FAIRFAX FINANCIAL HLDGS LTD (FFH-U.CA) Stock Fundamental Analysis
Canada - TSX:FFH-U - CA3039011026 - Common Stock
1616.14 USD
-3.86 (-0.24%)
FFH-U gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Insurance industry. While FFH-U has a great profitability rating, there are quite some concerns on its financial health. FFH-U is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FFH-U had positive earnings in the past year.
In the past year FFH-U had a positive cash flow from operations.
Each year in the past 5 years FFH-U has been profitable.
In multiple years FFH-U reported negative operating cash flow during the last 5 years.
1.2 Ratios
FFH-U's Return On Assets of 4.41% is amongst the best of the industry. FFH-U outperforms 95.06% of its industry peers.
FFH-U has a better Return On Equity (17.74%) than 96.30% 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 83.95% 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 2.46%.
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 in the better half of the industry: FFH-U outperforms 76.54% 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.
The Operating Margin of FFH-U (15.63%) is comparable to the rest of the industry.
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
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.
The number of shares outstanding for FFH-U has been reduced compared to 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.
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 69.14% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that FFH-U is somewhat dependend on debt financing.
The Debt to Equity ratio of FFH-U (0.51) is worse than 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.
FFH-U has a Current ratio of 0.52. This is amongst the best in the industry. FFH-U outperforms 83.95% 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 has a Quick ratio of 0.52. This is amongst the best in 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.
The Earnings Per Share has been growing by 18.21% on average over the past years. This is quite good.
Looking at the last year, FFH-U shows a quite strong growth in Revenue. The Revenue has grown by 8.81% in the last year.
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)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.
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 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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FFH-U is valuated cheaply with a Price/Earnings ratio of 5.54.
The rest of the industry has a similar Price/Earnings ratio as FFH-U.
FFH-U's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.45.
FFH-U is valuated cheaply with a Price/Forward Earnings ratio of 6.88.
FFH-U's Price/Forward Earnings is on the same level as the industry average.
FFH-U is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 6.88 |
4.2 Price Multiples
70.37% 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 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
FFH-U's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FFH-U has a very decent profitability rating, which 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%.
FFH-U's Dividend Yield is slightly below the industry average, which is at 4.58.
FFH-U's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| 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
FFH-U pays out 18.53% of its income as dividend. This is a 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.