FAIRFAX FINL HLDGS LTD - FFHCN 5.045 PERP (FFH-PR-K.CA) Stock Fundamental Analysis
TSX:FFH-PR-K - Toronto Stock Exchange - CA3039018211 - Currency: CAD
Taking everything into account, FFH-PR-K scores 5 out of 10 in our fundamental rating. FFH-PR-K was compared to 81 industry peers in the Insurance industry. FFH-PR-K has a medium profitability rating, but doesn't score so well on its financial health evaluation. FFH-PR-K may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
FFH-PR-K had positive earnings in the past year.
FFH-PR-K had a positive operating cash flow in the past year.
Each year in the past 5 years FFH-PR-K has been profitable.
The reported operating cash flow has been mixed in the past 5 years: FFH-PR-K reported negative operating cash flow in multiple years.
1.2 Ratios
FFH-PR-K has a Return On Assets of 4.01%. This is amongst the best in the industry. FFH-PR-K outperforms 88.89% of its industry peers.
FFH-PR-K has a better Return On Equity (16.12%) than 95.06% of its industry peers.
FFH-PR-K has a Return On Invested Capital of 5.10%. This is amongst the best in the industry. FFH-PR-K outperforms 81.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FFH-PR-K is above the industry average of 2.70%.
The last Return On Invested Capital (5.10%) for FFH-PR-K is above the 3 year average (4.77%), 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)4.77%
ROIC(5y)3.33%
1.3 Margins
FFH-PR-K's Profit Margin of 10.03% is in line compared to the rest of the industry. FFH-PR-K outperforms 59.26% of its industry peers.
In the last couple of years the Profit Margin of FFH-PR-K has remained more or less at the same level.
FFH-PR-K has a Operating Margin of 14.77%. This is amonst the worse of the industry: FFH-PR-K underperforms 82.72% of its industry peers.
FFH-PR-K'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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FFH-PR-K is creating some value.
The number of shares outstanding for FFH-PR-K has been reduced compared to 1 year ago.
Compared to 5 years ago, FFH-PR-K has less shares outstanding
The debt/assets ratio for FFH-PR-K is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of FFH-PR-K is 3.28, which is a good value as it means it would take FFH-PR-K, 3.28 years of fcf income to pay off all of its debts.
FFH-PR-K's Debt to FCF ratio of 3.28 is on the low side compared to the rest of the industry. FFH-PR-K is outperformed by 66.67% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that FFH-PR-K is not too dependend on debt financing.
FFH-PR-K has a Debt to Equity ratio of 0.49. This is in the lower half of the industry: FFH-PR-K underperforms 67.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.16
WACC4.38%
2.3 Liquidity
FFH-PR-K has a Current Ratio of 0.52. This is a bad value and indicates that FFH-PR-K is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.52, FFH-PR-K belongs to the top of the industry, outperforming 82.72% of the companies in the same industry.
FFH-PR-K has a Quick Ratio of 0.52. This is a bad value and indicates that FFH-PR-K is not financially healthy enough and could expect problems in meeting its short term obligations.
FFH-PR-K's Quick ratio of 0.52 is amongst the best of the industry. FFH-PR-K 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.
The Earnings Per Share has been growing by 18.21% on average over the past years. This is quite good.
FFH-PR-K shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.32%.
FFH-PR-K shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.88% yearly.
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
FFH-PR-K is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.80% yearly.
FFH-PR-K 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 Year28.13%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 0.11, which indicates a rather cheap valuation of FFH-PR-K.
95.06% of the companies in the same industry are more expensive than FFH-PR-K, based on the Price/Earnings ratio.
FFH-PR-K is valuated cheaply when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 0.11, which indicates a rather cheap valuation of FFH-PR-K.
FFH-PR-K's Price/Forward Earnings ratio is rather cheap when compared to the industry. FFH-PR-K is cheaper than 95.06% of the companies in the same industry.
FFH-PR-K is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.11 | ||
| Fwd PE | 0.11 |
4.2 Price Multiples
92.59% of the companies in the same industry are more expensive than FFH-PR-K, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FFH-PR-K is valued a bit cheaper than 76.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.12 | ||
| EV/EBITDA | 1.47 |
4.3 Compensation for Growth
FFH-PR-K has a very decent profitability rating, which may justify a higher PE ratio.
FFH-PR-K'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
FFH-PR-K has a Yearly Dividend Yield of 2.99%.
FFH-PR-K's Dividend Yield is slightly below the industry average, which is at 4.11.
Compared to an average S&P500 Dividend Yield of 2.32, FFH-PR-K pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
On average, the dividend of FFH-PR-K grows each year by 16.96%, which is quite nice.
FFH-PR-K has paid a dividend for at least 10 years, which is a reliable track record.
FFH-PR-K has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)16.96%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
FFH-PR-K 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 5.045 PERP
TSX:FFH-PR-K (7/25/2025, 7:00:00 PM)
25.06
-0.12 (-0.48%)
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 Cap605.95M
Analysts78.18
Price Target28.47 (13.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend34.61
Dividend Growth(5Y)16.96%
DP15.09%
Div Incr Years0
Div Non Decr Years4
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)2.54%
PT rev (3m)-2.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.11 | ||
| Fwd PE | 0.11 | ||
| 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)236.5
EY943.74%
EPS(NY)238.33
Fwd EY951.04%
FCF(TTM)202.79
FCFY809.2%
OCF(TTM)225.91
OCFY901.47%
SpS2187.17
BVpS1361.37
TBVpS893.13
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
WACC4.38%
ROIC/WACC1.16
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%