FAF · NYSE · STOCK
First American Financial (FAF) Stock Analysis
$69.27
52W $56.20 – $79.87
64/100
$7.07B
9.6
1.23
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is FAF Bullish or Bearish?
Bullish.
Innellis AI committee rates First American Financial Corporation (FAF) Buy with a composite score of 64/100
, based on 6 analysts with 67% agreement.
Last updated September 22, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +10.84 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -9.16 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Macro Analyst sees a compelling case — vix regime is low -- calm backdrop supports risk-taking. Risk Analyst remains cautious — current ratio of 0.07 is tight -- limited short-term liquidity cushion. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- P/E of 9.5 is inexpensive for the broad market — Value
- Price-to-book of 1.1x is a discount to asset value — Value
- Dividend yield of 3.6% pays you to wait — Value
- EPS growing 299.0% YoY — Growth
- 5 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
Bear Case
- MACD histogram negative -- bearish momentum — Technical
- Current ratio of 0.07 is tight -- limited short-term liquidity cushion — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of September 22, 2026
Overall Committee Score
64/100
Agreement
67%
Analysts
6
Conviction
Contested
Sector Rank
Top 39%
of 211 Financial Services peers
Value Analyst
bullish
77
/ 100 · Moderate confidence
Classic value case: cheap on multiples with earnings power to back it up
+ P/E of 9.5 is inexpensive for the broad market
Growth Analyst
bullish
79
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ EPS growing 299.0% YoY
Technical Analyst
neutral
48
/ 100 · High confidence
Mixed or range-bound price action
− MACD histogram negative -- bearish momentum
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Current ratio of 0.07 is tight -- limited short-term liquidity cushion
Macro Analyst
bullish
80
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ VIX regime is low -- calm backdrop supports risk-taking
News Analyst
bullish
66
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.27 across 15 articles, 14d)
Portfolio Manager
neutral
55
/ 100 · Moderate confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− 4 existing position pair(s) are highly correlated already
Investment Thesis Evolution
Committee score moved marginally from 61.8 to 64.2.
- New bearish signals: 1 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 2 appeared.
- Bearish pressure eased: 3 signal(s) disappeared.
Analyst-level changes:
- Macro Analyst: score 65->80 (+15); +1 bullish signal(s).
- News Analyst: +1 bullish signal(s).
- Portfolio Manager: score 45->55 (+10); +1 bearish signal(s).
Comparing 2026-09-21 to 2026-09-22 (1 day apart).
Technical Analysis
RSI (14)
32.4
Neutral
MACD Histogram
-0.402
Bearish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Mixed
Support
$65.63
Resistance
$69.71
Bollinger %B
0.01
Inside Bands
Price vs Moving Averages
EMA 9
$71.25
Below
EMA 21
$72.13
Below
EMA 50
$72.04
Below
EMA 200
$68.27
Above
Fundamental Analysis
Valuation
100
Growth
95
Profitability
71
Financial Health
100
Cash Flow
70
Valuation
P/E Ratio
9.6×
P/B Ratio
1.27×
PEG Ratio
0.03
Dividend Yield
3.18%
52W High
$79.87
52W Low
$56.20
Quality & Growth
ROE
1130.7%
ROA
383.2%
Gross Margin
7681.0%
Operating Margin
1277.2%
Revenue Growth YoY
—
Debt / Equity
0.31
AI Fundamental Assessment
P/E ratio of 9.6 (inexpensive relative to a 15-40x range); Price-to-book of 1.3x; PEG ratio of 0.0 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 11.3%; Return on assets of 3.8%; Net margin of 17.8%; Gross margin of 76.8%; Current ratio of 55.46 (healthy short-term liquidity); Debt-to-equity of 0.31; Free cash flow per share is positive (8.10); Most recent quarter beat estimates by 12.9%; 5 consecutive earnings beats; EPS growth accelerating (-33.2% -> +56.4% QoQ); Average YoY EPS growth of 36.0%; Analyst estimates rising over recent quarters
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