FIDELITY NATIONAL FINANCIAL (FNF)
US31620R3030 - Common Stock
We assign a fundamental rating of 5 out of 10 to FNF. FNF was compared to 140 industry peers in the Insurance industry. Both the profitability and financial health of FNF have multiple concerns. FNF is growing strongly while it is still valued neutral. This is a good combination! FNF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FNF was profitable.
FNF had a positive operating cash flow in the past year.
Each year in the past 5 years FNF has been profitable.
In the past 5 years FNF always reported a positive cash flow from operatings.
1.2 Ratios
FNF's Return On Assets of 0.79% is on the low side compared to the rest of the industry. FNF is outperformed by 60.43% of its industry peers.
FNF has a Return On Equity of 9.29%. This is comparable to the rest of the industry: FNF outperforms 44.60% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.93%, FNF is in line with its industry, outperforming 43.17% of the companies in the same industry.
FNF had an Average Return On Invested Capital over the past 3 years of 2.60%. This is in line with the industry average of 4.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 9.29% | ||
| ROIC | 0.93% |
ROA(3y)2.41%
ROA(5y)4%
ROE(3y)19.45%
ROE(5y)19.03%
ROIC(3y)2.6%
ROIC(5y)4.64%
1.3 Margins
FNF's Profit Margin of 5.55% is in line compared to the rest of the industry. FNF outperforms 45.32% of its industry peers.
In the last couple of years the Profit Margin of FNF has declined.
With a Operating Margin value of 8.36%, FNF perfoms like the industry average, outperforming 43.17% of the companies in the same industry.
In the last couple of years the Operating Margin of FNF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.36% | ||
| PM (TTM) | 5.55% | ||
| GM | N/A |
OM growth 3Y-24.86%
OM growth 5Y-6.71%
PM growth 3Y-30.74%
PM growth 5Y-11.86%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
FNF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FNF has been increased compared to 1 year ago.
FNF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FNF has an improved debt to assets ratio.
2.2 Solvency
FNF has a debt to FCF ratio of 0.56. This is a very positive value and a sign of high solvency as it would only need 0.56 years to pay back of all of its debts.
FNF's Debt to FCF ratio of 0.56 is fine compared to the rest of the industry. FNF outperforms 79.14% of its industry peers.
FNF has a Debt/Equity ratio of 0.52. This is a neutral value indicating FNF is somewhat dependend on debt financing.
The Debt to Equity ratio of FNF (0.52) is worse than 64.03% of its industry peers.
Although FNF does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 0.56 | ||
| Altman-Z | N/A |
ROIC/WACC0.12
WACC8.02%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
FNF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.02%.
FNF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.47% yearly.
Looking at the last year, FNF shows a very strong growth in Revenue. The Revenue has grown by 23.78%.
The Revenue has been growing by 9.13% on average over the past years. This is quite good.
EPS 1Y (TTM)6.02%
EPS 3Y-12.89%
EPS 5Y5.47%
EPS Q2Q%5.69%
Revenue 1Y (TTM)23.78%
Revenue growth 3Y2.93%
Revenue growth 5Y9.13%
Sales Q2Q%29.7%
3.2 Future
The Earnings Per Share is expected to grow by 27.04% on average over the next years. This is a very strong growth
FNF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.43% yearly.
EPS Next Y31.95%
EPS Next 2Y32.35%
EPS Next 3Y27.04%
EPS Next 5YN/A
Revenue Next Year16.72%
Revenue Next 2Y13%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.98, the valuation of FNF can be described as correct.
FNF's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of FNF to the average of the S&P500 Index (28.96), we can say FNF is valued slightly cheaper.
A Price/Forward Earnings ratio of 9.87 indicates a reasonable valuation of FNF.
64.75% of the companies in the same industry are more expensive than FNF, based on the Price/Forward Earnings ratio.
FNF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FNF is valued a bit more expensive than the industry average as 66.19% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FNF indicates a rather cheap valuation: FNF is cheaper than 86.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.23 | ||
| EV/EBITDA | 34.61 |
4.3 Compensation for Growth
FNF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FNF's earnings are expected to grow with 27.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)2.74
EPS Next 2Y32.35%
EPS Next 3Y27.04%
5. Dividend
5.1 Amount
FNF has a Yearly Dividend Yield of 3.28%.
FNF's Dividend Yield is a higher than the industry average which is at 4.25.
FNF's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
On average, the dividend of FNF grows each year by 8.93%, which is quite nice.
FNF has paid a dividend for at least 10 years, which is a reliable track record.
FNF has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.93%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
69.91% of the earnings are spent on dividend by FNF. This is not a sustainable payout ratio.
The dividend of FNF is growing, but earnings are growing more, so the dividend growth is sustainable.
DP69.91%
EPS Next 2Y32.35%
EPS Next 3Y27.04%
FIDELITY NATIONAL FINANCIAL
NYSE:FNF (11/21/2024, 8:04:00 PM)
After market: 60.66 0 (0%)60.66
+0.58 (+0.97%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 9.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.47
PEG (5Y)2.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 9.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.36% | ||
| PM (TTM) | 5.55% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.02%
EPS 3Y-12.89%
EPS 5Y
EPS Q2Q%
EPS Next Y31.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.78%
Revenue growth 3Y2.93%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y