First American Financial Corporation FAF has been in investors’ good books on the back of strategic acquisitions, solid segment performance, higher return on equity and prudent capital deployment.
The company has a decent earnings surprise history. The company beat estimates in each of the last four quarters with the average positive surprise being 18.47%.
First American’s trailing 12-month return on equity of 16.1% is higher than the industry’s 6.4%. This highlights the company’s efficient utilization of its shareholders’ funds to generate earnings.
The stock has a VGM Score of B. VGM Score helps to identify stocks with the most attractive value, best growth and the most promising momentum.
First American’s top line has been witnessing a positive trend over the years on the back of strong direct premiums and escrow fees, higher agent premiums, net investment income and information and other revenues. The metric witnessed CAGR of 5.8%