FAIRFAX FINL HLDGS LTD - FFHCN 3.327 PERP (FFH-PR-I.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FFH-PR-I - CA3039018476
24.99 CAD
0 (0%)
Overall FFH-PR-I gets a fundamental rating of 5 out of 10. We evaluated FFH-PR-I against 80 industry peers in the Insurance industry. FFH-PR-I has a medium profitability rating, but doesn't score so well on its financial health evaluation. FFH-PR-I is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year FFH-PR-I was profitable.
- FFH-PR-I had a positive operating cash flow in the past year.
- In the past 5 years FFH-PR-I has always been profitable.
- In multiple years FFH-PR-I reported negative operating cash flow during the last 5 years.
1.2 Ratios
- FFH-PR-I's Return On Assets of 4.41% is amongst the best of the industry. FFH-PR-I outperforms 80.25% of its industry peers.
- The Return On Equity of FFH-PR-I (17.74%) is better than 98.77% of its industry peers.
- FFH-PR-I has a Return On Invested Capital of 5.36%. This is amongst the best in the industry. FFH-PR-I outperforms 83.95% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FFH-PR-I is in line with the industry average of 2.99%.
- The 3 year average ROIC (4.77%) for FFH-PR-I is below the current ROIC(5.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 17.74% | ||
| ROIC | 5.36% |
ROA(3y)4.31%
ROA(5y)3.41%
ROE(3y)17.47%
ROE(5y)14.83%
ROIC(3y)4.77%
ROIC(5y)3.33%
1.3 Margins
- FFH-PR-I has a Profit Margin (11.07%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of FFH-PR-I has remained more or less at the same level.
- FFH-PR-I has a Operating Margin of 15.63%. This is in the lower half of the industry: FFH-PR-I underperforms 62.96% of its industry peers.
- In the last couple of years the Operating Margin of FFH-PR-I has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.63% | ||
| PM (TTM) | 11.07% | ||
| GM | N/A |
OM growth 3Y17.05%
OM growth 5Y16.16%
PM growth 3Y-10.7%
PM growth 5Y0.68%
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-I is still creating some value.
- FFH-PR-I has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for FFH-PR-I has been reduced compared to 5 years ago.
- Compared to 1 year ago, FFH-PR-I has a worse debt to assets ratio.
2.2 Solvency
- FFH-PR-I has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as FFH-PR-I would need 3.94 years to pay back of all of its debts.
- FFH-PR-I's Debt to FCF ratio of 3.94 is on the low side compared to the rest of the industry. FFH-PR-I is outperformed by 66.67% of its industry peers.
- FFH-PR-I has a Debt/Equity ratio of 0.51. This is a neutral value indicating FFH-PR-I is somewhat dependend on debt financing.
- The Debt to Equity ratio of FFH-PR-I (0.51) is worse than 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | N/A |
ROIC/WACC1.23
WACC4.36%
2.3 Liquidity
- A Current Ratio of 0.52 indicates that FFH-PR-I may have some problems paying its short term obligations.
- FFH-PR-I has a better Current ratio (0.52) than 85.19% of its industry peers.
- FFH-PR-I has a Quick Ratio of 0.52. This is a bad value and indicates that FFH-PR-I is not financially healthy enough and could expect problems in meeting its short term obligations.
- FFH-PR-I has a Quick ratio of 0.52. This is amongst the best in the industry. FFH-PR-I outperforms 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 26.47% over the past year.
- The Earnings Per Share has been growing by 18.21% on average over the past years. This is quite good.
- Looking at the last year, FFH-PR-I shows a small growth in Revenue. The Revenue has grown by 7.16% in the last year.
- The Revenue has been growing by 13.88% on average over the past years. This is quite good.
EPS 1Y (TTM)26.47%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%22.1%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y17.52%
Revenue growth 5Y13.88%
Sales Q2Q%-28.01%
3.2 Future
- FFH-PR-I is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.91% yearly.
- The Revenue is expected to grow by 12.52% on average over the next years. This is quite good.
EPS Next Y23.15%
EPS Next 2Y9.39%
EPS Next 3Y7.52%
EPS Next 5Y-3.91%
Revenue Next Year4.39%
Revenue Next 2Y3.96%
Revenue Next 3Y3.7%
Revenue Next 5Y12.52%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 0.09, which indicates a rather cheap valuation of FFH-PR-I.
- 98.77% of the companies in the same industry are more expensive than FFH-PR-I, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.32. FFH-PR-I is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 0.09, the valuation of FFH-PR-I can be described as very cheap.
- Based on the Price/Forward Earnings ratio, FFH-PR-I is valued cheaper than 98.77% of the companies in the same industry.
- FFH-PR-I is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.09 | ||
| Fwd PE | 0.09 |
4.2 Price Multiples
- FFH-PR-I's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FFH-PR-I is cheaper than 96.30% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, FFH-PR-I is valued cheaper than 97.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.13 | ||
| EV/EBITDA | 0.78 |
4.3 Compensation for Growth
- FFH-PR-I's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- FFH-PR-I has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0
PEG (5Y)0
EPS Next 2Y9.39%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.84%, FFH-PR-I is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 4.15, FFH-PR-I'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-I!
- With a Dividend Yield of 0.84, FFH-PR-I pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
- The dividend of FFH-PR-I is nicely growing with an annual growth rate of 16.82%!
- FFH-PR-I has been paying a dividend for at least 10 years, so it has a reliable track record.
- FFH-PR-I has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)16.82%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- FFH-PR-I pays out 18.53% of its income as dividend. This is a sustainable payout ratio.
DP18.53%
EPS Next 2Y9.39%
EPS Next 3Y7.52%
FAIRFAX FINL HLDGS LTD - FFHCN 3.327 PERP / FFH-PR-I.CA FAQ
What is the fundamental rating for FFH-PR-I stock?
ChartMill assigns a fundamental rating of 5 / 10 to FFH-PR-I.CA.
Can you provide the valuation status for FAIRFAX FINL HLDGS LTD - FFHCN 3.327 PERP?
ChartMill assigns a valuation rating of 9 / 10 to FAIRFAX FINL HLDGS LTD - FFHCN 3.327 PERP (FFH-PR-I.CA). This can be considered as Undervalued.
Can you provide the profitability details for FAIRFAX FINL HLDGS LTD - FFHCN 3.327 PERP?
FAIRFAX FINL HLDGS LTD - FFHCN 3.327 PERP (FFH-PR-I.CA) has a profitability rating of 6 / 10.
What is the expected EPS growth for FAIRFAX FINL HLDGS LTD - FFHCN 3.327 PERP (FFH-PR-I.CA) stock?
The Earnings per Share (EPS) of FAIRFAX FINL HLDGS LTD - FFHCN 3.327 PERP (FFH-PR-I.CA) is expected to grow by 23.15% in the next year.
Can you provide the dividend sustainability for FFH-PR-I stock?
The dividend rating of FAIRFAX FINL HLDGS LTD - FFHCN 3.327 PERP (FFH-PR-I.CA) is 4 / 10 and the dividend payout ratio is 18.53%.