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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

22.41  -0.24 (-1.06%)

Fundamental Rating

5

Taking everything into account, FFH-PR-I scores 5 out of 10 in our fundamental rating. FFH-PR-I was compared to 84 industry peers in the Insurance industry. FFH-PR-I has only an average score on both its financial health and profitability. FFH-PR-I scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

6

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.
FFH-PR-I.CA Yearly Net Income VS EBIT VS OCF VS FCFFFH-PR-I.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B -4B 6B

1.2 Ratios

Looking at the Return On Assets, with a value of 4.32%, FFH-PR-I belongs to the top of the industry, outperforming 87.95% of the companies in the same industry.
The Return On Equity of FFH-PR-I (17.51%) is better than 86.75% of its industry peers.
FFH-PR-I's Return On Invested Capital of 5.11% is fine compared to the rest of the industry. FFH-PR-I outperforms 77.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FFH-PR-I is in line with the industry average of 2.90%.
The last Return On Invested Capital (5.11%) for FFH-PR-I is above the 3 year average (3.84%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.32%
ROE 17.51%
ROIC 5.11%
ROA(3y)4.27%
ROA(5y)3.16%
ROE(3y)18.93%
ROE(5y)14.33%
ROIC(3y)3.84%
ROIC(5y)2.69%
FFH-PR-I.CA Yearly ROA, ROE, ROICFFH-PR-I.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 15 20

1.3 Margins

The Profit Margin of FFH-PR-I (10.76%) is better than 62.65% of its industry peers.
In the last couple of years the Profit Margin of FFH-PR-I has grown nicely.
The Operating Margin of FFH-PR-I (14.61%) is worse than 75.90% of its industry peers.
In the last couple of years the Operating Margin of FFH-PR-I has grown nicely.
Industry RankSector Rank
OM 14.61%
PM (TTM) 10.76%
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
FFH-PR-I.CA Yearly Profit, Operating, Gross MarginsFFH-PR-I.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 15

4

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.
Compared to 1 year ago, FFH-PR-I has less shares outstanding
FFH-PR-I has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FFH-PR-I has an improved debt to assets ratio.
FFH-PR-I.CA Yearly Shares OutstandingFFH-PR-I.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M 25M
FFH-PR-I.CA Yearly Total Debt VS Total AssetsFFH-PR-I.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B 80B

2.2 Solvency

The Debt to FCF ratio of FFH-PR-I is 4.17, which is a neutral value as it means it would take FFH-PR-I, 4.17 years of fcf income to pay off all of its debts.
FFH-PR-I has a Debt to FCF ratio of 4.17. This is in the lower half of the industry: FFH-PR-I underperforms 73.49% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that FFH-PR-I is not too dependend on debt financing.
FFH-PR-I has a worse Debt to Equity ratio (0.48) than 66.27% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 4.17
Altman-Z N/A
ROIC/WACC1.18
WACC4.35%
FFH-PR-I.CA Yearly LT Debt VS Equity VS FCFFFH-PR-I.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B

2.3 Liquidity

A Current Ratio of 0.52 indicates that FFH-PR-I may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.52, FFH-PR-I belongs to the top of the industry, outperforming 84.34% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.52, FFH-PR-I belongs to the top of the industry, outperforming 84.34% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.52
Quick Ratio 0.52
FFH-PR-I.CA Yearly Current Assets VS Current LiabilitesFFH-PR-I.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

4

3. Growth

3.1 Past

FFH-PR-I shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.75%.
The Earnings Per Share has been growing by 73.99% on average over the past years. This is a very strong growth
Looking at the last year, FFH-PR-I shows a quite strong growth in Revenue. The Revenue has grown by 13.03% in the last year.
The Revenue has been growing by 16.32% on average over the past years. This is quite good.
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

Based on estimates for the next years, FFH-PR-I will show a decrease in Earnings Per Share. The EPS will decrease by -9.58% on average per year.
The Revenue is expected to grow by 4.32% on average over the next years.
EPS Next Y-11.7%
EPS Next 2Y-5.14%
EPS Next 3Y-0.27%
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.
FFH-PR-I.CA Yearly Revenue VS EstimatesFFH-PR-I.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10B 20B 30B
FFH-PR-I.CA Yearly EPS VS EstimatesFFH-PR-I.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 50 100 150

7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 0.10 indicates a rather cheap valuation of FFH-PR-I.
Based on the Price/Earnings ratio, FFH-PR-I is valued cheaper than 90.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of FFH-PR-I to the average of the S&P500 Index (28.12), we can say FFH-PR-I is valued rather cheaply.
FFH-PR-I is valuated cheaply with a Price/Forward Earnings ratio of 0.10.
FFH-PR-I's Price/Forward Earnings ratio is rather cheap when compared to the industry. FFH-PR-I is cheaper than 93.98% of the companies in the same industry.
FFH-PR-I's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.77.
Industry RankSector Rank
PE 0.1
Fwd PE 0.1
FFH-PR-I.CA Price Earnings VS Forward Price EarningsFFH-PR-I.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 92.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FFH-PR-I is valued a bit cheaper than the industry average as 72.29% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 0.18
EV/EBITDA 0.76
FFH-PR-I.CA Per share dataFFH-PR-I.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 500 1K 1.5K

4.3 Compensation for Growth

FFH-PR-I has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y-5.14%
EPS Next 3Y-0.27%

3

5. Dividend

5.1 Amount

FFH-PR-I has a Yearly Dividend Yield of 1.08%.
Compared to an average industry Dividend Yield of 4.31, FFH-PR-I's dividend is way lower than its industry peers. On top of this 85.54% 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 2.29, FFH-PR-I's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.08%

5.2 History

The dividend of FFH-PR-I has a limited annual growth rate of 1.33%.
FFH-PR-I has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of FFH-PR-I decreased in the last 3 years.
Dividend Growth(5Y)1.33%
Div Incr Years0
Div Non Decr Years2
FFH-PR-I.CA Yearly Dividends per shareFFH-PR-I.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

FFH-PR-I pays out 10.22% of its income as dividend. This is a sustainable payout ratio.
DP10.22%
EPS Next 2Y-5.14%
EPS Next 3Y-0.27%
FFH-PR-I.CA Yearly Income VS Free CF VS DividendFFH-PR-I.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B -2B 4B -4B 6B
FFH-PR-I.CA Dividend Payout.FFH-PR-I.CA Dividend Payout, showing the Payout Ratio.FFH-PR-I.CA Dividend Payout.PayoutRetained Earnings

FAIRFAX FINL HLDGS LTD - FFHCN 3.327 PERP

TSX:FFH-PR-I (2/7/2025, 7:00:00 PM)

22.41

-0.24 (-1.06%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-31 2024-10-31/amc
Earnings (Next)02-13 2025-02-13/amc
Inst Owners37.87%
Inst Owner ChangeN/A
Ins Owners3.94%
Ins Owner ChangeN/A
Market Cap687.99M
Analysts78.18
Price Target26.77 (19.46%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.08%
Yearly Dividend12.31
Dividend Growth(5Y)1.33%
DP10.22%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.18%
Min EPS beat(2)-25.87%
Max EPS beat(2)17.51%
EPS beat(4)3
Avg EPS beat(4)10.65%
Min EPS beat(4)-25.87%
Max EPS beat(4)50.56%
EPS beat(8)6
Avg EPS beat(8)17%
EPS beat(12)10
Avg EPS beat(12)137.07%
EPS beat(16)13
Avg EPS beat(16)131.14%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)5.36%
PT rev (3m)23.71%
EPS NQ rev (1m)9.18%
EPS NQ rev (3m)9.18%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)4.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.84%
Valuation
Industry RankSector Rank
PE 0.1
Fwd PE 0.1
P/S 0.01
P/FCF 0.18
P/OCF 0.16
P/B 0.02
P/tB 0.03
EV/EBITDA 0.76
EPS(TTM)234.58
EY1046.76%
EPS(NY)223.77
Fwd EY998.51%
FCF(TTM)124.51
FCFY555.6%
OCF(TTM)143.61
OCFY640.83%
SpS1755.07
BVpS1078.02
TBVpS784.62
PEG (NY)N/A
PEG (5Y)0
Profitability
Industry RankSector Rank
ROA 4.32%
ROE 17.51%
ROCE 6.24%
ROIC 5.11%
ROICexc 5.54%
ROICexgc 8.41%
OM 14.61%
PM (TTM) 10.76%
GM N/A
FCFM 7.09%
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-Score4
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 4.17
Debt/EBITDA 1.76
Cap/Depr 49.28%
Cap/Sales 1.09%
Interest Coverage 250
Cash Conversion 48.65%
Profit Quality 65.95%
Current Ratio 0.52
Quick Ratio 0.52
Altman-Z N/A
F-Score4
WACC4.35%
ROIC/WACC1.18
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-11.7%
EPS Next 2Y-5.14%
EPS Next 3Y-0.27%
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 1Y39.34%
EBIT growth 3Y194.47%
EBIT growth 5Y102.24%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y425.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y248.14%
OCF growth 3YN/A
OCF growth 5YN/A