Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, title insurer Fidelity National Financial (NYSE: FNF ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Fidelity's business and see what CAPS investors are saying about the stock right now.
|Market Cap||$3.09 billion|
|Industry||Surety and title insurance|
|Management||CEO/COO George Scanlon (since 2010)
CFO Anthony Park (since 2005)
|Return on Equity (Average, Past 3 Years)||4.3%|
|Cash/Debt||$553.6 million / $961.4 million|
|Competitors||First American Financial (NYSE: FAF )
Old Republic International (NYSE: ORI )
Stewart Information Services (NYSE: STC )
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Near monopoly, free cash flow machine and grossly undervalued. Fundamentals stable to improving. ... Stock is worth over $20 and management aggressive buy backs signaling their own stock is best use of free cash.
Over the next five years, Fidelity is even expected to grow its bottom line at a solid rate of 11.5% annually. That's faster than direct rivals First American (9%), Old Republic (8%), and Stewart Information (5%).
CAPS member NeuroNerd elaborates on the bull case:
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.
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