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Is this Large Market Cap Stock target price reasonable for First American Financial Corporation (NYSE:FAF)?

The company in question is, First American Financial Corporation (NYSE:FAF) currently with a stock price of 40.65 (0.62% today). The market cap for First American Financial Corporation is 4416.93, and is in the sector Financial, and Property & Casualty Insurance industry. The target price for First American Financial Corporation is 43.5. Currently First American Financial Corporation is trading with a P/E of 14.33, and a forward P/E of 13.46. Average volume for First American Financial Corporation is 620.03 and so far today it is 123501.

Performance in the last year for First American Financial Corporation has been 5.07%. For EPS growth, First American Financial Corporation has seen a growth of 22.20%, and is looking to grow in the next year to 0.17%. More long term stats show that EPS growth has been 16.90% over the last five years and could be 7.30% for the next five years. First American Financial Corporation has seen sales growth quarter over quarter at -44.10%, with EPS growth quarter over quarter at -22.70%. The 20-day simple moving average is -0.90%, with the 200-day simple moving average coming to 7.62%.

Since the IPO date for First American Financial Corporation on the 5/28/2010, First American Financial Corporation has seen performance year to date to be 14.99%. With First American Financial Corporation trading at 40.65, the dividend yield is 3.37%, and the EPS is 2.82.

So could First American Financial Corporation, be undervalued? Well as said before P/E is 14.33. The PEG is 1.96, P/S is 0.83 and the P/B is at 1.52. The P/cash is 3.56, with P/free cash flow at 14.89.

First American Financial Corporation ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0.2, and total debt/equity at 0.2.

In terms of margins, First American Financial Corporation has a gross margin of *TBA, an operating margin of 9.30% and a profit margin of 5.90%.Payout ratio for First American Financial Corporation is 35.90%. Return on assets come to 3.70% with return on investment coming to 9.50%.

Insider ownership for First American Financial Corporation, is at 4.05% and institutional ownership comes to 88.10%. Outstanding shares are at 109.33. While shares float is 106.18. The float short is currently 2.15%, and short ratio is 3.68.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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