FAIRFAX FINL HLDGS LTD - FFHCN 3.327 PERP (FFH-PR-I.CA) Stock Fundamental Analysis
TSX:FFH-PR-I - Toronto Stock Exchange - CA3039018476 - Currency: CAD
FFH-PR-I gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Insurance industry. While FFH-PR-I is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on FFH-PR-I.
1. Profitability
1.1 Basic Checks
FFH-PR-I had positive earnings in the past year.
In the past year FFH-PR-I had a positive cash flow from operations.
In the past 5 years FFH-PR-I has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: FFH-PR-I reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.01%, FFH-PR-I belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
FFH-PR-I has a better Return On Equity (16.12%) than 91.46% of its industry peers.
FFH-PR-I's Return On Invested Capital of 5.10% is fine compared to the rest of the industry. FFH-PR-I outperforms 78.05% of its industry peers.
FFH-PR-I had an Average Return On Invested Capital over the past 3 years of 4.73%. This is in line with the industry average of 2.83%.
The last Return On Invested Capital (5.10%) for FFH-PR-I is above the 3 year average (4.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 16.12% | ||
| ROIC | 5.1% |
ROA(3y)4.31%
ROA(5y)3.41%
ROE(3y)17.47%
ROE(5y)14.83%
ROIC(3y)4.73%
ROIC(5y)3.3%
1.3 Margins
With a decent Profit Margin value of 10.02%, FFH-PR-I is doing good in the industry, outperforming 60.98% of the companies in the same industry.
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 worse Operating Margin (14.76%) than 90.24% 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 | 14.76% | ||
| PM (TTM) | 10.02% | ||
| GM | N/A |
OM growth 3Y17.07%
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.
The number of shares outstanding for FFH-PR-I has been reduced compared to 1 year ago.
FFH-PR-I has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FFH-PR-I is higher compared to a year ago.
2.2 Solvency
FFH-PR-I has a debt to FCF ratio of 3.28. This is a good value and a sign of high solvency as FFH-PR-I would need 3.28 years to pay back of all of its debts.
The Debt to FCF ratio of FFH-PR-I (3.28) is worse than 64.63% of its industry peers.
FFH-PR-I has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
FFH-PR-I has a worse Debt to Equity ratio (0.49) than 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.21
WACC4.21%
2.3 Liquidity
FFH-PR-I has a Current 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 better Current ratio (0.52) than 84.15% 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.
The Quick ratio of FFH-PR-I (0.52) is better than 84.15% 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 nice 11.74% over the past year.
FFH-PR-I shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.21% yearly.
Looking at the last year, FFH-PR-I shows a quite strong growth in Revenue. The Revenue has grown by 9.22% 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)11.74%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%38.55%
Revenue 1Y (TTM)9.22%
Revenue growth 3Y17.53%
Revenue growth 5Y13.88%
Sales Q2Q%-2.66%
3.2 Future
The Earnings Per Share is expected to decrease by -5.80% on average over the next years.
FFH-PR-I is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.47% yearly.
EPS Next Y-2.62%
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
EPS Next 5Y-5.8%
Revenue Next Year28.73%
Revenue Next 2Y17.18%
Revenue Next 3Y18.16%
Revenue Next 5Y12.47%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
FFH-PR-I is valuated cheaply with a Price/Earnings ratio of 0.10.
Based on the Price/Earnings ratio, FFH-PR-I is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 23.99, FFH-PR-I is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 0.10, the valuation of FFH-PR-I can be described as very cheap.
96.34% of the companies in the same industry are more expensive than FFH-PR-I, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, FFH-PR-I is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.1 | ||
| Fwd PE | 0.1 |
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 95.12% of the companies in the same industry.
FFH-PR-I's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FFH-PR-I is cheaper than 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.12 | ||
| EV/EBITDA | 1.46 |
4.3 Compensation for Growth
The decent profitability rating of FFH-PR-I may justify a higher PE ratio.
FFH-PR-I's earnings are expected to decrease with -3.62% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.01
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.00%, FFH-PR-I has a reasonable but not impressive dividend return.
With a Dividend Yield of 1.00, FFH-PR-I pays less dividend than the industry average, which is at 4.35. 91.46% of the companies listed in the same industry pay a better dividend than FFH-PR-I!
Compared to an average S&P500 Dividend Yield of 2.44, FFH-PR-I's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
The dividend of FFH-PR-I is nicely growing with an annual growth rate of 16.96%!
FFH-PR-I has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of FFH-PR-I decreased in the last 3 years.
Dividend Growth(5Y)16.96%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
FFH-PR-I pays out 15.09% of its income as dividend. This is a sustainable payout ratio.
DP15.09%
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
FAIRFAX FINL HLDGS LTD - FFHCN 3.327 PERP
TSX:FFH-PR-I (5/7/2025, 7:00:00 PM)
23.7
+0.13 (+0.55%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners38.23%
Inst Owner ChangeN/A
Ins Owners4.01%
Ins Owner ChangeN/A
Market Cap574.25M
Analysts78.18
Price Target28.24 (19.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend34.97
Dividend Growth(5Y)16.96%
DP15.09%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.1%
Min EPS beat(2)23.14%
Max EPS beat(2)29.06%
EPS beat(4)3
Avg EPS beat(4)10.96%
Min EPS beat(4)-25.87%
Max EPS beat(4)29.06%
EPS beat(8)6
Avg EPS beat(8)12.63%
EPS beat(12)10
Avg EPS beat(12)134.85%
EPS beat(16)14
Avg EPS beat(16)129.12%
Revenue beat(2)2
Avg Revenue beat(2)29.57%
Min Revenue beat(2)19.64%
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)-2.93%
PT rev (3m)5.48%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-21.52%
EPS NY rev (1m)0.26%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-2.03%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)7.58%
Revenue NY rev (3m)17.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.1 | ||
| Fwd PE | 0.1 | ||
| P/S | 0.01 | ||
| P/FCF | 0.12 | ||
| P/OCF | 0.1 | ||
| P/B | 0.02 | ||
| P/tB | 0.03 | ||
| EV/EBITDA | 1.46 |
EPS(TTM)238.57
EY1006.62%
EPS(NY)240.41
Fwd EY1014.41%
FCF(TTM)204.14
FCFY861.34%
OCF(TTM)227.41
OCFY959.55%
SpS2204.17
BVpS1370.44
TBVpS899.08
PEG (NY)N/A
PEG (5Y)0.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 16.12% | ||
| ROCE | 6.3% | ||
| ROIC | 5.1% | ||
| ROICexc | 5.26% | ||
| ROICexgc | 7.99% | ||
| OM | 14.76% | ||
| PM (TTM) | 10.02% | ||
| GM | N/A | ||
| FCFM | 9.26% |
ROA(3y)4.31%
ROA(5y)3.41%
ROE(3y)17.47%
ROE(5y)14.83%
ROIC(3y)4.73%
ROIC(5y)3.3%
ROICexc(3y)4.89%
ROICexc(5y)3.43%
ROICexgc(3y)6.61%
ROICexgc(5y)4.68%
ROCE(3y)5.85%
ROCE(5y)4.08%
ROICexcg growth 3Y29.31%
ROICexcg growth 5Y23.47%
ROICexc growth 3Y31.25%
ROICexc growth 5Y24.09%
OM growth 3Y17.07%
OM growth 5Y16.16%
PM growth 3Y-10.7%
PM growth 5Y0.68%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.28 | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | 54.23% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 10.09 | ||
| Cash Conversion | 61.75% | ||
| Profit Quality | 92.4% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | N/A |
F-Score6
WACC4.21%
ROIC/WACC1.21
Cap/Depr(3y)57.82%
Cap/Depr(5y)49.56%
Cap/Sales(3y)1.28%
Cap/Sales(5y)1.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.74%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%38.55%
EPS Next Y-2.62%
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
EPS Next 5Y-5.8%
Revenue 1Y (TTM)9.22%
Revenue growth 3Y17.53%
Revenue growth 5Y13.88%
Sales Q2Q%-2.66%
Revenue Next Year28.73%
Revenue Next 2Y17.18%
Revenue Next 3Y18.16%
Revenue Next 5Y12.47%
EBIT growth 1Y5.57%
EBIT growth 3Y37.58%
EBIT growth 5Y32.28%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y747.72%
FCF growth 3Y-17.08%
FCF growth 5Y28.19%
OCF growth 1Y10236.8%
OCF growth 3Y-15.59%
OCF growth 5Y24.13%