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Fidelity National Financial (FNF)
NYSE:FNF
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Fidelity National Financial
(NYSE:FNF)
55Neutral
Positive Factors
Earnings outlook
The positive revision to 2025 was driven by a combination of management's commentary on Title margins and the compounding effects of higher F&G AUM resulting from strong product sales this quarter.
Interest rates
Recent movement in interest rates has raised optimism that mortgage activity could accelerate in the coming months.
Sales growth
F&G results were generally strong, with record AUM on strong sales growth in both their retail and institutional channels.
Negative Factors
Earnings performance
Adjusted EPS for FNF of $1.24 was below consensus of $1.32 and DBe of $1.29 with the miss driven by lower closed title orders.
Order activity
Title open orders were down 7% y/y for June, pointing to slowing activity.
Title volume
FNF posted 2Q24 results that were generally in-line with consistent on a combination of strong growth in FG, and soft volumes in title, but with resilient margins.
Fidelity National Financial (FNF) vs. S&P 500 (SPY)
Market Cap
$15.85B
Dividend Yield3.39%
Average Volume (3M)1.65M
Price to Earnings (P/E)14.3
Beta (1Y)0.72
Revenue Growth4.40%
EPS Growth33.32%
CountryUS
Employees23,533
SectorFinancial
Sector Strength87
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)0.78
Shares Outstanding274,639,800
10 Day Avg. Volume1,390,073
30 Day Avg. Volume1,653,108
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)2.04
Price to Sales (P/S)0.00
P/FCF Ratio2.34
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit1.51
Enterprise Value/Ebitda3.39
Forecast
1Y Price Target
$70.33Price Target Upside21.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Fidelity National Financial Business Overview & Revenue Model
Company DescriptionFidelity National Financial, Inc., together with its subsidiaries, provides various insurance products in the United States. The company operates through Title, F&G, and Corporate and Other segments. It offers title insurance, escrow, and other title related services, including trust activities, trustee sales guarantees, recordings and reconveyances, and home warranty insurance. The company also provides technology and transaction services to the real estate and mortgage industries; and mortgage transaction services, including title-related services and facilitation of production and management of mortgage loans. In addition, it offers annuity and life insurance products, such as deferred annuities that include fixed indexed, fixed rate, and immediate annuities, as well as indexed universal life insurance products. Further, the company engages in the real estate brokerage business. Fidelity National Financial, Inc. was founded in 1847 and is headquartered in Jacksonville, Florida.
How the Company Makes MoneyFNF primarily generates revenue through the sale of title insurance policies, which protect lenders and property owners against defects in title that may arise during real estate transactions. Title insurance premiums are the company's largest revenue stream, driven by the volume of real estate transactions and property values. In addition to title insurance, FNF earns revenue from escrow and closing services, collecting fees for managing the transaction process and ensuring all necessary documents and funds are properly handled. The company also benefits from its investments in technology and transaction services, which provide additional revenue streams through partnerships and service offerings aimed at modernizing and securing the real estate transaction process.
Fidelity National Financial Financial Statement Overview
Summary
Fidelity National Financial shows stable financial positioning with strong gross margins and moderate leverage. However, challenges persist with declining operational margins and negative cash flows, indicating areas for improvement. Overall, the financial performance reflects the need to address operational inefficiencies and enhance cash flow management.Income Statement
Fidelity National Financial shows a mixed performance in its income statement. The gross profit margin for 2023 was strong, indicating efficient cost management. However, the revenue growth rate from 2022 to 2023 was modest at around 2.0%. The net profit margin for 2023 was approximately 4.4%, reflecting moderate profitability. The declining EBIT and EBITDA margins from previous years suggest pressure on operational efficiency.55
Neutral
Balance Sheet
The balance sheet presents a stable financial position with a debt-to-equity ratio of 0.62 in 2023, indicating moderate leverage. The company's equity ratio was 8.6%, suggesting a lower proportion of equity in the capital structure. Return on Equity (ROE) for 2023 was approximately 7.5%, which is decent but shows room for improvement. The increasing total assets and stockholders' equity suggest strengthening financial stability.60
Neutral
Cash Flow
Cash flow analysis reveals some concerns, particularly with the operating cash flow turning negative in 2024. The free cash flow growth rate was negative from 2023 to 2024, indicating potential cash management issues. The operating cash flow to net income ratio was negative in 2024, suggesting operational challenges. Despite these issues, previous years showed strong free cash flow to net income ratios.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 13.36B | 11.79B | 11.56B | 15.64B | 10.78B | Gross Profit |
| 13.36B | 10.23B | 9.84B | 13.71B | 9.02B | EBIT |
| 1.98B | 518.00M | 1.65B | 3.13B | 1.75B | EBITDA |
| 2.58B | 1.46B | 2.34B | 3.84B | 2.17B | Net Income Common Stockholders |
| 1.27B | 517.00M | 1.29B | 2.80B | 1.43B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 31.05B | 26.56B | 37.73B | 36.36B | 30.80B | Total Assets |
| 95.37B | 80.61B | 57.11B | 60.69B | 50.45B | Total Debt |
| 4.71B | 4.28B | 3.66B | 3.51B | 3.08B | Net Debt |
| 1.30B | 1.78B | 1.61B | -370.00M | 627.00M | Total Liabilities |
| 86.84B | 73.15B | 59.61B | 51.23B | 42.06B | Stockholders Equity |
| 7.75B | 6.91B | -2.86B | 9.41B | 8.35B |
| Cash Flow | Free Cash Flow | |||
| 6.67B | 6.35B | 4.22B | 3.96B | 1.47B | Operating Cash Flow |
| 7.44B | 6.48B | 4.36B | 4.09B | 1.58B | Investing Cash Flow |
| -7.86B | -9.09B | -10.52B | -7.45B | -2.33B | Financing Cash Flow |
| 1.76B | 3.09B | 4.09B | 5.00B | 2.10B |
Fidelity National Financial Technical Analysis
Negative
57.73
Price Trends
62.70
Negative
60.00
Negative
59.18
Negative
Market Momentum
-0.51
Positive
34.76
Neutral
3.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNF, the sentiment is Negative. The current price of 57.73 is below the 20-day moving average (MA) of 62.24, below the 50-day MA of 62.70, and below the 200-day MA of 59.18, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 34.76 is Neutral, neither overbought nor oversold. The STOCH value of 3.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FNF.
Fidelity National Financial Risk Analysis
Fidelity National Financial disclosed 9 risk factors in its most recent earnings report. Fidelity National Financial reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fidelity National Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.31B | 8.84 | 15.12% | 1.93% | 4.64% | 15.36% | |
78 Outperform | $6.05B | 8.73 | 13.29% | 1.96% | 9.87% | 3.41% | |
78 Outperform | $10.25B | 15.75 | 13.20% | 1.50% | 6.18% | -10.34% | |
68 Neutral | $18.14B | 9,341.89 | 9.23% | 0.65% | 21.56% | -21.27% | |
66 Neutral | $6.23B | 39.99 | 3.23% | 3.59% | 0.96% | -27.04% | |
64 Neutral | $12.73B | 9.82 | 7.91% | 17015.08% | 12.18% | -5.69% | |
55 Neutral | $15.85B | 14.26 | 14.72% | 3.39% | 4.40% | 33.32% |
* Financial Sector Average
Performance Comparison
FNF
Fidelity National Financial
57.32
7.09
14.12%
AIZ
Assurant
202.45
27.78
15.90%
FAF
First American Financial
60.59
6.32
11.65%
MTG
MGIC Investment
26.59
6.09
29.71%
ESNT
Essent Group
59.47
4.41
8.01%
RYAN
Ryan Specialty Group
68.16
14.86
27.88%
Fidelity National Financial Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -10.26%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in the Title segment with increased margins and commercial revenue growth, as well as growth in F&G's assets under management. However, there were notable declines in net earnings and F&G's gross sales, alongside increased title claims paid. The sentiment is balanced, reflecting both positive achievements and challenges.Q1-2025 Updates
Positive Updates
Strong Title Segment Performance
The Title segment delivered an adjusted pretax title earnings of $211 million and achieved an industry-leading adjusted pretax title margin of 11.7% for the first quarter, an increase of 100 basis points over the prior year quarter.
Commercial Revenue Growth
Direct commercial revenue reached $293 million in the first quarter, up 23% over the first quarter of 2024. National daily orders opened were up 19% over the first quarter of 2024.
F&G Assets Under Management Growth
F&G's assets under management reached $67.4 billion at March 31, up 16% over the prior year quarter.
Continued Investment in Technology and AI
Investments in technology have led to operational efficiencies, with a focus on AI to increase efficiency and productivity.
Share Repurchase Activity
During the first quarter, FNF repurchased 390,000 shares at an average price of $63.42 per share for a total of $25 million.
Negative Updates
Net Earnings Decline
First quarter net earnings were $83 million, including net recognized losses of $287 million, compared to net earnings of $248 million in the first quarter of 2024.
F&G Gross Sales Decrease
F&G's gross sales were $2.9 billion, down 17% compared with $3.5 billion in the first quarter of 2024, primarily due to lower MYGA sales.
Title Claims Paid Increase
Title claims paid were $65 million, $11 million higher than the provision of $54 million for the first quarter.
Company Guidance
During FNF's First Quarter 2025 Earnings Call, the company reported robust financial performance, with notable achievements across various segments. The Title segment delivered an adjusted pretax title earnings of $211 million and an industry-leading adjusted pretax title margin of 11.7%, marking a 100 basis point increase from the prior year's 10.7%. Total revenue for the quarter reached $2.7 billion, or $3 billion excluding net recognized gains and losses, consistent with the previous year. F&G's AUM before flow reinsurance rose to $67.4 billion, up 16% year-over-year, driven by strong indexed annuity sales. Adjusted net earnings for the company were $213 million, or $0.78 per diluted share, slightly up from $206 million, or $0.76 per share, in Q1 2024. The company also highlighted its strategic capital allocation, including share repurchases and investments in technology and M&A, while maintaining a strong balance sheet with a debt-to-capitalization ratio in line with their long-term target.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.