03 | 61.61 | 64.44 | 64.59 |
| Tangible BV / share | 30.43 | 19.10 | 21.50 | 22.28 | 34.52 | 61.61 | 64.44 | 64.59 |
| Sales / share | 82.71 | 70.78 | 57.34 | 58.68 | 71.79 | 76.44 | 81.95 | 83.06 |
| Operating CF / share | 10.95 | 7.27 | 3.39 | 8.60 | 9.17 | 8.62 | 9.09 | 9.37 |
| Free cash flow / share | 9.51 | 4.85 | 0.87 | 6.51 | 7.35 | 5.67 | 6.22 | 6.30 |
| Dividends / share | 1.91 | 2.02 | 2.07 | 2.12 | 2.15 | 2.58 | 2.71 | 2.74 |
| Payout ratio | +17.16% | +82.51% | +99.91% | +168.34% | +35.86% | +70.15% | +70.34% | +70.93% |
| Retention ratio | +82.84% | +17.49% | +0.09% | -68.34% | +64.14% | +29.85% | +29.66% | +29.07% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 7y CAGR |
|---|---|---|---|---|---|---|---|---|---|
| Top-line | |||||||||
| Revenue · YoY | — | -17.58% | -21.02% | +2.04% | +21.64% | +7.48% | +5.19% | +3.26% | -0.83% |
| Gross profit · YoY | — | -24.13% | -13.29% | +1.25% | +89.52% | -17.62% | +5.27% | +1.91% | +1.57% |
| Profit | |||||||||
| Operating income · YoY | — | -80.16% | -15.75% | -39.72% | +399.52% | -40.68% | +6.79% | +1.73% | -14.86% |
| EBITDA · YoY | — | -68.69% | +1.57% | -12.26% | +129.59% | -22.70% | +4.58% | +4.55% | -8.39% |
| Net income · YoY | — | -78.81% | -17.57% | -39.53% | +374.29% | -38.06% | +2.74% | +2.34% | -14.78% |
| Operating | |||||||||
| EBIT · YoY | — | -75.57% | -2.82% | -22.59% | +212.13% | -32.50% | +9.38% | -1.75% | -11.77% |
| R&D · YoY | — | — | — | — | — | — | — | — | — |
| Per-share | |||||||||
| EPS · diluted · YoY | — | -78.01% | -15.51% | -39.13% | +376.19% | +11.39% | +6.04% | +5.69% | -5.51% |
| EPS · basic · YoY | — | -78.00% | -15.45% | -39.42% | +377.78% | +11.89% | +4.37% | +6.15% | -5.61% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Leverage | ||||||||
| Total debt | $2.46B | $2.28B | $2.19B | $2.42B | $1.91B | $2.75B | $2.87B | $2.99B |
| Net debt | $1.17B | $994.5M | -$1.47B | $616.8M | $518.6M | -$137.41M | -$101.01M | -$239.34M |
| Net debt / EBITDA | 0.63 | 1.70 | -2.46 | 1.18 | 0.43 | -0.15 | -0.10 | -0.24 |
| Debt / equity | 0.43 | 0.49 | 0.45 | 0.49 | 0.35 | 0.43 | 0.43 | 0.44 |
| Debt / assets | +14.95% | +15.25% | +13.06% | +16.23% | +11.74% | +14.10% | +13.54% | +13.81% |
| Equity / assets | +35.15% | +31.30% | +28.94% | +33.05% | +33.89% | +33.11% | +31.21% | +31.21% |
| Coverage | ||||||||
| EBITDA / interest expense | 25.86 | 6.30 | 4.49 | 3.49 | 7.64 | 5.12 | 5.25 | 5.21 |
| Operating income / interest | 22.67 | 3.50 | 2.07 | 1.11 | 5.26 | 2.71 | 2.84 | 2.74 |
| Interest expense | $72.4M | $93M | $132.5M | $149.6M | $157M | $181.06M | $184.53M | $194.6M |
| Liquidity | ||||||||
| Current ratio | 0.23 | 0.22 | 0.46 | 0.32 | — | — | — | — |
| Quick ratio | 0.23 | 0.22 | 0.46 | 0.32 | — | — | — | — |
| Cash ratio | 0.17 | 0.17 | 0.39 | 0.26 | — | — | — | — |
| Working capital | -$5.72B | -$5.91B | -$5.07B | -$4.77B | $1.39B | — | — | — |
| Working capital / revenue | -62.12% | -77.84% | -84.54% | -77.97% | +18.63% | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 0.92x | 1.16x |
| Earnings yield | 9.8% | 2.0% |
| FCF yield | 12.0% | 10.5% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 11.3% | 2.7% |
| ROA | 3.8% | 0.9% |
| ROIC | 18.5% | 1.6% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | 0.43 | 1.18 |
| Interest coverage | — | — |
| Current ratio | 0.00x | 0.32x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).