FAIRFAX FINANCIAL HLDGS LTD (FFH-U.CA) Stock Fundamental Analysis
TSX:FFH-U - Toronto Stock Exchange - CA3039011026 - Common Stock - Currency: USD
FFH-U gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FFH-U had positive earnings in the past year.
FFH-U had a positive operating cash flow in the past year.
In the past 5 years FFH-U has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: FFH-U reported negative operating cash flow in multiple years.
1.2 Ratios
FFH-U has a Return On Assets of 4.01%. This is amongst the best in the industry. FFH-U outperforms 86.59% of its industry peers.
FFH-U has a Return On Equity of 16.12%. This is amongst the best in the industry. FFH-U outperforms 92.68% of its industry peers.
FFH-U has a Return On Invested Capital of 5.10%. This is amongst the best in the industry. FFH-U outperforms 86.59% of its industry peers.
FFH-U had an Average Return On Invested Capital over the past 3 years of 4.73%. This is in line with the industry average of 2.73%.
The last Return On Invested Capital (5.10%) for FFH-U 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
Looking at the Profit Margin, with a value of 10.02%, FFH-U is in line with its industry, outperforming 57.32% of the companies in the same industry.
In the last couple of years the Profit Margin of FFH-U has remained more or less at the same level.
FFH-U has a worse Operating Margin (14.76%) than 82.93% of its industry peers.
FFH-U's Operating Margin has improved in the last couple of years.
| 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 below the Cost of Capital (WACC), so FFH-U is destroying value.
Compared to 1 year ago, FFH-U has less shares outstanding
The number of shares outstanding for FFH-U has been reduced compared to 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 3.28, which is a good value as it means it would take FFH-U, 3.28 years of fcf income to pay off all of its debts.
FFH-U has a worse Debt to FCF ratio (3.28) than 60.98% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that FFH-U is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.49, FFH-U is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | N/A |
ROIC/WACC0.74
WACC6.86%
2.3 Liquidity
A Current Ratio of 0.52 indicates that FFH-U may have some problems paying its short term obligations.
FFH-U has a better Current ratio (0.52) than 87.80% of its industry peers.
A Quick Ratio of 0.52 indicates that FFH-U may have some problems paying its short term obligations.
FFH-U's Quick ratio of 0.52 is amongst the best of the industry. FFH-U outperforms 87.80% 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 for FFH-U have decreased by -7.08% in the last year.
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.
The Revenue has grown by 9.22% in the past year. This is quite good.
FFH-U shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.88% yearly.
EPS 1Y (TTM)-7.08%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%-4.63%
Revenue 1Y (TTM)9.22%
Revenue growth 3Y17.53%
Revenue growth 5Y13.88%
Sales Q2Q%-20.01%
3.2 Future
The Earnings Per Share is expected to decrease by -5.80% on average over the next years.
The Revenue is expected to grow by 12.47% on average over the next years. This is quite good.
EPS Next Y-2.62%
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
EPS Next 5Y-5.8%
Revenue Next Year19.66%
Revenue Next 2Y12.09%
Revenue Next 3Y14.94%
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.
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
Based on the Price/Earnings ratio of 7.53, the valuation of FFH-U can be described as very cheap.
Based on the Price/Earnings ratio, FFH-U is valued more expensive than 80.49% of the companies in the same industry.
When comparing the Price/Earnings ratio of FFH-U to the average of the S&P500 Index (26.46), we can say FFH-U is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.74, the valuation of FFH-U can be described as very cheap.
FFH-U's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.30, FFH-U is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FFH-U is valued a bit cheaper than 68.29% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FFH-U indicates a rather expensive valuation: FFH-U more expensive than 86.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.24 | ||
| EV/EBITDA | 5.96 |
4.3 Compensation for Growth
The decent profitability rating of FFH-U may justify a higher PE ratio.
FFH-U'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)0.41
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
5. Dividend
5.1 Amount
FFH-U has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.05, FFH-U pays less dividend than the industry average, which is at 4.24. 80.49% of the companies listed in the same industry pay a better dividend than FFH-U!
Compared to an average S&P500 Dividend Yield of 2.38, FFH-U's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of FFH-U is nicely growing with an annual growth rate of 16.96%!
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)16.96%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
FFH-U 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%
TSX:FFH-U (5/26/2025, 7:00:00 PM)
1666.48
+333.3 (+25%)
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 Cap40.56B
Analysts78.18
Price Target1565.13 (-6.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend35.14
Dividend Growth(5Y)16.96%
DP15.09%
Div Incr Years0
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-22.07%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)-2.03%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)9.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 7.74 | ||
| P/S | 0.76 | ||
| P/FCF | 8.24 | ||
| P/OCF | 7.39 | ||
| P/B | 1.23 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 5.96 |
EPS(TTM)221.25
EY13.28%
EPS(NY)215.44
Fwd EY12.93%
FCF(TTM)202.36
FCFY12.14%
OCF(TTM)225.44
OCFY13.53%
SpS2185.01
BVpS1358.53
TBVpS891.26
PEG (NY)N/A
PEG (5Y)0.41
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
WACC6.86%
ROIC/WACC0.74
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)-7.08%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%-4.63%
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%-20.01%
Revenue Next Year19.66%
Revenue Next 2Y12.09%
Revenue Next 3Y14.94%
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%