FAIRFAX FINANCIAL HLDGS LTD (FFH.CA) Stock Fundamental Analysis
Canada - TSX:FFH - CA3039011026 - Common Stock
2291.84 CAD
+42.49 (+1.89%)
Taking everything into account, FFH scores 5 out of 10 in our fundamental rating. FFH was compared to 80 industry peers in the Insurance industry. FFH has an excellent profitability rating, but there are concerns on its financial health. FFH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FFH was profitable.
FFH had a positive operating cash flow in the past year.
Each year in the past 5 years FFH has been profitable.
In multiple years FFH reported negative operating cash flow during the last 5 years.
1.2 Ratios
FFH has a Return On Assets of 4.41%. This is amongst the best in the industry. FFH outperforms 83.75% of its industry peers.
Looking at the Return On Equity, with a value of 17.74%, FFH belongs to the top of the industry, outperforming 96.25% of the companies in the same industry.
The Return On Invested Capital of FFH (5.36%) is better than 81.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FFH is above the industry average of 2.46%.
The 3 year average ROIC (4.77%) for FFH 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
Looking at the Profit Margin, with a value of 11.07%, FFH is in the better half of the industry, outperforming 66.25% of the companies in the same industry.
FFH's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 15.63%, FFH perfoms like the industry average, outperforming 52.50% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FFH is destroying value.
The number of shares outstanding for FFH has been reduced compared to 1 year ago.
Compared to 5 years ago, FFH has less shares outstanding
Compared to 1 year ago, FFH has a worse debt to assets ratio.
2.2 Solvency
FFH has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as FFH would need 3.94 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.94, FFH is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.51 indicates that FFH is somewhat dependend on debt financing.
The Debt to Equity ratio of FFH (0.51) is worse than 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.75
WACC7.15%
2.3 Liquidity
FFH has a Current Ratio of 0.52. This is a bad value and indicates that FFH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.52, FFH belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
A Quick Ratio of 0.52 indicates that FFH may have some problems paying its short term obligations.
With an excellent Quick ratio value of 0.52, FFH belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
FFH 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 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.21% yearly.
FFH shows a small growth in Revenue. In the last year, the Revenue has grown by 7.16%.
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%-7.31%
3.2 Future
Based on estimates for the next years, FFH will show a decrease in Earnings Per Share. The EPS will decrease by -3.91% on average per year.
The Revenue is expected to grow by 12.52% on average over the next years. This is quite good.
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
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
Based on the Price/Earnings ratio of 7.91, the valuation of FFH can be described as very cheap.
83.75% of the companies in the same industry are cheaper than FFH, based on the Price/Earnings ratio.
FFH is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
FFH is valuated reasonably with a Price/Forward Earnings ratio of 9.82.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FFH is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of FFH to the average of the S&P500 Index (34.59), we can say FFH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
70.00% of the companies in the same industry are more expensive than FFH, based on the Enterprise Value to EBITDA ratio.
85.00% 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 | 11.7 | ||
| EV/EBITDA | 6.06 |
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 may justify a higher PE ratio.
PEG (NY)0.4
PEG (5Y)0.43
EPS Next 2Y1.66%
EPS Next 3Y2.88%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, FFH is not a good candidate for dividend investing.
With a Dividend Yield of 0.96, FFH pays less dividend than the industry average, which is at 4.58. 95.00% of the companies listed in the same industry pay a better dividend than FFH!
Compared to an average S&P500 Dividend Yield of 2.44, FFH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
The dividend of FFH is nicely growing with an annual growth rate of 16.82%!
FFH has paid a dividend for at least 10 years, which is a reliable track record.
FFH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)16.82%
Div Incr Years1
Div Non Decr Years20
5.3 Sustainability
18.53% of the earnings are spent on dividend by FFH. This is a low number and sustainable payout ratio.
DP18.53%
EPS Next 2Y1.66%
EPS Next 3Y2.88%
TSX:FFH (11/14/2025, 7:00:00 PM)
2291.84
+42.49 (+1.89%)
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 Cap55.07B
Revenue(TTM)41.58B
Net Income(TTM)4.57B
Analysts80
Price Target2963.26 (29.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend35.48
Dividend Growth(5Y)16.82%
DP18.53%
Div Incr Years1
Div Non Decr Years20
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)1.16%
PT rev (3m)0.58%
EPS NQ rev (1m)11.67%
EPS NQ rev (3m)12.85%
EPS NY rev (1m)0.78%
EPS NY rev (3m)23.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)21.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 9.82 | ||
| P/S | 0.95 | ||
| P/FCF | 11.7 | ||
| P/OCF | 10.36 | ||
| P/B | 1.52 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 6.06 |
EPS(TTM)289.9
EY12.65%
EPS(NY)233.36
Fwd EY10.18%
FCF(TTM)195.86
FCFY8.55%
OCF(TTM)221.32
OCFY9.66%
SpS2407.75
BVpS1503.54
TBVpS1011.95
PEG (NY)0.4
PEG (5Y)0.43
Graham Number3131.65
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
WACC7.15%
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 Y19.99%
EPS Next 2Y1.66%
EPS Next 3Y2.88%
EPS Next 5Y-3.91%
Revenue 1Y (TTM)7.16%
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.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.
What is the valuation status for FFH stock?
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 7 / 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.CA) is 7.91 and the Price/Book (PB) ratio is 1.52.
What is the earnings growth outlook for FAIRFAX FINANCIAL HLDGS LTD?
The Earnings per Share (EPS) of FAIRFAX FINANCIAL HLDGS LTD (FFH.CA) is expected to grow by 19.99% in the next year.