FAIRFAX FINANCIAL HLDGS LTD (FFH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FFH - CA3039011026 - Common Stock
2570.25 CAD
-2.5 (-0.1%)
Taking everything into account, FFH scores 5 out of 10 in our fundamental rating. FFH was compared to 81 industry peers in the Insurance industry. FFH has a medium profitability rating, but doesn't score so well on its financial health evaluation. FFH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year FFH was profitable.
- In the past year FFH had a positive cash flow from operations.
- FFH had positive earnings in each of the past 5 years.
- The reported operating cash flow has been mixed in the past 5 years: FFH reported negative operating cash flow in multiple years.
1.2 Ratios
- FFH has a Return On Assets of 4.41%. This is amongst the best in the industry. FFH outperforms 80.25% of its industry peers.
- FFH has a Return On Equity of 17.74%. This is amongst the best in the industry. FFH outperforms 98.77% of its industry peers.
- With an excellent Return On Invested Capital value of 5.36%, FFH belongs to the best of the industry, outperforming 83.95% of the companies in the same industry.
- FFH had an Average Return On Invested Capital over the past 3 years of 4.77%. This is in line with the industry average of 2.99%.
- The last Return On Invested Capital (5.36%) for FFH 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
- With a Profit Margin value of 11.07%, FFH perfoms like the industry average, outperforming 50.62% of the companies in the same industry.
- In the last couple of years the Profit Margin of FFH has remained more or less at the same level.
- The Operating Margin of FFH (15.63%) is worse than 64.20% of its industry peers.
- FFH'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
- FFH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- FFH has less shares outstanding than it did 1 year ago.
- FFH has less shares outstanding than it did 5 years ago.
- FFH has a worse debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of FFH is 3.94, which is a good value as it means it would take FFH, 3.94 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.94, FFH is doing worse than 67.90% of the companies in the same industry.
- A Debt/Equity ratio of 0.51 indicates that FFH is somewhat dependend on debt financing.
- FFH has a worse Debt to Equity ratio (0.51) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.75
WACC7.17%
2.3 Liquidity
- A Current Ratio of 0.52 indicates that FFH may have some problems paying its short term obligations.
- The Current ratio of FFH (0.52) is better than 83.95% of its industry peers.
- A Quick Ratio of 0.52 indicates that FFH may have some problems paying its short term obligations.
- FFH has a Quick ratio of 0.52. This is amongst the best in the industry. FFH outperforms 83.95% 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 has grown by an impressive 26.47% over the past year.
- Measured over the past years, FFH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.21% on average per year.
- Looking at the last year, FFH shows a small growth in Revenue. The Revenue has grown by 7.16% in the last year.
- The Revenue has been growing by 13.88% on average over the past years. This is quite good.
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
- FFH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.91% yearly.
- FFH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.52% yearly.
EPS Next Y23.15%
EPS Next 2Y9.39%
EPS Next 3Y7.52%
EPS Next 5Y-3.91%
Revenue Next Year4.39%
Revenue Next 2Y3.96%
Revenue Next 3Y3.7%
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
- A Price/Earnings ratio of 8.94 indicates a reasonable valuation of FFH.
- Compared to the rest of the industry, the Price/Earnings ratio of FFH indicates a slightly more expensive valuation: FFH is more expensive than 66.67% of the companies listed in the same industry.
- FFH is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 9.59, which indicates a very decent valuation of FFH.
- FFH's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. FFH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FFH is valued a bit cheaper than 71.60% of the companies in the same industry.
- 69.14% of the companies in the same industry are cheaper than FFH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.1 | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
- FFH's 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 may justify a higher PE ratio.
PEG (NY)0.39
PEG (5Y)0.49
EPS Next 2Y9.39%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.84%, FFH is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.60, FFH's dividend is way lower than its industry peers. On top of this 95.06% of the companies listed in the same industry pay a better dividend than FFH!
- With a Dividend Yield of 0.84, FFH pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
- The dividend of FFH is nicely growing with an annual growth rate of 16.82%!
- FFH has been paying a dividend for at least 10 years, so it has a reliable track record.
- FFH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.82%
Div Incr Years1
Div Non Decr Years20
5.3 Sustainability
- FFH pays out 18.53% of its income as dividend. This is a sustainable payout ratio.
DP18.53%
EPS Next 2Y9.39%
EPS Next 3Y7.52%
TSX:FFH (1/15/2026, 7:00:00 PM)
2570.25
-2.5 (-0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-11 2026-02-11/amc
Inst Owners34.57%
Inst Owner ChangeN/A
Ins Owners2.5%
Ins Owner ChangeN/A
Market Cap61.15B
Revenue(TTM)41.58B
Net Income(TTM)4.57B
Analysts80
Price Target2937.76 (14.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend35.14
Dividend Growth(5Y)16.82%
DP18.53%
Div Incr Years1
Div Non Decr Years20
Ex-Date01-15 2026-01-15 (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)0.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.67%
EPS NY rev (1m)0%
EPS NY rev (3m)3.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-19.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 9.59 | ||
| P/S | 1.07 | ||
| P/FCF | 13.1 | ||
| P/OCF | 11.59 | ||
| P/B | 1.71 | ||
| P/tB | 2.54 | ||
| EV/EBITDA | 6.7 |
EPS(TTM)287.49
EY11.19%
EPS(NY)267.95
Fwd EY10.42%
FCF(TTM)196.19
FCFY7.63%
OCF(TTM)221.7
OCFY8.63%
SpS2411.84
BVpS1506.1
TBVpS1013.66
PEG (NY)0.39
PEG (5Y)0.49
Graham Number3121.25
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
WACC7.17%
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)26.47%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%22.1%
EPS Next Y23.15%
EPS Next 2Y9.39%
EPS Next 3Y7.52%
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.CA FAQ
Can you provide the ChartMill fundamental rating for FAIRFAX FINANCIAL HLDGS LTD?
ChartMill assigns a fundamental rating of 5 / 10 to FFH.CA.
Can you provide the valuation status for FAIRFAX FINANCIAL HLDGS LTD?
ChartMill assigns a valuation rating of 5 / 10 to FAIRFAX FINANCIAL HLDGS LTD (FFH.CA). This can be considered as Fairly Valued.
How profitable is FAIRFAX FINANCIAL HLDGS LTD (FFH.CA) stock?
FAIRFAX FINANCIAL HLDGS LTD (FFH.CA) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for FFH stock?
The Earnings per Share (EPS) of FAIRFAX FINANCIAL HLDGS LTD (FFH.CA) is expected to grow by 23.15% in the next year.
Is the dividend of FAIRFAX FINANCIAL HLDGS LTD sustainable?
The dividend rating of FAIRFAX FINANCIAL HLDGS LTD (FFH.CA) is 5 / 10 and the dividend payout ratio is 18.53%.