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. There are concerns on the financial health of FFH-PR-K while its profitability can be described as average. 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.
FFH-PR-K 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-K 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-K belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
The Return On Equity of FFH-PR-K (16.12%) is better than 95.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.10%, FFH-PR-K belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FFH-PR-K is above the industry average of 2.73%.
The 3 year average ROIC (4.77%) for FFH-PR-K 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
FFH-PR-K has a Profit Margin of 10.03%. This is in the better half of the industry: FFH-PR-K outperforms 60.49% 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.
Looking at the Operating Margin, with a value of 14.77%, FFH-PR-K is doing worse than 81.48% of the companies in the same industry.
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
FFH-PR-K has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, FFH-PR-K has less shares outstanding
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 has a Debt to FCF ratio of 3.28. This is in the lower half of the industry: FFH-PR-K underperforms 65.43% of its industry peers.
FFH-PR-K 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-K (0.49) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.17
WACC4.37%
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.
FFH-PR-K's Current ratio of 0.52 is amongst the best of the industry. FFH-PR-K outperforms 81.48% of its industry peers.
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.
With an excellent Quick ratio value of 0.52, FFH-PR-K belongs to the best of the industry, outperforming 81.48% 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.
Measured over the past years, FFH-PR-K shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.21% on average per year.
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
Based on estimates for the next years, FFH-PR-K will show a decrease in Earnings Per Share. The EPS will decrease by -5.80% on average per year.
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.
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
A Price/Earnings ratio of 0.11 indicates a rather cheap valuation of FFH-PR-K.
Based on the Price/Earnings ratio, FFH-PR-K is valued cheaper than 90.12% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.86. FFH-PR-K is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 0.10, the valuation of FFH-PR-K can be described as very cheap.
Based on the Price/Forward Earnings ratio, FFH-PR-K is valued cheaply inside the industry as 95.06% of the companies are valued more expensively.
FFH-PR-K's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.11 | ||
| Fwd PE | 0.1 |
4.2 Price Multiples
FFH-PR-K's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FFH-PR-K is cheaper than 92.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FFH-PR-K is valued a bit cheaper than the industry average as 76.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.12 | ||
| EV/EBITDA | 1.47 |
4.3 Compensation for Growth
The decent profitability rating of FFH-PR-K 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 3.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.01, FFH-PR-K's dividend is way lower than its industry peers. On top of this 83.95% of the companies listed in the same industry pay a better dividend than FFH-PR-K!
Compared to an average S&P500 Dividend Yield of 2.43, FFH-PR-K pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
5.2 History
On average, the dividend of FFH-PR-K grows each year by 17.11%, 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)17.11%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
15.10% of the earnings are spent on dividend by FFH-PR-K. 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 5.045 PERP
TSX:FFH-PR-K (6/26/2025, 7:00:00 PM)
25
+0.1 (+0.4%)
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 Cap605.75M
Analysts78.18
Price Target27.76 (11.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Yearly Dividend34.94
Dividend Growth(5Y)17.11%
DP15.1%
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)-8%
PT rev (3m)-5.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.28%
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%
Revenue NY rev (3m)7.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.11 | ||
| 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)236.69
EY946.76%
EPS(NY)238.52
Fwd EY954.08%
FCF(TTM)202.52
FCFY810.09%
OCF(TTM)225.63
OCFY902.51%
SpS2184.38
BVpS1359.64
TBVpS892
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
WACC4.37%
ROIC/WACC1.17
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%