FIDELITY NATIONAL FINANCIAL (FNF) Stock Fundamental Analysis
NYSE:FNF - New York Stock Exchange, Inc. - US31620R3030 - Common Stock
Overall FNF gets a fundamental rating of 5 out of 10. We evaluated FNF against 143 industry peers in the Insurance industry. FNF has a bad profitability rating. Also its financial health evaluation is rather negative. FNF is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! Finally 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.
In the past 5 years FNF has always been profitable.
In the past 5 years FNF always reported a positive cash flow from operatings.
1.2 Ratios
FNF has a Return On Assets of 0.79%. This is in the lower half of the industry: FNF underperforms 62.41% of its industry peers.
The Return On Equity of FNF (9.29%) is comparable to the rest of the industry.
FNF has a Return On Invested Capital (0.93%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for FNF is below the industry average of 4.61%.
| 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
The Profit Margin of FNF (5.55%) is worse than 60.28% 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 44.68% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FNF 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.
The debt/assets ratio for FNF has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of FNF is 0.56, which is an excellent value as it means it would take FNF, only 0.56 years of fcf income to pay off all of its debts.
FNF's Debt to FCF ratio of 0.56 is fine compared to the rest of the industry. FNF outperforms 78.01% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that FNF is somewhat dependend on debt financing.
FNF's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. FNF is outperformed by 70.21% 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/WACC0.11
WACC8.16%
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%.
The Earnings Per Share has been growing slightly by 5.47% on average over the past years.
FNF shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.78%.
Measured over the past years, FNF shows a quite strong growth in Revenue. The Revenue has been growing by 9.13% on average per year.
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
FNF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.93% yearly.
Based on estimates for the next years, FNF will show a quite strong growth in Revenue. The Revenue will grow by 8.51% on average per year.
EPS Next Y30.29%
EPS Next 2Y33.12%
EPS Next 3Y26.92%
EPS Next 5Y21.93%
Revenue Next Year17.47%
Revenue Next 2Y11.82%
Revenue Next 3Y9.48%
Revenue Next 5Y8.51%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 14.52, which indicates a correct valuation of FNF.
FNF's Price/Earnings ratio is in line with the industry average.
FNF is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
FNF is valuated reasonably with a Price/Forward Earnings ratio of 9.45.
Based on the Price/Forward Earnings ratio, FNF is valued a bit cheaper than the industry average as 65.25% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, FNF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 9.45 |
4.2 Price Multiples
FNF's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FNF is more expensive than 65.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FNF is valued cheaply inside the industry as 83.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.16 | ||
| EV/EBITDA | 33.49 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as FNF's earnings are expected to grow with 26.92% in the coming years.
PEG (NY)0.48
PEG (5Y)2.66
EPS Next 2Y33.12%
EPS Next 3Y26.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.47%, FNF has a reasonable but not impressive dividend return.
FNF's Dividend Yield is a higher than the industry average which is at 2.99.
Compared to an average S&P500 Dividend Yield of 2.28, FNF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
The dividend of FNF is nicely growing with an annual growth rate of 8.93%!
FNF has been paying a dividend for at least 10 years, so it has 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 Years13
Div Non Decr Years13
5.3 Sustainability
FNF pays out 69.91% of its income as dividend. This is not a sustainable payout ratio.
FNF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP69.91%
EPS Next 2Y33.12%
EPS Next 3Y26.92%
FIDELITY NATIONAL FINANCIAL
NYSE:FNF (1/21/2025, 8:04:00 PM)
After market: 58.79 0 (0%)58.79
+0.75 (+1.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.35%
Inst Owner Change-0.03%
Ins Owners5.09%
Ins Owner Change9.91%
Market Cap16.09B
Analysts74
Price Target68.75 (16.94%)
Short Float %1.06%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend1.83
Dividend Growth(5Y)8.93%
DP69.91%
Div Incr Years13
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.03%
Min EPS beat(2)-8.18%
Max EPS beat(2)0.13%
EPS beat(4)1
Avg EPS beat(4)-11.13%
Min EPS beat(4)-26.06%
Max EPS beat(4)0.13%
EPS beat(8)2
Avg EPS beat(8)-10.55%
EPS beat(12)5
Avg EPS beat(12)-4.59%
EPS beat(16)9
Avg EPS beat(16)5.76%
Revenue beat(2)1
Avg Revenue beat(2)2.39%
Min Revenue beat(2)-2.83%
Max Revenue beat(2)7.62%
Revenue beat(4)3
Avg Revenue beat(4)11.12%
Min Revenue beat(4)-2.83%
Max Revenue beat(4)22.19%
Revenue beat(8)6
Avg Revenue beat(8)6.91%
Revenue beat(12)9
Avg Revenue beat(12)8.03%
Revenue beat(16)13
Avg Revenue beat(16)11.54%
PT rev (1m)0.3%
PT rev (3m)10.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.86%
EPS NY rev (1m)0%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.89%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 9.45 | ||
| P/S | 1.19 | ||
| P/FCF | 2.16 | ||
| P/OCF | 2.12 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 33.49 |
EPS(TTM)4.05
EY6.89%
EPS(NY)6.22
Fwd EY10.58%
FCF(TTM)27.17
FCFY46.22%
OCF(TTM)27.71
OCFY47.14%
SpS49.42
BVpS29.54
TBVpS-12.32
PEG (NY)0.48
PEG (5Y)2.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | 9.29% | ||
| ROCE | 1.27% | ||
| ROIC | 0.93% | ||
| ROICexc | 0.99% | ||
| ROICexgc | 1.42% | ||
| OM | 8.36% | ||
| PM (TTM) | 5.55% | ||
| GM | N/A | ||
| FCFM | 54.99% |
ROA(3y)2.41%
ROA(5y)4%
ROE(3y)19.45%
ROE(5y)19.03%
ROIC(3y)2.6%
ROIC(5y)4.64%
ROICexc(3y)2.77%
ROICexc(5y)5.27%
ROICexgc(3y)3.71%
ROICexgc(5y)10.05%
ROCE(3y)3.54%
ROCE(5y)6.32%
ROICexcg growth 3Y-34.09%
ROICexcg growth 5Y-45.9%
ROICexc growth 3Y-34.8%
ROICexc growth 5Y-37.82%
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
F-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 0.56 | ||
| Debt/EBITDA | 9.16 | ||
| Cap/Depr | -21.81% | ||
| Cap/Sales | 1.09% | ||
| Interest Coverage | 5.98 | ||
| Cash Conversion | 1659.3% | ||
| Profit Quality | 990.15% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC8.16%
ROIC/WACC0.11
Cap/Depr(3y)168.98%
Cap/Depr(5y)185.51%
Cap/Sales(3y)1.05%
Cap/Sales(5y)1.06%
Profit Quality(3y)564.97%
Profit Quality(5y)378.86%
High Growth Momentum
Growth
EPS 1Y (TTM)6.02%
EPS 3Y-12.89%
EPS 5Y5.47%
EPS Q2Q%5.69%
EPS Next Y30.29%
EPS Next 2Y33.12%
EPS Next 3Y26.92%
EPS Next 5Y21.93%
Revenue 1Y (TTM)23.78%
Revenue growth 3Y2.93%
Revenue growth 5Y9.13%
Sales Q2Q%29.7%
Revenue Next Year17.47%
Revenue Next 2Y11.82%
Revenue Next 3Y9.48%
Revenue Next 5Y8.51%
EBIT growth 1Y7.51%
EBIT growth 3Y-22.66%
EBIT growth 5Y1.8%
EBIT Next Year87.09%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y72.05%
FCF growth 3Y62.9%
FCF growth 5Y49.14%
OCF growth 1Y69.76%
OCF growth 3Y60.12%
OCF growth 5Y47.02%