First American Financial Stock

First American Financial ROCE

The Return on Capital Employed (ROCE) of First American Financial (FAF) as of Aug 9, 2026 is 17.88 %. In the previous year, Return on Capital Employed (ROCE) was 9.28 % — a change of 92.66% (higher).

ROCE

17.88 %

YoY

92.66%

Last updated:

In 2026, First American Financial's return on capital employed (ROCE) was 17.88 %, a 92.66% increase from the 9.28 % ROCE in the previous year.

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First American Financial Stock analysis

What does First American Financial do? The First American Financial Corporation is a leading company in the insurance and real estate industry, offering a wide range of insurance and financial services to its customers for over 130 years. First American Financial is one of the most popular companies on Eulerpool.

ROCE Details

Unraveling First American Financial's Return on Capital Employed (ROCE)

First American Financial's Return on Capital Employed (ROCE) is a financial metric that measures the company's profitability and efficiency with respect to the capital employed. It is calculated by dividing earnings before interest and tax (EBIT) by the employed capital. A higher ROCE indicates that the company is effectively utilizing its capital to generate profits.

Year-to-Year Comparison

Analyzing First American Financial's ROCE annually provides valuable insights into its efficiency in using its capital to generate profits. An increasing ROCE indicates improved profitability and operational efficiency, whereas a decrease might signal potential issues in capital utilization or business operations.

Impact on Investments

First American Financial's ROCE is a critical factor for investors and analysts for evaluating the company’s efficiency and profitability. A higher ROCE can make the company an attractive investment, as it often signifies that the firm is generating adequate profits from its employed capital.

Interpreting ROCE Fluctuations

Changes in First American Financial’s ROCE are attributed to variations in EBIT or the capital employed. These fluctuations offer insights into the company’s operational efficiency, financial performance, and strategic financial management, assisting investors in making informed investment decisions.

Frequently Asked Questions about First American Financial stock

Return on Capital Employed (ROCE) of First American Financial is 17.88 % in 2026.

Return on Capital Employed (ROCE) of First American Financial changed from 9.28 % to 17.88 %, representing a 92.66% change. The value is higher than the previous year.

On Eulerpool you can find the complete historical development of Return on Capital Employed (ROCE) First American Financial since 2006 – with annual values, charts, and detailed analysis.

ROCE is a profitability measure and stands for Return on Capital Employed or the return on invested capital. The measure shows the ratio of operating profit to the interest-bearing capital employed. The higher the return on capital employed, the more profitable a company operates and the higher the important free cash flow. The free cash flow refers to the portion of profits that is not needed for expanding the company at the end of a period, but is available to shareholders.

A 'good' varies by industry and company stage. On Eulerpool, you can compare Return on Capital Employed (ROCE)'s First American Financial with sector peers and the industry average to assess whether it is attractive.

To evaluate Return on Capital Employed (ROCE)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for Return on Capital Employed (ROCE).

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Profitability — First American Financial

All Key Metrics — First American Financial