First American Financial Corporation (FAF)
NYSEFinancialsInsurance - SpecialtySnapshot 2026-09-04
$72.75-4.91%
Close 2026-09-04 · 1-day change
NYSEFinancialsInsurance - SpecialtySnapshot 2026-09-04
QuarterlyIQ Insights · FAF
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within financials on a research-validated quality screen. As of 2026-09-04.
The screen ranks FAF against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 3 of the last 3 quarter-over-quarter moves. Historically, Financials names rated strong grew net income 67% of the time over the next year (vs 56% for the rest of the cohort, n=7680).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 1 guided quarters · 20.6% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on expanding revenue and profitability in the Title Insurance and Services segment, including commercial business growth and improving pretax margins.
Stated as a priority in 4 of last 4 quarters. Title Insurance and Services segment revenue grew from $1.72B in 2025-Q2 to $2.01B in 2026-Q2 (+17%), with commercial revenues up 34%. Pretax margin improved from 12.6% to 15.7%. Management consistently emphasized commercial business growth and margin expansion, and financials show delivering progress.
“CEO: 'Our commercial business is on pace for a record year in 2026... Title Insurance and Services segment revenues up 17%.'”
“CEO: 'Our commercial business achieved record first-quarter revenue... Title Insurance and Services segment revenues up 17%.'”
“CEO: 'Our commercial performance was particularly strong, with revenue up 35%.'”
“CEO: 'The strength of our commercial business... enabled us to deliver an adjusted pretax margin of 12.9%.'”
Integrate AI across workflows to improve employee effectiveness, customer experience, and operational efficiency.
Stated as a priority in 4 of last 4 quarters. Management consistently highlights AI integration to enhance operations and customer service. While financials show growth and margin improvement, direct quantitative impact of AI initiatives is not separately disclosed, indicating recurring focus with limited specific delivery metrics.
“CEO: 'Our primary strategic focus is to leverage AI across our business... investing in people, platforms, and products.'”
Sustain and incrementally increase dividend per share to return capital to shareholders.
Stated as a priority in 4 of last 4 quarters. Dividend per share increased modestly from $0.54 in 2025-Q2 to $0.55 in 2026-Q2, with management raising the annual dividend by 2% to $2.20. The company is maintaining and slightly growing dividends, delivering on stated capital return commitments.
Improve cash generation from operations to support business and capital allocation priorities.
Stated as a priority in 4 of last 4 quarters. Cash flow from operations fluctuated, with $272.5M in 2025-Q3, $369.3M in 2025-Q4, $5.6M in 2026-Q1, and $356.6M in 2026-Q2. The trajectory shows variability but overall strong cash generation in recent quarters, indicating partial delivery with some volatility.
“Cash from operating activities was $356.6 million in Q2 2026.”
Focus on growing operating income across segments to improve profitability.
Stated as a priority in 4 of last 4 quarters. Operating income rose from $195 million in 2025-Q2 to $284 million in 2026-Q2, showing improved profitability. Management's focus on increasing operating income aligns with financial results, indicating delivering progress.
“Operating income was $283.9 million in Q2 2026.”
Over the trailing year it converted -0.07x of net income into operating cash flow. Historically, Financials names rated fragile grew net income 52% of the time over the next year (vs 61% for the rest of the cohort, n=6844).
Most sensitive to the broad stock market and real (inflation-adjusted) rates.
Not enough signal to read sensitivity to the US dollar, Fed net liquidity (low R² over the window).
12 material management or governance events in the past 24 months, led by executive changes. Historically, Financials names rated stable grew net income 56% of the time over the next year (vs 57% for the rest of the cohort, n=2725).
Not investment advice. As of 2026-09-04.
“CEO: 'We are committed to deploying AI solutions across the company to amplify talents and better serve customers.'”
“CEO: 'Execution of our strategic technology initiatives - particularly those leveraging AI - are progressing as planned.'”
“CEO: 'By modernizing platforms and integrating AI, we expect to drive productivity gains and unlock new revenue opportunities.'”
“Dividend per share declared was $0.55 in Q2 2026, up from $0.54 last year.”
“Dividend per share declared was $0.55 in Q1 2026, up from $0.54 last year.”
“Raised common stock dividend by 2 percent to an annual rate of $2.20 per share.”
“Raised common stock dividend by 2 percent to an annual rate of $2.20 per share.”
“Cash from operating activities was $5.6 million in Q1 2026.”
“Cash from operating activities was $369.3 million in Q4 2025.”
“Cash from operating activities was $272.5 million in Q3 2025.”
“Operating income was $161.8 million in Q1 2026.”
“Operating income was $287.4 million in Q4 2025.”
“Operating income was $247.0 million in Q3 2025.”