Fidelity National Financial (FNF) AI Stock Analysis

• Market Cap: $14.94B
• Dividend Yield: 3.64%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.76
• Revenue Growth: 7.25%
• EPS Growth: 17.55%
• Country: US
• Employees: 23,533
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 1.16
• Shares Outstanding: 271,722,560
• 10 Day Avg. Volume: 1,001,887
• 30 Day Avg. Volume: 1,151,402
• PEG Ratio: 0.08
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 1.11
• P/FCF Ratio: 2.28
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 2.06
• Enterprise Value/Ebitda: 8.54
• 1Y Price Target: $66.50
• Price Target Upside: 20.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 73 Outperform
• Price Target: $65.00 ▲(18.22% Upside)

Fidelity National Financial's overall stock score reflects its strong financial performance and solid cash flow management, which are the most significant factors. The technical analysis indicates a cautious short-term outlook, while the valuation suggests the stock is fairly priced. The earnings call provided mixed signals, with strong segment performance but increased expenses impacting profitability.

Positive Factors

Partnership with Clear Secure

This partnership enhances FNF's security in real estate transactions, addressing a critical industry issue and potentially reducing fraud-related losses, thus strengthening its market position and trust with clients.

Cash Flow Management

Strong cash flow management ensures FNF can fund operations, invest in growth opportunities, and return capital to shareholders, supporting long-term financial stability and strategic flexibility.

Commercial Revenue Growth

Significant growth in commercial revenue indicates FNF's ability to capture market share and expand its service offerings, contributing to sustained revenue growth and competitive advantage.

Negative Factors

Increased Operating Expenses

Rising operating expenses can pressure profit margins, potentially reducing profitability and limiting the company's ability to invest in growth initiatives, affecting long-term financial health.

Decline in Adjusted Net Earnings

A decline in adjusted net earnings reflects challenges in maintaining profitability, which could impact investor confidence and the company's ability to fund future growth and shareholder returns.

Reduced Title Margin

A decrease in title margins suggests increased cost pressures and competitive challenges, potentially affecting the company's core profitability and its ability to maintain pricing power in the market.

Fidelity National Financial Business Overview & Revenue Model

Company Description

Fidelity 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 Money

Fidelity National Financial generates revenue primarily through its title insurance premiums, which are collected when real estate transactions close. The company earns fees from various real estate services, including escrow and closing services, as well as from its mortgage technology solutions. Additionally, FNF generates income from its ownership in strategic investments and partnerships, particularly in technology and data solutions that enhance the efficiency of real estate transactions. Key revenue streams include title insurance sales, service fees, and technology licensing agreements. The company's strong position in the title insurance market, bolstered by its extensive network of agents and partnerships with real estate professionals, contributes significantly to its earnings.

Fidelity National Financial Financial Statement Overview

Summary

Fidelity National Financial exhibits a strong financial position with consistent revenue growth and solid cash flow generation. Profitability margins have faced slight pressure, but the company maintains a healthy balance sheet with improved leverage ratios.

Income Statement

Fidelity National Financial shows a solid performance with a consistent revenue growth rate of 3.39% in the TTM period. The gross profit margin remains strong at 74.98%, indicating efficient cost management. However, the net profit margin has slightly decreased to 7.91% from 9.26% in the previous year, suggesting some pressure on profitability. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.50 in the TTM period, indicating a balanced approach to leveraging. Return on equity is strong at 13.24%, showcasing effective use of shareholder funds. However, the equity ratio is relatively low, which could pose a risk if asset values fluctuate.

Cash Flow

Fidelity National Financial demonstrates robust cash flow management with a free cash flow growth rate of 8.66% in the TTM period. The operating cash flow to net income ratio is exceptionally high, indicating strong cash generation relative to earnings. The free cash flow to net income ratio remains stable, underscoring efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.61B	13.71B	11.79B	11.56B	15.64B	10.78B
Gross Profit	10.21B	13.71B	11.79B	11.61B	15.65B	9.02B
EBITDA	2.46B	2.69B	1.46B	2.34B	3.84B	2.17B
Net Income	1.08B	1.27B	517.00M	1.29B	2.80B	1.43B
Balance Sheet
Total Assets	102.33B	95.37B	80.61B	57.11B	60.69B	50.45B
Cash, Cash Equivalents and Short-Term Investments	71.29B	31.05B	26.56B	37.73B	36.36B	30.80B
Total Debt	4.40B	4.71B	4.28B	3.66B	3.51B	3.08B
Total Liabilities	93.51B	86.84B	73.15B	59.61B	51.23B	42.06B
Stockholders Equity	8.82B	7.75B	6.91B	6.12B	9.41B	8.35B
Cash Flow
Free Cash Flow	6.73B	6.67B	6.35B	4.22B	3.96B	1.47B
Operating Cash Flow	6.87B	6.82B	6.48B	4.36B	4.09B	1.58B
Investing Cash Flow	-9.11B	-7.86B	-9.09B	-10.52B	-7.45B	-2.33B
Financing Cash Flow	619.00M	1.76B	3.09B	4.09B	5.00B	2.10B

Fidelity National Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 54.98 is below the 20-day moving average (MA) of 58.71, below the 50-day MA of 58.89, and below the 200-day MA of 57.86, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 30.61 is Neutral, neither overbought nor oversold. The STOCH value of 3.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FNF.

Fidelity National Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIZ	77 Outperform	$10.97B	15.74	13.65%	1.47%	6.42%	-7.74%
FNF	73 Outperform	$14.94B	13.94	14.20%	3.64%	7.25%	17.55%
MTG	72 Outperform	$6.16B	8.76	14.85%	2.02%	3.26%	12.70%
ESNT	70 Outperform	$5.83B	8.63	12.94%	2.04%	4.79%	-0.76%
RYAN	68 Neutral	$14.56B	2,400.43	9.44%	0.85%	22.21%	-30.67%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FAF	49 Neutral	$6.04B	32.77	3.80%	3.66%	14.28%	-2.87%

Fidelity National Financial Corporate Events

Fidelity National Financial Holds Annual Shareholder Meeting

On April 14, 2025, Fidelity National Financial held its Annual Meeting where shareholders voted on several key proposals. The meeting included the election of three Class II directors, approval of the company’s redomestication from Delaware to Nevada, a shareholder proposal for annual director elections, a non-binding advisory resolution on executive compensation, and the ratification of Ernst & Young LLP as the independent registered public accounting firm for 2025.