FAIRFAX FINL HLDGS LTD - FFHCN 6.3 PERP (FFH-PR-D.CA) Stock Fundamental Analysis
TSX:FFH-PR-D - Toronto Stock Exchange - CA3039016074 - Currency: CAD
FFH-PR-D gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the Insurance industry. FFH-PR-D has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on FFH-PR-D.
1. Profitability
1.1 Basic Checks
FFH-PR-D had positive earnings in the past year.
In the past year FFH-PR-D had a positive cash flow from operations.
In the past 5 years FFH-PR-D has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: FFH-PR-D reported negative operating cash flow in multiple years.
1.2 Ratios
FFH-PR-D has a Return On Assets of 4.35%. This is amongst the best in the industry. FFH-PR-D outperforms 83.95% of its industry peers.
The Return On Equity of FFH-PR-D (17.44%) is better than 81.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.10%, FFH-PR-D is in the better half of the industry, outperforming 72.84% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FFH-PR-D is in line with the industry average of 2.73%.
The 3 year average ROIC (3.84%) for FFH-PR-D is below the current ROIC(5.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 17.44% | ||
| ROIC | 5.1% |
ROA(3y)4.27%
ROA(5y)3.16%
ROE(3y)18.93%
ROE(5y)14.33%
ROIC(3y)3.84%
ROIC(5y)2.69%
1.3 Margins
FFH-PR-D's Profit Margin of 10.40% is in line compared to the rest of the industry. FFH-PR-D outperforms 58.02% of its industry peers.
In the last couple of years the Profit Margin of FFH-PR-D has grown nicely.
Looking at the Operating Margin, with a value of 13.99%, FFH-PR-D is doing worse than 76.54% of the companies in the same industry.
In the last couple of years the Operating Margin of FFH-PR-D has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.99% | ||
| PM (TTM) | 10.4% | ||
| GM | N/A |
OM growth 3Y140.87%
OM growth 5Y73.86%
PM growth 3Y138.85%
PM growth 5Y43.78%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FFH-PR-D is still creating some value.
Compared to 1 year ago, FFH-PR-D has less shares outstanding
FFH-PR-D has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FFH-PR-D has an improved debt to assets ratio.
2.2 Solvency
FFH-PR-D has a debt to FCF ratio of 2.55. This is a good value and a sign of high solvency as FFH-PR-D would need 2.55 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.55, FFH-PR-D is in line with its industry, outperforming 40.74% of the companies in the same industry.
FFH-PR-D has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.42, FFH-PR-D is doing worse than 69.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.55 | ||
| Altman-Z | N/A |
ROIC/WACC1.16
WACC4.4%
2.3 Liquidity
A Current Ratio of 0.52 indicates that FFH-PR-D may have some problems paying its short term obligations.
With an excellent Current ratio value of 0.52, FFH-PR-D belongs to the best of the industry, outperforming 80.25% of the companies in the same industry.
FFH-PR-D has a Quick Ratio of 0.52. This is a bad value and indicates that FFH-PR-D is not financially healthy enough and could expect problems in meeting its short term obligations.
FFH-PR-D's Quick ratio of 0.52 is amongst the best of the industry. FFH-PR-D outperforms 80.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
FFH-PR-D shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.75%.
Measured over the past years, FFH-PR-D shows a very strong growth in Earnings Per Share. The EPS has been growing by 73.99% on average per year.
The Revenue has grown by 13.03% in the past year. This is quite good.
Measured over the past years, FFH-PR-D shows a quite strong growth in Revenue. The Revenue has been growing by 16.32% on average per year.
EPS 1Y (TTM)-17.75%
EPS 3Y452.07%
EPS 5Y73.99%
EPS Q2Q%0.85%
Revenue 1Y (TTM)13.03%
Revenue growth 3Y22.25%
Revenue growth 5Y16.32%
Sales Q2Q%-0.77%
3.2 Future
The Earnings Per Share is expected to decrease by -9.58% on average over the next years.
Based on estimates for the next years, FFH-PR-D will show a small growth in Revenue. The Revenue will grow by 4.32% on average per year.
EPS Next Y-11.44%
EPS Next 2Y-4.85%
EPS Next 3Y0%
EPS Next 5Y-9.58%
Revenue Next Year-21.98%
Revenue Next 2Y-7.64%
Revenue Next 3Y-3.42%
Revenue Next 5Y4.32%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 0.11, the valuation of FFH-PR-D can be described as very cheap.
FFH-PR-D's Price/Earnings ratio is rather cheap when compared to the industry. FFH-PR-D is cheaper than 86.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.86. FFH-PR-D is valued rather cheaply when compared to this.
FFH-PR-D is valuated cheaply with a Price/Forward Earnings ratio of 0.11.
90.12% of the companies in the same industry are more expensive than FFH-PR-D, based on the Price/Forward Earnings ratio.
FFH-PR-D is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.11 | ||
| Fwd PE | 0.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FFH-PR-D is valued cheaply inside the industry as 90.12% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FFH-PR-D is valued a bit cheaper than 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.14 | ||
| EV/EBITDA | 1.67 |
4.3 Compensation for Growth
FFH-PR-D has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y-4.85%
EPS Next 3Y0%
5. Dividend
5.1 Amount
FFH-PR-D has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 5.01, FFH-PR-D's dividend is way lower than its industry peers. On top of this 92.59% of the companies listed in the same industry pay a better dividend than FFH-PR-D!
With a Dividend Yield of 0.76, FFH-PR-D pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of FFH-PR-D has a limited annual growth rate of 1.33%.
FFH-PR-D has been paying a dividend for at least 10 years, so it has a reliable track record.
FFH-PR-D has decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.33%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
10.32% of the earnings are spent on dividend by FFH-PR-D. This is a low number and sustainable payout ratio.
DP10.32%
EPS Next 2Y-4.85%
EPS Next 3Y0%
FAIRFAX FINL HLDGS LTD - FFHCN 6.3 PERP
TSX:FFH-PR-D (12/24/2024, 7:00:00 PM)
24.97
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners37.87%
Inst Owner ChangeN/A
Ins Owners3.94%
Ins Owner ChangeN/A
Market Cap766.58M
Analysts78.18
Price Target28.08 (12.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend12.31
Dividend Growth(5Y)1.33%
DP10.32%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.32%
Min EPS beat(2)17.51%
Max EPS beat(2)23.14%
EPS beat(4)3
Avg EPS beat(4)3.79%
Min EPS beat(4)-25.87%
Max EPS beat(4)23.14%
EPS beat(8)6
Avg EPS beat(8)10.63%
EPS beat(12)10
Avg EPS beat(12)133.03%
EPS beat(16)14
Avg EPS beat(16)134.4%
Revenue beat(2)1
Avg Revenue beat(2)15.56%
Min Revenue beat(2)-8.38%
Max Revenue beat(2)39.5%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.38%
PT rev (3m)9.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.31%
EPS NY rev (1m)0%
EPS NY rev (3m)3.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.11 | ||
| Fwd PE | 0.11 | ||
| P/S | 0.01 | ||
| P/FCF | 0.14 | ||
| P/OCF | 0.13 | ||
| P/B | 0.02 | ||
| P/tB | 0.03 | ||
| EV/EBITDA | 1.67 |
EPS(TTM)235.61
EY943.57%
EPS(NY)226.14
Fwd EY905.66%
FCF(TTM)179.06
FCFY717.1%
OCF(TTM)199.32
OCFY798.22%
SpS1806.49
BVpS1077.34
TBVpS778.02
PEG (NY)N/A
PEG (5Y)0
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | 17.44% | ||
| ROCE | 6.22% | ||
| ROIC | 5.1% | ||
| ROICexc | 5.1% | ||
| ROICexgc | 7.43% | ||
| OM | 13.99% | ||
| PM (TTM) | 10.4% | ||
| GM | N/A | ||
| FCFM | 9.91% |
ROA(3y)4.27%
ROA(5y)3.16%
ROE(3y)18.93%
ROE(5y)14.33%
ROIC(3y)3.84%
ROIC(5y)2.69%
ROICexc(3y)4%
ROICexc(5y)2.8%
ROICexgc(3y)5.44%
ROICexgc(5y)3.82%
ROCE(3y)4.68%
ROCE(5y)3.28%
ROICexcg growth 3Y166.79%
ROICexcg growth 5Y86.21%
ROICexc growth 3Y172.59%
ROICexc growth 5Y87.11%
OM growth 3Y140.87%
OM growth 5Y73.86%
PM growth 3Y138.85%
PM growth 5Y43.78%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.55 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 56.87% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.14% | ||
| Profit Quality | 95.33% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | N/A |
F-Score5
WACC4.4%
ROIC/WACC1.16
Cap/Depr(3y)52.42%
Cap/Depr(5y)49.17%
Cap/Sales(3y)1.42%
Cap/Sales(5y)1.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.75%
EPS 3Y452.07%
EPS 5Y73.99%
EPS Q2Q%0.85%
EPS Next Y-11.44%
EPS Next 2Y-4.85%
EPS Next 3Y0%
EPS Next 5Y-9.58%
Revenue 1Y (TTM)13.03%
Revenue growth 3Y22.25%
Revenue growth 5Y16.32%
Sales Q2Q%-0.77%
Revenue Next Year-21.98%
Revenue Next 2Y-7.64%
Revenue Next 3Y-3.42%
Revenue Next 5Y4.32%
EBIT growth 1Y1.95%
EBIT growth 3Y194.47%
EBIT growth 5Y102.24%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y192.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y213.42%
OCF growth 3YN/A
OCF growth 5YN/A