FIDELITY NATIONAL FINANCIAL (FNF)
US31620R3030 - Common Stock
FNF gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. Both the profitability and financial health of FNF have multiple concerns. FNF is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! FNF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year FNF was profitable.
In the past year FNF had a positive cash flow from operations.
Each year in the past 5 years FNF has been profitable.
FNF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.79%, FNF is doing worse than 62.14% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.29%, FNF is in line with its industry, outperforming 43.57% of the companies in the same industry.
With a Return On Invested Capital value of 0.93%, FNF perfoms like the industry average, outperforming 42.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FNF is in line with the industry average of 4.38%.
| 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
Looking at the Profit Margin, with a value of 5.55%, FNF is in line with its industry, outperforming 40.71% of the companies in the same industry.
FNF's Profit Margin has declined in the last couple of years.
FNF's Operating Margin of 8.36% is in line compared to the rest of the industry. FNF outperforms 45.71% of its industry peers.
FNF's Operating Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, FNF has more shares outstanding
The number of shares outstanding for FNF has been reduced compared to 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 77.86% 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.
FNF has a Debt to Equity ratio of 0.52. This is in the lower half of the industry: FNF underperforms 69.29% 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
WACC8.09%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.02% over the past year.
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%.
FNF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.13% yearly.
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 26.92% on average over the next years. This is a very strong growth
Based on estimates for the next years, FNF will show a quite strong growth in Revenue. The Revenue will grow by 9.39% on average per year.
EPS Next Y30.29%
EPS Next 2Y33.12%
EPS Next 3Y26.92%
EPS Next 5YN/A
Revenue Next Year18.08%
Revenue Next 2Y13.32%
Revenue Next 3Y9.39%
Revenue Next 5YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.85, FNF is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of FNF is on the same level as its industry peers.
FNF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
A Price/Forward Earnings ratio of 9.02 indicates a reasonable valuation of FNF.
FNF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FNF is cheaper than 65.71% of the companies in the same industry.
FNF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.85 | ||
| Fwd PE | 9.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FNF is valued a bit more expensive than 64.29% of the companies in the same industry.
85.71% of the companies in the same industry are more expensive than FNF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.06 | ||
| EV/EBITDA | 31.88 |
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.
A more expensive valuation may be justified as FNF's earnings are expected to grow with 26.92% in the coming years.
PEG (NY)0.46
PEG (5Y)2.53
EPS Next 2Y33.12%
EPS Next 3Y26.92%
5. Dividend
5.1 Amount
FNF has a Yearly Dividend Yield of 3.62%. Purely for dividend investing, there may be better candidates out there.
FNF's Dividend Yield is a higher than the industry average which is at 4.33.
FNF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
The dividend of FNF is nicely growing with an annual growth rate of 8.93%!
FNF has paid a dividend for at least 10 years, which is a reliable track record.
FNF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.93%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
69.91% of the earnings are spent on dividend by FNF. 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 (12/20/2024, 8:12:15 PM)
After market: 56.11 0 (0%)56.11
+0.92 (+1.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners82.35%
Inst Owner Change-2.34%
Ins Owners5.09%
Ins Owner Change9.95%
Market Cap15.35B
Analysts74
Price Target68.54 (22.15%)
Short Float %0.85%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
Dividend Growth(5Y)8.93%
DP69.91%
Div Incr Years13
Div Non Decr Years13
Ex-Date
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)3.07%
PT rev (3m)11.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.86%
EPS NY rev (1m)-1.26%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.89%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.85 | ||
| Fwd PE | 9.02 | ||
| P/S | 1.14 | ||
| P/FCF | 2.06 | ||
| P/OCF | 2.02 | ||
| P/B | 1.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.88 |
EPS(TTM)4.05
EY7.22%
EPS(NY)6.22
Fwd EY11.09%
FCF(TTM)27.17
FCFY48.43%
OCF(TTM)27.71
OCFY49.39%
SpS49.42
BVpS29.54
TBVpS-12.32
PEG (NY)0.46
PEG (5Y)2.53
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
WACC8.09%
ROIC/WACC0.12
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 5YN/A
Revenue 1Y (TTM)23.78%
Revenue growth 3Y2.93%
Revenue growth 5Y9.13%
Sales Q2Q%29.7%
Revenue Next Year18.08%
Revenue Next 2Y13.32%
Revenue Next 3Y9.39%
Revenue Next 5YN/A
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%