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 80 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 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-K was profitable.
In the past year FFH-PR-K had a positive cash flow from operations.
FFH-PR-K had positive earnings in each of the past 5 years.
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 88.75% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.12%, FFH-PR-K belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
FFH-PR-K's Return On Invested Capital of 5.10% is fine compared to the rest of the industry. FFH-PR-K outperforms 76.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FFH-PR-K is in line with the industry average of 2.83%.
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
FFH-PR-K's Profit Margin of 10.02% is in line compared to the rest of the industry. FFH-PR-K outperforms 58.75% of its industry peers.
FFH-PR-K's Profit Margin has been stable in the last couple of years.
FFH-PR-K has a Operating Margin of 14.76%. This is amonst the worse of the industry: FFH-PR-K underperforms 92.50% of its industry peers.
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
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.
With a Debt to FCF ratio value of 3.28, FFH-PR-K is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.49 indicates that FFH-PR-K is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.49, FFH-PR-K is doing worse than 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.21
WACC4.22%
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 better Current ratio (0.52) than 85.00% 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.
FFH-PR-K has a Quick ratio of 0.52. This is amongst the best in the industry. FFH-PR-K outperforms 85.00% 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.
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.
The Revenue has grown by 9.22% in the past year. This is quite good.
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)9.22%
Revenue growth 3Y17.53%
Revenue growth 5Y13.88%
Sales Q2Q%-2.66%
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 Year28.73%
Revenue Next 2Y17.18%
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
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 91.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.22, FFH-PR-K is valued rather cheaply.
With a Price/Forward Earnings ratio of 0.10, the valuation of FFH-PR-K can be described as very cheap.
FFH-PR-K's Price/Forward Earnings ratio is rather cheap when compared to the industry. FFH-PR-K is cheaper than 95.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.86. FFH-PR-K is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.1 | ||
| Fwd PE | 0.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FFH-PR-K indicates a rather cheap valuation: FFH-PR-K is cheaper than 93.75% of the companies listed in the same industry.
76.25% of the companies in the same industry are more expensive than FFH-PR-K, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.12 | ||
| EV/EBITDA | 1.46 |
4.3 Compensation for Growth
FFH-PR-K has a very decent profitability rating, which 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 Yield of 1.00%.
With a Dividend Yield of 1.00, FFH-PR-K pays less dividend than the industry average, which is at 4.38. 93.75% of the companies listed in the same industry pay a better dividend than FFH-PR-K!
With a Dividend Yield of 1.00, FFH-PR-K pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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 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 (5/2/2025, 7:00:00 PM)
24.75
+0.09 (+0.36%)
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 Cap599.69M
Analysts78.18
Price Target29.35 (18.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend34.97
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)-2.36%
PT rev (3m)5.18%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-21.52%
EPS NY rev (1m)0.26%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-2.03%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)7.58%
Revenue NY rev (3m)17.74%
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)238.96
EY965.49%
EPS(NY)240.81
Fwd EY972.95%
FCF(TTM)204.47
FCFY826.14%
OCF(TTM)227.78
OCFY920.34%
SpS2207.75
BVpS1372.67
TBVpS900.54
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
WACC4.22%
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)9.22%
Revenue growth 3Y17.53%
Revenue growth 5Y13.88%
Sales Q2Q%-2.66%
Revenue Next Year28.73%
Revenue Next 2Y17.18%
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%