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
Taking everything into account, FFH-PR-I scores 5 out of 10 in our fundamental rating. FFH-PR-I was compared to 81 industry peers in the Insurance industry. There are concerns on the financial health of FFH-PR-I while its profitability can be described as average. 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.
In the past year FFH-PR-I had a positive cash flow from operations.
FFH-PR-I had positive earnings in each of the past 5 years.
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
FFH-PR-I has a Return On Assets of 4.01%. This is amongst the best in the industry. FFH-PR-I outperforms 90.12% of its industry peers.
FFH-PR-I's Return On Equity of 16.12% is amongst the best of the industry. FFH-PR-I outperforms 96.30% of its industry peers.
FFH-PR-I has a better Return On Invested Capital (5.10%) than 82.72% of its industry peers.
FFH-PR-I had an Average Return On Invested Capital over the past 3 years of 4.77%. This is above the industry average of 2.70%.
The 3 year average ROIC (4.77%) for FFH-PR-I is below the current ROIC(5.10%), indicating increased profibility in the last year.
| 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)4.77%
ROIC(5y)3.33%
1.3 Margins
With a decent Profit Margin value of 10.03%, FFH-PR-I is doing good in the industry, outperforming 60.49% of the companies in the same industry.
FFH-PR-I's Profit Margin has been stable in the last couple of years.
FFH-PR-I has a Operating Margin of 14.77%. This is amonst the worse of the industry: FFH-PR-I underperforms 81.48% of its industry peers.
FFH-PR-I's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.77% | ||
| PM (TTM) | 10.03% | ||
| GM | N/A |
OM growth 3Y17.05%
OM growth 5Y16.15%
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.
Compared to 1 year ago, FFH-PR-I has less shares outstanding
The number of shares outstanding for FFH-PR-I has been reduced compared to 5 years ago.
FFH-PR-I has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of FFH-PR-I is 3.28, which is a good value as it means it would take FFH-PR-I, 3.28 years of fcf income to pay off all of its debts.
FFH-PR-I's Debt to FCF ratio of 3.28 is on the low side compared to the rest of the industry. FFH-PR-I is outperformed by 64.20% 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.
The Debt to Equity ratio of FFH-PR-I (0.49) is worse than 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.17
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.
Looking at the Current ratio, with a value of 0.52, FFH-PR-I belongs to the top of the industry, outperforming 82.72% of the companies in the same industry.
A Quick Ratio of 0.52 indicates that FFH-PR-I may have some problems paying its short term obligations.
FFH-PR-I's Quick ratio of 0.52 is amongst the best of the industry. FFH-PR-I outperforms 82.72% 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.
The Revenue has grown by 11.32% in the past year. This is quite good.
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)11.32%
Revenue growth 3Y17.52%
Revenue growth 5Y13.88%
Sales Q2Q%-18.6%
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 -5.80% on average per year.
The Revenue is expected to grow by 12.47% on average over the next years. This is quite good.
EPS Next Y-2.62%
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
EPS Next 5Y-5.8%
Revenue Next Year28.13%
Revenue Next 2Y17.21%
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
Based on the Price/Earnings ratio of 0.10, the valuation of FFH-PR-I can be described as very cheap.
Based on the Price/Earnings ratio, FFH-PR-I is valued cheaply inside the industry as 96.30% of the companies are valued more expensively.
FFH-PR-I's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
A Price/Forward Earnings ratio of 0.10 indicates a rather cheap valuation of FFH-PR-I.
Based on the Price/Forward Earnings ratio, FFH-PR-I is valued cheaply inside the industry as 96.30% of the companies are valued more expensively.
FFH-PR-I's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| 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 93.83% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FFH-PR-I indicates a somewhat cheap valuation: FFH-PR-I is cheaper than 77.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.12 | ||
| EV/EBITDA | 1.47 |
4.3 Compensation for Growth
The decent profitability rating of FFH-PR-I may justify a higher PE ratio.
A cheap valuation may be justified as FFH-PR-I's earnings are expected to decrease with -3.62% in the coming years.
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 3.40%, FFH-PR-I has a reasonable but not impressive dividend return.
With a Dividend Yield of 3.40, FFH-PR-I pays less dividend than the industry average, which is at 5.18. 87.65% of the companies listed in the same industry pay a better dividend than FFH-PR-I!
FFH-PR-I's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
5.2 History
The dividend of FFH-PR-I is nicely growing with an annual growth rate of 16.96%!
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)16.96%
Div Incr Years0
Div Non Decr Years3
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 (7/11/2025, 7:00:00 PM)
24.54
+0.07 (+0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners37.64%
Inst Owner ChangeN/A
Ins Owners2.45%
Ins Owner ChangeN/A
Market Cap593.38M
Analysts78.18
Price Target27.98 (14.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
Yearly Dividend34.67
Dividend Growth(5Y)16.96%
DP15.09%
Div Incr Years0
Div Non Decr Years3
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)0%
PT rev (3m)-1.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.02%
EPS NY rev (1m)0%
EPS NY rev (3m)0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.1 | ||
| Fwd PE | 0.1 | ||
| P/S | 0.01 | ||
| P/FCF | 0.12 | ||
| P/OCF | 0.11 | ||
| P/B | 0.02 | ||
| P/tB | 0.03 | ||
| EV/EBITDA | 1.47 |
EPS(TTM)236.92
EY965.44%
EPS(NY)238.75
Fwd EY972.9%
FCF(TTM)203.14
FCFY827.8%
OCF(TTM)226.31
OCFY922.19%
SpS2191.01
BVpS1363.76
TBVpS894.7
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 | 5.25% | ||
| ROICexgc | 7.99% | ||
| OM | 14.77% | ||
| PM (TTM) | 10.03% | ||
| GM | N/A | ||
| FCFM | 9.27% |
ROA(3y)4.31%
ROA(5y)3.41%
ROE(3y)17.47%
ROE(5y)14.83%
ROIC(3y)4.77%
ROIC(5y)3.33%
ROICexc(3y)4.93%
ROICexc(5y)3.46%
ROICexgc(3y)6.66%
ROICexgc(5y)4.71%
ROCE(3y)5.89%
ROCE(5y)4.11%
ROICexcg growth 3Y29.29%
ROICexcg growth 5Y23.46%
ROICexc growth 3Y31.23%
ROICexc growth 5Y24.08%
OM growth 3Y17.05%
OM growth 5Y16.15%
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 | 61.77% | ||
| Profit Quality | 92.4% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | N/A |
F-Score6
WACC4.36%
ROIC/WACC1.17
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)11.32%
Revenue growth 3Y17.52%
Revenue growth 5Y13.88%
Sales Q2Q%-18.6%
Revenue Next Year28.13%
Revenue Next 2Y17.21%
Revenue Next 3Y18.16%
Revenue Next 5Y12.47%
EBIT growth 1Y5.52%
EBIT growth 3Y37.56%
EBIT growth 5Y32.27%
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%