FAIRFAX FINANCIAL HLDGS LTD (FFH-U.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:FFH-U • CA3039011026
1667.5 USD
+51.36 (+3.18%)
Last: Jan 22, 2026, 07:00 PM
Overall FFH-U gets a fundamental rating of 5 out of 10. We evaluated FFH-U against 80 industry peers in the Insurance industry. FFH-U has a medium profitability rating, but doesn't score so well on its financial health evaluation. FFH-U is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year FFH-U was profitable.
- FFH-U had a positive operating cash flow in the past year.
- In the past 5 years FFH-U has always been profitable.
- In multiple years FFH-U reported negative operating cash flow during the last 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.41%, FFH-U is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- FFH-U has a Return On Equity of 17.74%. This is amongst the best in the industry. FFH-U outperforms 98.75% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.36%, FFH-U belongs to the top of the industry, outperforming 83.75% of the companies in the same industry.
- FFH-U had an Average Return On Invested Capital over the past 3 years of 4.77%. This is in line with the industry average of 3.04%.
- The last Return On Invested Capital (5.36%) for FFH-U is above the 3 year average (4.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 17.74% | ||
| ROIC | 5.36% |
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-U has a Profit Margin of 11.07%. This is comparable to the rest of the industry: FFH-U outperforms 50.00% of its industry peers.
- In the last couple of years the Profit Margin of FFH-U has remained more or less at the same level.
- FFH-U's Operating Margin of 15.63% is on the low side compared to the rest of the industry. FFH-U is outperformed by 63.75% of its industry peers.
- FFH-U's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.63% | ||
| PM (TTM) | 11.07% | ||
| GM | N/A |
OM growth 3Y17.05%
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
- FFH-U has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- FFH-U has less shares outstanding than it did 1 year ago.
- FFH-U has less shares outstanding than it did 5 years ago.
- FFH-U has a worse debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of FFH-U is 3.94, which is a good value as it means it would take FFH-U, 3.94 years of fcf income to pay off all of its debts.
- FFH-U's Debt to FCF ratio of 3.94 is on the low side compared to the rest of the industry. FFH-U is outperformed by 68.75% of its industry peers.
- A Debt/Equity ratio of 0.51 indicates that FFH-U is somewhat dependend on debt financing.
- FFH-U's Debt to Equity ratio of 0.51 is on the low side compared to the rest of the industry. FFH-U is outperformed by 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.76
WACC7.07%
2.3 Liquidity
- FFH-U has a Current Ratio of 0.52. This is a bad value and indicates that FFH-U 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-U belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
- FFH-U has a Quick Ratio of 0.52. This is a bad value and indicates that FFH-U is not financially healthy enough and could expect problems in meeting its short term obligations.
- FFH-U has a better Quick ratio (0.52) than 86.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
- FFH-U shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.47%, which is quite impressive.
- FFH-U shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.21% yearly.
- FFH-U shows a small growth in Revenue. In the last year, the Revenue has grown by 7.16%.
- Measured over the past years, FFH-U shows a quite strong growth in Revenue. The Revenue has been growing by 13.88% on average per year.
EPS 1Y (TTM)26.47%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%22.1%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y17.52%
Revenue growth 5Y13.88%
Sales Q2Q%-28.01%
3.2 Future
- The Earnings Per Share is expected to decrease by -3.91% on average over the next years.
- FFH-U is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.52% yearly.
EPS Next Y25.25%
EPS Next 2Y9.94%
EPS Next 3Y7.31%
EPS Next 5Y-3.91%
Revenue Next Year4.39%
Revenue Next 2Y3.96%
Revenue Next 3Y3.7%
Revenue Next 5Y12.52%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- The Price/Earnings ratio is 5.96, which indicates a rather cheap valuation of FFH-U.
- The rest of the industry has a similar Price/Earnings ratio as FFH-U.
- FFH-U is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 6.33 indicates a rather cheap valuation of FFH-U.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FFH-U is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, FFH-U is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.96 | ||
| Fwd PE | 6.33 |
4.2 Price Multiples
- 71.25% of the companies in the same industry are more expensive than FFH-U, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, FFH-U is valued a bit more expensive than the industry average as 66.25% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.74 | ||
| EV/EBITDA | 4.71 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of FFH-U may justify a higher PE ratio.
PEG (NY)0.24
PEG (5Y)0.33
EPS Next 2Y9.94%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.97%, FFH-U is not a good candidate for dividend investing.
- With a Dividend Yield of 0.97, FFH-U pays less dividend than the industry average, which is at 3.51. 90.00% of the companies listed in the same industry pay a better dividend than FFH-U!
- Compared to an average S&P500 Dividend Yield of 1.83, FFH-U's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
- On average, the dividend of FFH-U grows each year by 16.82%, which is quite nice.
- FFH-U has been paying a dividend for over 5 years, so it has already some track record.
- FFH-U has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)16.82%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- 18.53% of the earnings are spent on dividend by FFH-U. This is a low number and sustainable payout ratio.
DP18.53%
EPS Next 2Y9.94%
EPS Next 3Y7.31%
FAIRFAX FINANCIAL HLDGS LTD / FFH-U.CA FAQ
What is the fundamental rating for FFH-U stock?
ChartMill assigns a fundamental rating of 5 / 10 to FFH-U.CA.
Can you provide the valuation status for FAIRFAX FINANCIAL HLDGS LTD?
ChartMill assigns a valuation rating of 6 / 10 to FAIRFAX FINANCIAL HLDGS LTD (FFH-U.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for FAIRFAX FINANCIAL HLDGS LTD?
FAIRFAX FINANCIAL HLDGS LTD (FFH-U.CA) has a profitability rating of 6 / 10.
What is the valuation of FAIRFAX FINANCIAL HLDGS LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FAIRFAX FINANCIAL HLDGS LTD (FFH-U.CA) is 5.96 and the Price/Book (PB) ratio is 1.14.
What is the earnings growth outlook for FAIRFAX FINANCIAL HLDGS LTD?
The Earnings per Share (EPS) of FAIRFAX FINANCIAL HLDGS LTD (FFH-U.CA) is expected to grow by 25.25% in the next year.