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
Overall FFH-PR-I gets a fundamental rating of 5 out of 10. We evaluated FFH-PR-I 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. FFH-PR-I scores decently on growth, while it is valued quite cheap. This could make an interesting 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 has a better Return On Assets (4.01%) than 89.87% 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 96.20% of its industry peers.
With an excellent Return On Invested Capital value of 5.10%, FFH-PR-I belongs to the best of the industry, outperforming 83.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FFH-PR-I is above the industry average of 2.73%.
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 Profit Margin value of 10.03%, FFH-PR-I perfoms like the industry average, outperforming 59.49% of the companies in the same industry.
FFH-PR-I's Profit Margin has been stable in the last couple of years.
The Operating Margin of FFH-PR-I (14.77%) is worse than 82.28% 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 | 14.77% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FFH-PR-I is creating some value.
Compared to 1 year ago, FFH-PR-I has less shares outstanding
Compared to 5 years ago, FFH-PR-I has less shares outstanding
Compared to 1 year ago, FFH-PR-I has a worse debt to assets ratio.
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 65.82% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that FFH-PR-I is not too dependend on debt financing.
The Debt to Equity ratio of FFH-PR-I (0.49) is worse than 67.09% 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 Current ratio of 0.52. This is amongst the best in the industry. FFH-PR-I outperforms 86.08% of its industry peers.
A Quick Ratio of 0.52 indicates that FFH-PR-I may have some problems paying 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 86.08% of the companies in the same industry.
| 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 11.32% in the last year.
Measured over the past years, FFH-PR-I shows a quite strong growth in Revenue. The Revenue has been growing by 13.88% on average per year.
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
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
FFH-PR-I is valuated cheaply with a Price/Earnings ratio of 0.10.
Compared to the rest of the industry, the Price/Earnings ratio of FFH-PR-I indicates a rather cheap valuation: FFH-PR-I is cheaper than 92.41% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. FFH-PR-I is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 0.10, the valuation of FFH-PR-I can be described as very cheap.
96.20% of the companies in the same industry are more expensive than FFH-PR-I, based on the Price/Forward Earnings ratio.
FFH-PR-I is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.1 | ||
| Fwd PE | 0.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FFH-PR-I is valued cheaper than 93.67% 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 77.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.12 | ||
| EV/EBITDA | 1.46 |
4.3 Compensation for Growth
FFH-PR-I has a very decent profitability rating, which 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 of 0.94%, FFH-PR-I is not a good candidate for dividend investing.
With a Dividend Yield of 0.94, FFH-PR-I pays less dividend than the industry average, which is at 4.24. 92.41% 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 2.38, FFH-PR-I's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of FFH-PR-I grows each year by 17.11%, which is quite nice.
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)17.11%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
15.10% of the earnings are spent on dividend by FFH-PR-I. This is a low number and sustainable payout ratio.
DP15.1%
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
FAIRFAX FINL HLDGS LTD - FFHCN 3.327 PERP
TSX:FFH-PR-I (5/30/2025, 7:00:00 PM)
24.48
+0.03 (+0.12%)
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 Cap593.15M
Analysts78.18
Price Target28.73 (17.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend35.18
Dividend Growth(5Y)17.11%
DP15.1%
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)1.73%
PT rev (3m)7.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)-0.46%
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 | 1.46 |
EPS(TTM)238.75
EY975.29%
EPS(NY)240.6
Fwd EY982.84%
FCF(TTM)204.29
FCFY834.51%
OCF(TTM)227.59
OCFY929.71%
SpS2203.42
BVpS1371.49
TBVpS899.78
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-Score5
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.28 | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | 54.24% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 10.09 | ||
| Cash Conversion | 61.78% | ||
| Profit Quality | 92.4% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | N/A |
F-Score5
WACC4.21%
ROIC/WACC1.21
Cap/Depr(3y)57.82%
Cap/Depr(5y)49.57%
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 1Y5.51%
EBIT growth 3Y37.56%
EBIT growth 5Y32.27%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y748.28%
FCF growth 3Y-17.08%
FCF growth 5Y28.19%
OCF growth 1Y10341%
OCF growth 3Y-15.59%
OCF growth 5Y24.13%