FNF

Fidelity National Financial Inc.

Finance/Real Estate


Presented:01/15/2014
Price:$31.67
Cap:$8.64B
Current Price:$61.78
Cap:$16.89B

Presented

Date01/15/2014
Price$31.67
Market Cap$8.64B
Ent Value$9.52B
P/E Ratio17.51x
Book Value$21.45
Div Yield2.1%
Shares O/S272.70M
Ave Daily Vol3,790,000
Short Int8.45%

Current

Price$61.78
Market Cap$16.89B
Fidelity National Financial, Inc. provides title insurance, mortgage services, and diversified services in the United States. The company provides title insurance, escrow, and other title related services, including collection and trust activities, trustee’s sales guarantees, recordings, and reconveyances, as well as home warranty insurance to various customers in the residential and commercial market sectors of the real estate industry. It is also involved in the design, manufacture, remanufacture, market, and distribution of aftermarket and original equipment electrical components for automobiles, light trucks, heavy-duty trucks, and other vehicles worldwide. In addition, the company owns and operates restaurants comprising the O'Charley's, Ninety Nine Restaurants, Max & Erma's, Village Inn, Bakers Square, and Stoney River Legendary Steaks concepts in the United States. Fidelity National Financial, Inc. is headquartered in Jacksonville, Florida.

Highlights

The presenter has been long shares of Fidelity National Financial (FNF) for some time, and believes the timing is interesting to add to the position. The title insurance business is a “great business” that has consistently generated a 20-30% ROE over the past 20 years because anyone who buys a home or refinances needs to pay for it. He expects a somewhat negative headwind if rates rise, but as the employment picture improves more people will be willing to buy homes and FNF will generate better margins on lower volume. If his assumptions are accurate, the company should be able to earn upwards of $3.50-$4.00 per-share by 2016.

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Idea Discussion

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