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
FFH-PR-K gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 79 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years FFH-PR-K has always been profitable.
In multiple years FFH-PR-K reported negative operating cash flow during the last 5 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 88.61% of the companies in the same industry.
FFH-PR-K's Return On Equity of 16.12% is amongst the best of the industry. FFH-PR-K outperforms 94.94% of its industry peers.
With an excellent Return On Invested Capital value of 5.10%, FFH-PR-K belongs to the best of the industry, outperforming 82.28% of the companies in the same industry.
FFH-PR-K had an Average Return On Invested Capital over the past 3 years of 4.73%. This is above the industry average of 2.62%.
The last Return On Invested Capital (5.10%) for FFH-PR-K is above the 3 year average (4.73%), 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)4.73%
ROIC(5y)3.3%
1.3 Margins
With a Profit Margin value of 10.02%, FFH-PR-K perfoms like the industry average, outperforming 58.23% of the companies in the same industry.
FFH-PR-K's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 14.76%, FFH-PR-K is doing worse than 83.54% of the companies in the same industry.
In the last couple of years the Operating Margin of FFH-PR-K has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.76% | ||
| PM (TTM) | 10.02% | ||
| GM | N/A |
OM growth 3Y17.07%
OM growth 5Y16.16%
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-K is still creating some value.
The number of shares outstanding for FFH-PR-K has been reduced compared to 1 year ago.
FFH-PR-K has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FFH-PR-K has a worse debt to assets ratio.
2.2 Solvency
FFH-PR-K has a debt to FCF ratio of 3.28. This is a good value and a sign of high solvency as FFH-PR-K would need 3.28 years to pay back of 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 65.82% 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 67.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.21
WACC4.23%
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 has a Current ratio of 0.52. This is amongst the best in the industry. FFH-PR-K outperforms 84.81% of its industry peers.
A Quick Ratio of 0.52 indicates that FFH-PR-K may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.52, FFH-PR-K belongs to the top of the industry, outperforming 84.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
FFH-PR-K shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.74%, which is quite good.
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 11.75%.
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)11.75%
Revenue growth 3Y17.53%
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.
Based on estimates for the next years, FFH-PR-K will show a quite strong growth in Revenue. The Revenue will grow by 12.47% on average per year.
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.
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
Based on the Price/Earnings ratio of 0.10, the valuation of FFH-PR-K can be described as very cheap.
Based on the Price/Earnings ratio, FFH-PR-K is valued cheaper than 91.14% of the companies in the same industry.
FFH-PR-K's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.25.
FFH-PR-K is valuated cheaply with a Price/Forward Earnings ratio of 0.10.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FFH-PR-K indicates a rather cheap valuation: FFH-PR-K is cheaper than 94.94% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, FFH-PR-K is valued rather cheaply.
| 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-K is valued cheaper than 93.67% of the companies in the same industry.
FFH-PR-K's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FFH-PR-K is cheaper than 75.95% of the companies 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-K may justify a higher PE ratio.
A cheap valuation may be justified as FFH-PR-K'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
FFH-PR-K has a yearly dividend return of 0.95%, which is pretty low.
With a Dividend Yield of 0.95, FFH-PR-K pays less dividend than the industry average, which is at 4.34. 93.67% 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 2.40, FFH-PR-K's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
The dividend of FFH-PR-K is nicely growing with an annual growth rate of 16.96%!
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 Years2
Div Non Decr Years3
5.3 Sustainability
15.09% of the earnings are spent on dividend by FFH-PR-K. This is a low number and 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 (5/30/2025, 7:00:00 PM)
24.96
+0.01 (+0.04%)
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 Cap604.78M
Analysts78.18
Price Target30.18 (20.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend35
Dividend Growth(5Y)16.96%
DP15.09%
Div Incr Years2
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)1.96%
PT rev (3m)4.55%
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 | 1.47 |
EPS(TTM)239.03
EY957.65%
EPS(NY)240.88
Fwd EY965.05%
FCF(TTM)204.53
FCFY819.43%
OCF(TTM)227.85
OCFY912.87%
SpS2208.42
BVpS1373.08
TBVpS900.81
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 | 5.26% | ||
| ROICexgc | 7.99% | ||
| OM | 14.76% | ||
| PM (TTM) | 10.02% | ||
| GM | N/A | ||
| FCFM | 9.26% |
ROA(3y)4.31%
ROA(5y)3.41%
ROE(3y)17.47%
ROE(5y)14.83%
ROIC(3y)4.73%
ROIC(5y)3.3%
ROICexc(3y)4.89%
ROICexc(5y)3.43%
ROICexgc(3y)6.61%
ROICexgc(5y)4.68%
ROCE(3y)5.85%
ROCE(5y)4.08%
ROICexcg growth 3Y29.31%
ROICexcg growth 5Y23.47%
ROICexc growth 3Y31.25%
ROICexc growth 5Y24.09%
OM growth 3Y17.07%
OM growth 5Y16.16%
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 | 61.75% | ||
| Profit Quality | 92.4% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | N/A |
F-Score6
WACC4.23%
ROIC/WACC1.21
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)11.75%
Revenue growth 3Y17.53%
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 1Y5.57%
EBIT growth 3Y37.58%
EBIT growth 5Y32.28%
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%