+ Watch FNF
on My Watchlist
The Company provides title insurance, specialty insurance, and claims management services.
Staying power is a plus.
Long-term play on the housing recovery with the special sauce of the private equity portfolio and the nice dividend. This should be a nice gainer over the long-term.
Dominant player, has gained market share post real estate meltdown
Market leader that should appreciate as housing sales improve.
FNF has been unfairly penalized in the market. A standout in the industry.
Trading at an 8-9% discount to book value, trailing P/E<9, and forward P/E <12 with a $5 billion cash pile and less than $1 billion in debt. There's been a lot of negative sentiment hitting this stock b/c of concerns about its exposure to the housing market via the title insurance business and a recent dividend cut. However, the dividend cut is being used to fund share buybacks of the highly undervalued stock, and in my opinion is a better use of the capital. When the housing market eventually recovers, this sucker is going to soar, and in the meanwhile I'll kick up my heels and collect the still substantial 3.5% dividend.
Great Dividend. Housing Market can't be down forever...
Inside Value pick
Cheap, still pretty small. Not much wall street coverage. Pays a good dividend. Yielding about 5%. Made a smart move by buying out a competitor.
Near-monopolist in title insurance that took a recent beating in stock price and is paying steady dividends.
Once the housing market stabilizes and takes a turn upwards, maybe in 2011, this financially strong company should start a steady appreciation. Take the good dividend while you wait.
You have to have title insurance. The real estate industry doesnt function without it. FNF is now the largest and has the LandAmerica acquisition in its rear view mirror. Trading below book value, and at least on the surface committed to a dividend, they have positioned their balance sheet and cost structure to rebound well when the real estate industry stabilises. Today's price gives us an opportunity to set a low cost basis and collect the divis while we wait. Either nothing recovers and all our stocks are worthless, or title insurance and the real estate will eventually recover (again) and this will look like a very astute investment.
Gained market share from Land America will boost business, title insurance is necessary.
Almost a monopoly
Largest title insurance company after acquisition. Undervalued and a nice dividend.
I believe FNF to be extremely undervalued. My DCF model gives it an intrinsic value of appr. $30 per share. I believe the crisis is over for the best title insurers like FNF and although they may not grow sales back to pre-housing bust levels in the near future I do see FNF growing sales back to the $7 Billion mark by FY2015. Of course free cash flow will also go along for the ride. I think that this stock is a buy anywhere under $22 per share, so at its current price of $14 it really is a steal.Also of note; in the past 9 months, FNF has gained 0.8% market share on its closest rival FAF and currently has 46.8% of the title insurance market. It is the first time this has occured in over 20 years and may be a sign that the company has adapted much better than its rival to the recent changes in the industry.Another interesting metric is revenue per employee. FNF generates twice as much sales per employee than FAF.I strongly recommend buying FNF.
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