FAIRFAX FINANCIAL HLDGS LTD (FFH.CA) Stock Fundamental Analysis
TSX:FFH • CA3039011026
2316.44 CAD
+10.76 (+0.47%)
Last: Feb 12, 2026, 07:00 PM
FFH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 78 industry peers in the Insurance industry. There are concerns on the financial health of FFH while its profitability can be described as average. FFH has a correct valuation and a medium 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
- The Return On Assets of FFH (4.41%) is better than 79.49% of its industry peers.
- With an excellent Return On Equity value of 17.74%, FFH belongs to the best of the industry, outperforming 98.72% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 5.36%, FFH belongs to the top of the industry, outperforming 83.33% 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
- Looking at the Profit Margin, with a value of 11.07%, FFH is in line with its industry, outperforming 48.72% of the companies in the same industry.
- FFH's Profit Margin has been stable in the last couple of years.
- FFH has a worse Operating Margin (15.63%) than 65.38% of its industry peers.
- In the last couple of years the Operating Margin of FFH 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 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 has less shares outstanding
- FFH has less shares outstanding than it did 5 years ago.
- FFH has a worse debt/assets ratio than last year.
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.
- FFH has a worse Debt to FCF ratio (3.94) than 70.51% of its industry peers.
- FFH has a Debt/Equity ratio of 0.51. This is a neutral value indicating FFH is somewhat dependend on debt financing.
- FFH's Debt to Equity ratio of 0.51 is on the low side compared to the rest of the industry. FFH is outperformed by 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.74
WACC7.28%
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 85.90% of its industry peers.
- FFH has a Quick 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.
- FFH has a Quick ratio of 0.52. This is amongst the best in the industry. FFH outperforms 85.90% 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.
- The Earnings Per Share has been growing by 18.21% on average over the past years. This is quite good.
- FFH shows a small growth in Revenue. In the last year, the Revenue has grown by 7.16%.
- FFH 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)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 Y25.25%
EPS Next 2Y9.94%
EPS Next 3Y7.31%
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
- The Price/Earnings ratio is 8.26, which indicates a very decent 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 69.23% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of FFH to the average of the S&P500 Index (27.67), we can say FFH is valued rather cheaply.
- FFH is valuated reasonably with a Price/Forward Earnings ratio of 8.78.
- Based on the Price/Forward Earnings ratio, FFH is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 27.69. FFH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.26 | ||
| Fwd PE | 8.78 |
4.2 Price Multiples
- 70.51% of the companies in the same industry are more expensive than FFH, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FFH indicates a slightly more expensive valuation: FFH is more expensive than 71.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.11 | ||
| EV/EBITDA | 6.22 |
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.
- FFH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.33
PEG (5Y)0.45
EPS Next 2Y9.94%
EPS Next 3Y7.31%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.93%, FFH is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.53, FFH's dividend is way lower than its industry peers. On top of this 96.15% of the companies listed in the same industry pay a better dividend than FFH!
- With a Dividend Yield of 0.93, FFH pays less dividend than the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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 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 2Y9.94%
EPS Next 3Y7.31%
TSX:FFH (2/12/2026, 7:00:00 PM)
2316.44
+10.76 (+0.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-12 2026-02-12/amc
Inst Owners34.57%
Inst Owner ChangeN/A
Ins Owners2.5%
Ins Owner ChangeN/A
Market Cap55.11B
Revenue(TTM)41.58B
Net Income(TTM)4.57B
Analysts80
Price Target2937.76 (26.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend34.59
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)-0.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.68%
EPS NY rev (1m)1.7%
EPS NY rev (3m)5.2%
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 | 8.26 | ||
| Fwd PE | 8.78 | ||
| P/S | 0.98 | ||
| P/FCF | 12.11 | ||
| P/OCF | 10.71 | ||
| P/B | 1.58 | ||
| P/tB | 2.34 | ||
| EV/EBITDA | 6.22 |
EPS(TTM)280.41
EY12.11%
EPS(NY)263.98
Fwd EY11.4%
FCF(TTM)191.36
FCFY8.26%
OCF(TTM)216.24
OCFY9.33%
SpS2352.41
BVpS1468.98
TBVpS988.68
PEG (NY)0.33
PEG (5Y)0.45
Graham Number3044.36
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
WACC7.28%
ROIC/WACC0.74
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 Y25.25%
EPS Next 2Y9.94%
EPS Next 3Y7.31%
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 25.25% 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%.