FAIRFAX FINANCIAL HLDGS LTD (FFH-U.CA) Stock Fundamental Analysis
Canada - TSX:FFH-U - CA3039011026 - Common Stock
1616.14 USD
-63.42 (-3.78%)
FFH-U gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 80 industry peers in the Insurance industry. FFH-U scores excellent on profitability, but there are concerns on its financial health. FFH-U has a decent growth rate and is not valued too expensively. Finally FFH-U also has an excellent dividend rating.
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.
Each year in the past 5 years FFH-U has 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
With an excellent Return On Assets value of 4.41%, FFH-U belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
With an excellent Return On Equity value of 17.74%, FFH-U belongs to the best of the industry, outperforming 93.83% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.36%, FFH-U belongs to the top of the industry, outperforming 81.48% 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 above the industry average of 2.29%.
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 has a Profit Margin of 11.07%. This is in the better half of the industry: FFH-U outperforms 74.07% 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 in line with its industry, outperforming 51.85% of the companies in the same industry.
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
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.
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.
The Debt to FCF ratio of FFH-U (3.94) is worse than 70.37% of its industry peers.
FFH-U has a Debt/Equity ratio of 0.51. This is a neutral value indicating FFH-U is somewhat dependend on debt financing.
The Debt to Equity ratio of FFH-U (0.51) is worse than 69.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.75
WACC7.12%
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.
With an excellent Current ratio value of 0.52, FFH-U belongs to the best of the industry, outperforming 82.72% 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 has a Quick ratio of 0.52. This is amongst the best in the industry. FFH-U outperforms 82.72% 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 20.98%, 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 grown by 9.34% in the past year. This is quite good.
The Revenue has been growing by 13.88% on average over the past years. This is quite good.
EPS 1Y (TTM)20.98%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%65.71%
Revenue 1Y (TTM)9.34%
Revenue growth 3Y17.52%
Revenue growth 5Y13.88%
Sales Q2Q%13.49%
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 Y19.06%
EPS Next 2Y5.51%
EPS Next 3Y6.8%
EPS Next 5Y-3.91%
Revenue Next Year30.1%
Revenue Next 2Y17.21%
Revenue Next 3Y18.16%
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
With a Price/Earnings ratio of 5.86, the valuation of FFH-U can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of FFH-U indicates a slightly more expensive valuation: FFH-U is more expensive than 61.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.19, FFH-U is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.45, 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 22.50, FFH-U is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 6.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FFH-U is valued a bit cheaper than the industry average as 67.90% of the companies are valued more expensively.
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 85.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.28 | ||
| EV/EBITDA | 4.74 |
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)0.31
PEG (5Y)0.32
EPS Next 2Y5.51%
EPS Next 3Y6.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.19%, FFH-U is a good candidate for dividend investing.
FFH-U's Dividend Yield is rather good when compared to the industry average which is at 3.56. FFH-U pays more dividend than 93.83% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, FFH-U pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
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
FFH-U pays out 18.53% of its income as dividend. This is a sustainable payout ratio.
DP18.53%
EPS Next 2Y5.51%
EPS Next 3Y6.8%
TSX:FFH-U (10/30/2025, 7:00:00 PM)
1616.14
-63.42 (-3.78%)
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)41.27B
Net Income(TTM)4.57B
Analysts81.82
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
Yearly Dividend35.34
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)13.9%
EPS NQ rev (3m)13.9%
EPS NY rev (1m)22.27%
EPS NY rev (3m)22.27%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)1.54%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 6.45 | ||
| P/S | 0.67 | ||
| P/FCF | 8.28 | ||
| P/OCF | 7.33 | ||
| P/B | 1.08 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 4.74 |
EPS(TTM)275.61
EY17.05%
EPS(NY)250.38
Fwd EY15.49%
FCF(TTM)195.09
FCFY12.07%
OCF(TTM)220.45
OCFY13.64%
SpS2398.3
BVpS1497.64
TBVpS1007.97
PEG (NY)0.31
PEG (5Y)0.32
Graham NumberN/A
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
WACC7.12%
ROIC/WACC0.75
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)20.98%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%65.71%
EPS Next Y19.06%
EPS Next 2Y5.51%
EPS Next 3Y6.8%
EPS Next 5Y-3.91%
Revenue 1Y (TTM)9.34%
Revenue growth 3Y17.52%
Revenue growth 5Y13.88%
Sales Q2Q%13.49%
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 5 / 10 to FFH-U.CA.
What is the valuation status for FFH-U stock?
ChartMill assigns a valuation rating of 5 / 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.
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 5.86 and the Price/Book (PB) ratio is 1.08.
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 19.06% in the next year.