FAIRFAX FINANCIAL HLDGS LTD (FFH-U.CA) Fundamental Analysis & Valuation

TSX:FFH-U • CA3039011026

Current stock price

1667.5 USD
+51.36 (+3.18%)
Last:

This FFH-U.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. FFH-U.CA Profitability Analysis

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.
  • FFH-U had positive earnings in each of the past 5 years.
  • In multiple years FFH-U reported negative operating cash flow during the last 5 years.
FFH-U.CA Yearly Net Income VS EBIT VS OCF VS FCFFFH-U.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B -4B 6B

1.2 Ratios

  • FFH-U's Return On Assets of 4.41% is fine compared to the rest of the industry. FFH-U outperforms 80.00% of its industry peers.
  • Looking at the Return On Equity, with a value of 17.74%, FFH-U belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
  • The Return On Invested Capital of FFH-U (5.36%) is better than 83.75% of its industry peers.
  • 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 3.17%.
  • The 3 year average ROIC (4.77%) for FFH-U is below the current ROIC(5.36%), indicating increased profibility in the last year.
Industry RankSector 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%
FFH-U.CA Yearly ROA, ROE, ROICFFH-U.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15 20

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.
  • Looking at the Operating Margin, with a value of 15.63%, FFH-U is doing worse than 63.75% of the companies in the same industry.
  • In the last couple of years the Operating Margin of FFH-U has grown nicely.
Industry RankSector 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
FFH-U.CA Yearly Profit, Operating, Gross MarginsFFH-U.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15

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3

2. FFH-U.CA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FFH-U 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.
  • Compared to 1 year ago, FFH-U has a worse debt to assets ratio.
FFH-U.CA Yearly Shares OutstandingFFH-U.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M
FFH-U.CA Yearly Total Debt VS Total AssetsFFH-U.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.2 Solvency

  • FFH-U has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as FFH-U would need 3.94 years to pay back of all of its debts.
  • FFH-U has a worse Debt to FCF ratio (3.94) than 68.75% of its industry peers.
  • A Debt/Equity ratio of 0.51 indicates that FFH-U is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.51, FFH-U is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF 3.94
Altman-Z N/A
ROIC/WACC0.76
WACC7.07%
FFH-U.CA Yearly LT Debt VS Equity VS FCFFFH-U.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B

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.
  • FFH-U has a better Current ratio (0.52) than 86.25% of its industry peers.
  • 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 Quick ratio of 0.52. This is amongst the best in the industry. FFH-U outperforms 86.25% of its industry peers.
Industry RankSector Rank
Current Ratio 0.52
Quick Ratio 0.52
FFH-U.CA Yearly Current Assets VS Current LiabilitesFFH-U.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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5

3. FFH-U.CA Growth Analysis

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.
  • The Earnings Per Share has been growing by 18.21% on average over the past years. This is quite good.
  • The Revenue has been growing slightly by 7.16% in the past year.
  • 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

  • Based on estimates for the next years, FFH-U will show a decrease in Earnings Per Share. The EPS will decrease by -3.91% on average per year.
  • Based on estimates for the next years, FFH-U will show a quite strong growth in Revenue. The Revenue will grow by 12.52% on average per year.
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

  • 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.
FFH-U.CA Yearly Revenue VS EstimatesFFH-U.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B 40B
FFH-U.CA Yearly EPS VS EstimatesFFH-U.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 50 100 150 200

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6

4. FFH-U.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 5.96, the valuation of FFH-U can be described as very cheap.
  • FFH-U's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 25.96. FFH-U is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 6.33, the valuation of FFH-U can be described as very cheap.
  • The rest of the industry has a similar Price/Forward Earnings ratio as FFH-U.
  • FFH-U is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 5.96
Fwd PE 6.33
FFH-U.CA Price Earnings VS Forward Price EarningsFFH-U.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 66.25% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.74
EV/EBITDA 4.71
FFH-U.CA Per share dataFFH-U.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 500 1K 1.5K 2K

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%

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3

5. FFH-U.CA Dividend Analysis

5.1 Amount

  • FFH-U has a yearly dividend return of 0.97%, which is pretty low.
  • With a Dividend Yield of 0.97, FFH-U pays less dividend than the industry average, which is at 4.82. 90.00% of the companies listed in the same industry pay a better dividend than FFH-U!
  • With a Dividend Yield of 0.97, FFH-U pays less dividend than the S&P500 average, which is at 1.91.
Industry RankSector 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
FFH-U.CA Yearly Dividends per shareFFH-U.CA Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 2026 5 10

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%
FFH-U.CA Yearly Income VS Free CF VS DividendFFH-U.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B -4B 6B
FFH-U.CA Dividend Payout.FFH-U.CA Dividend Payout, showing the Payout Ratio.FFH-U.CA Dividend Payout.PayoutRetained Earnings

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FFH-U.CA Fundamentals: All Metrics, Ratios and Statistics

FAIRFAX FINANCIAL HLDGS LTD

TSX:FFH-U (1/22/2026, 7:00:00 PM)

1667.5

+51.36 (+3.18%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)11-06
Earnings (Next)02-12
Inst Owners34.57%
Inst Owner ChangeN/A
Ins Owners2.5%
Ins Owner ChangeN/A
Market Cap39.67B
Revenue(TTM)41.58B
Net Income(TTM)4.57B
Analysts80
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.97%
Yearly Dividend34.23
Dividend Growth(5Y)16.82%
DP18.53%
Div Incr Years0
Div Non Decr Years3
Ex-Date01-15
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.86%
Min EPS beat(2)15.05%
Max EPS beat(2)38.68%
EPS beat(4)4
Avg EPS beat(4)26.48%
Min EPS beat(4)15.05%
Max EPS beat(4)38.68%
EPS beat(8)7
Avg EPS beat(8)18.56%
EPS beat(12)10
Avg EPS beat(12)20.16%
EPS beat(16)14
Avg EPS beat(16)109.42%
Revenue beat(2)1
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-4.02%
Max Revenue beat(2)0.76%
Revenue beat(4)3
Avg Revenue beat(4)13.97%
Min Revenue beat(4)-4.02%
Max Revenue beat(4)39.5%
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%
EPS NQ rev (3m)11.67%
EPS NY rev (1m)4.38%
EPS NY rev (3m)5.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-19.76%
Revenue NY rev (3m)-19.76%
Valuation
Industry RankSector Rank
PE 5.96
Fwd PE 6.33
P/S 0.71
P/FCF 8.74
P/OCF 7.73
P/B 1.14
P/tB 1.69
EV/EBITDA 4.71
EPS(TTM)279.65
EY16.77%
EPS(NY)263.27
Fwd EY15.79%
FCF(TTM)190.84
FCFY11.44%
OCF(TTM)215.65
OCFY12.93%
SpS2346.04
BVpS1465
TBVpS986.01
PEG (NY)0.24
PEG (5Y)0.33
Graham Number3036.11
Profitability
Industry RankSector Rank
ROA 4.41%
ROE 17.74%
ROCE 6.62%
ROIC 5.36%
ROICexc 5.83%
ROICexgc 9.04%
OM 15.63%
PM (TTM) 11.07%
GM N/A
FCFM 8.13%
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%
ROICexgc growth 3Y29.29%
ROICexgc growth 5Y23.47%
ROICexc growth 3Y31.23%
ROICexc growth 5Y24.09%
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
F-Score6
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF 3.94
Debt/EBITDA 1.8
Cap/Depr 48.34%
Cap/Sales 1.06%
Interest Coverage 250
Cash Conversion 51.59%
Profit Quality 73.45%
Current Ratio 0.52
Quick Ratio 0.52
Altman-Z N/A
F-Score6
WACC7.07%
ROIC/WACC0.76
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)26.47%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%22.1%
EPS Next Y25.25%
EPS Next 2Y9.94%
EPS Next 3Y7.31%
EPS Next 5Y-3.91%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y17.52%
Revenue growth 5Y13.88%
Sales Q2Q%-28.01%
Revenue Next Year4.39%
Revenue Next 2Y3.96%
Revenue Next 3Y3.7%
Revenue Next 5Y12.52%
EBIT growth 1Y13.64%
EBIT growth 3Y37.56%
EBIT growth 5Y32.28%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y250.03%
FCF growth 3Y-17.08%
FCF growth 5Y28.19%
OCF growth 1Y321.91%
OCF growth 3Y-15.59%
OCF growth 5Y24.13%

FAIRFAX FINANCIAL HLDGS LTD / FFH-U.CA Fundamental Analysis 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.