FAIRFAX FINANCIAL HLDGS LTD (FFH.CA) Stock Fundamental Analysis
TSX:FFH - Toronto Stock Exchange - CA3039011026 - Common Stock - Currency: CAD
FFH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FFH had positive earnings in the past year.
In the past year FFH had a positive cash flow from operations.
In the past 5 years FFH has always been profitable.
In multiple years FFH reported negative operating cash flow during the last 5 years.
1.2 Ratios
FFH's Return On Assets of 4.01% is amongst the best of the industry. FFH outperforms 87.65% of its industry peers.
FFH has a better Return On Equity (16.12%) than 93.83% of its industry peers.
FFH's Return On Invested Capital of 5.10% is amongst the best of the industry. FFH outperforms 80.25% of its industry peers.
FFH had an Average Return On Invested Capital over the past 3 years of 4.77%. This is above the industry average of 2.73%.
The 3 year average ROIC (4.77%) for FFH is below the current ROIC(5.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 16.12% | ||
| ROIC | 5.1% |
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 10.03%, FFH is in line with its industry, outperforming 59.26% 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.
Looking at the Operating Margin, with a value of 14.77%, FFH is doing worse than 82.72% of the companies in the same industry.
In the last couple of years the Operating Margin of FFH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.77% | ||
| PM (TTM) | 10.03% | ||
| GM | N/A |
OM growth 3Y17.05%
OM growth 5Y16.15%
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.
FFH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FFH has less shares outstanding
FFH has a worse debt/assets ratio than last year.
2.2 Solvency
FFH has a debt to FCF ratio of 3.28. This is a good value and a sign of high solvency as FFH would need 3.28 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.28, FFH is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
FFH has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
FFH's Debt to Equity ratio of 0.49 is on the low side compared to the rest of the industry. FFH is outperformed by 67.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | N/A |
ROIC/WACC0.63
WACC8.09%
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 80.25% of its industry peers.
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 80.25% 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 11.74%, which is quite good.
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 shows a quite strong growth in Revenue. The Revenue has grown by 11.32% in the last year.
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)11.74%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%38.55%
Revenue 1Y (TTM)11.32%
Revenue growth 3Y17.52%
Revenue growth 5Y13.88%
Sales Q2Q%-18.6%
3.2 Future
Based on estimates for the next years, FFH will show a decrease in Earnings Per Share. The EPS will decrease by -5.80% on average per year.
The Revenue is expected to grow by 12.47% on average over the next years. This is quite good.
EPS Next Y-2.62%
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
EPS Next 5Y-5.8%
Revenue Next Year28.13%
Revenue Next 2Y17.21%
Revenue Next 3Y18.16%
Revenue Next 5Y12.47%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 10.29, which indicates a very decent valuation of FFH.
FFH's Price/Earnings ratio is rather expensive when compared to the industry. FFH is more expensive than 81.48% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.86. FFH is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.21, the valuation of FFH can be described as reasonable.
Based on the Price/Forward Earnings ratio, FFH is valued a bit more expensive than the industry average as 62.96% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 21.43. FFH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 10.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FFH is valued a bit cheaper than 67.90% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FFH indicates a rather expensive valuation: FFH more expensive than 91.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.03 | ||
| EV/EBITDA | 8.07 |
4.3 Compensation for Growth
FFH has a very decent profitability rating, which may justify a higher PE ratio.
FFH's earnings are expected to decrease with -3.62% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.42%, FFH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.01, FFH's dividend is way lower than its industry peers. On top of this 85.19% of the companies listed in the same industry pay a better dividend than FFH!
FFH's Dividend Yield is a higher than the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
5.2 History
The dividend of FFH is nicely growing with an annual growth rate of 17.11%!
FFH has paid a dividend for at least 10 years, which is a reliable track record.
FFH has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)17.11%
Div Incr Years1
Div Non Decr Years20
5.3 Sustainability
FFH pays out 15.10% of its income as dividend. This is a sustainable payout ratio.
DP15.1%
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
TSX:FFH (6/26/2025, 7:00:00 PM)
2435.57
-6.59 (-0.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners37.64%
Inst Owner ChangeN/A
Ins Owners2.45%
Ins Owner ChangeN/A
Market Cap59.01B
Analysts78.18
Price Target2682.91 (10.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Yearly Dividend34.94
Dividend Growth(5Y)17.11%
DP15.1%
Div Incr Years1
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.1%
Min EPS beat(2)23.14%
Max EPS beat(2)29.06%
EPS beat(4)3
Avg EPS beat(4)10.96%
Min EPS beat(4)-25.87%
Max EPS beat(4)29.06%
EPS beat(8)6
Avg EPS beat(8)12.63%
EPS beat(12)10
Avg EPS beat(12)134.85%
EPS beat(16)14
Avg EPS beat(16)129.12%
Revenue beat(2)2
Avg Revenue beat(2)29.57%
Min Revenue beat(2)19.64%
Max Revenue beat(2)39.5%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)0.52%
PT rev (3m)8.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 10.21 | ||
| P/S | 1.11 | ||
| P/FCF | 12.03 | ||
| P/OCF | 10.79 | ||
| P/B | 1.79 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 8.07 |
EPS(TTM)236.69
EY9.72%
EPS(NY)238.52
Fwd EY9.79%
FCF(TTM)202.52
FCFY8.32%
OCF(TTM)225.63
OCFY9.26%
SpS2184.38
BVpS1359.64
TBVpS892
PEG (NY)N/A
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 16.12% | ||
| ROCE | 6.3% | ||
| ROIC | 5.1% | ||
| ROICexc | 5.25% | ||
| ROICexgc | 7.99% | ||
| OM | 14.77% | ||
| PM (TTM) | 10.03% | ||
| GM | N/A | ||
| FCFM | 9.27% |
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%
ROICexcg growth 3Y29.29%
ROICexcg growth 5Y23.46%
ROICexc growth 3Y31.23%
ROICexc growth 5Y24.08%
OM growth 3Y17.05%
OM growth 5Y16.15%
PM growth 3Y-10.7%
PM growth 5Y0.68%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.28 | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | 54.24% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 10.09 | ||
| Cash Conversion | 61.78% | ||
| Profit Quality | 92.4% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | N/A |
F-Score5
WACC8.09%
ROIC/WACC0.63
Cap/Depr(3y)57.82%
Cap/Depr(5y)49.57%
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)11.74%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%38.55%
EPS Next Y-2.62%
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
EPS Next 5Y-5.8%
Revenue 1Y (TTM)11.32%
Revenue growth 3Y17.52%
Revenue growth 5Y13.88%
Sales Q2Q%-18.6%
Revenue Next Year28.13%
Revenue Next 2Y17.21%
Revenue Next 3Y18.16%
Revenue Next 5Y12.47%
EBIT growth 1Y5.51%
EBIT growth 3Y37.56%
EBIT growth 5Y32.27%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y748.28%
FCF growth 3Y-17.08%
FCF growth 5Y28.19%
OCF growth 1Y10341%
OCF growth 3Y-15.59%
OCF growth 5Y24.13%