FAIRFAX FINANCIAL HLDGS LTD (FFH-U.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FFH-U - CA3039011026 - Common Stock
1616.14 USD
-3.86 (-0.24%)
We assign a fundamental rating of 5 out of 10 to FFH-U. FFH-U was compared to 82 industry peers in the Insurance industry. FFH-U has an excellent profitability rating, but there are concerns on its financial health. FFH-U has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FFH-U was profitable.
In the past year FFH-U had a positive cash flow from operations.
FFH-U had positive earnings in each of the past 5 years.
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 better Return On Assets (4.41%) than 95.06% of its industry peers.
FFH-U has a better Return On Equity (17.74%) than 96.30% of its industry peers.
FFH-U has a Return On Invested Capital of 5.36%. This is amongst the best in the industry. FFH-U outperforms 83.95% of its industry peers.
FFH-U had an Average Return On Invested Capital over the past 3 years of 4.77%. This is above the industry average of 2.47%.
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 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's Profit Margin of 11.07% is fine compared to the rest of the industry. FFH-U outperforms 76.54% of its industry peers.
FFH-U's Profit Margin has been stable in the last couple of years.
FFH-U has a Operating Margin (15.63%) which is in line with its industry peers.
In the last couple of years the Operating Margin of FFH-U has grown nicely.
| 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.
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
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.
The Debt to FCF ratio of FFH-U (3.94) is worse than 69.14% 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 67.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.77
WACC6.92%
2.3 Liquidity
A Current Ratio of 0.52 indicates that FFH-U may have some problems paying its short term obligations.
With an excellent Current ratio value of 0.52, FFH-U belongs to the best of the industry, outperforming 83.95% of the companies in the same industry.
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 83.95% 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.81%.
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)8.81%
Revenue growth 3Y17.52%
Revenue growth 5Y13.88%
Sales Q2Q%-7.31%
3.2 Future
FFH-U is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.91% yearly.
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 Y19.99%
EPS Next 2Y1.66%
EPS Next 3Y2.88%
EPS Next 5Y-3.91%
Revenue Next Year30.1%
Revenue Next 2Y17.21%
Revenue Next 3Y18.16%
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.
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 5.54, the valuation of FFH-U can be described as very cheap.
The rest of the industry has a similar Price/Earnings ratio as FFH-U.
When comparing the Price/Earnings ratio of FFH-U to the average of the S&P500 Index (26.39), we can say FFH-U is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.88, the valuation of FFH-U can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FFH-U is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.84. FFH-U is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 6.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FFH-U is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FFH-U is valued expensively inside the industry as 82.72% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.2 | ||
| EV/EBITDA | 4.46 |
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)0.28
PEG (5Y)0.3
EPS Next 2Y1.66%
EPS Next 3Y2.88%
5. Dividend
5.1 Amount
FFH-U has a Yearly Dividend Yield of 3.33%.
Compared to an average industry Dividend Yield of 3.40, FFH-U is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.87, FFH-U pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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 2Y1.66%
EPS Next 3Y2.88%
TSX:FFH-U (10/30/2025, 7:00:00 PM)
1616.14
-3.86 (-0.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners39.53%
Inst Owner ChangeN/A
Ins Owners2.45%
Ins Owner ChangeN/A
Market Cap38.84B
Revenue(TTM)38.71B
Net Income(TTM)4.57B
Analysts80
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend35.71
Dividend Growth(5Y)16.82%
DP18.53%
Div Incr Years0
Div Non Decr Years3
Ex-Date
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)11.67%
EPS NQ rev (3m)27.2%
EPS NY rev (1m)0.78%
EPS NY rev (3m)23.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 6.88 | ||
| P/S | 0.67 | ||
| P/FCF | 8.2 | ||
| P/OCF | 7.26 | ||
| P/B | 1.07 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 4.46 |
EPS(TTM)291.72
EY18.05%
EPS(NY)234.83
Fwd EY14.53%
FCF(TTM)197.09
FCFY12.2%
OCF(TTM)222.72
OCFY13.78%
SpS2422.9
BVpS1513
TBVpS1018.31
PEG (NY)0.28
PEG (5Y)0.3
Graham Number3151.33
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC6.92%
ROIC/WACC0.77
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 Y19.99%
EPS Next 2Y1.66%
EPS Next 3Y2.88%
EPS Next 5Y-3.91%
Revenue 1Y (TTM)8.81%
Revenue growth 3Y17.52%
Revenue growth 5Y13.88%
Sales Q2Q%-7.31%
Revenue Next Year30.1%
Revenue Next 2Y17.21%
Revenue Next 3Y18.16%
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 FAQ
What is the fundamental rating for FFH-U stock?
ChartMill assigns a fundamental rating of 6 / 10 to FFH-U.CA.
What is the valuation status for FFH-U stock?
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 7 / 10.
Can you provide the PE and PB ratios for FFH-U stock?
The Price/Earnings (PE) ratio for FAIRFAX FINANCIAL HLDGS LTD (FFH-U.CA) is 5.54 and the Price/Book (PB) ratio is 1.07.
Can you provide the expected EPS growth for FFH-U stock?
The Earnings per Share (EPS) of FAIRFAX FINANCIAL HLDGS LTD (FFH-U.CA) is expected to grow by 19.99% in the next year.