FAIRFAX FINANCIAL HLDGS LTD (FFH.CA) Stock Fundamental Analysis
TSX:FFH • CA3039011026
2380.98 CAD
+15.98 (+0.68%)
Last: Feb 18, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to FFH. FFH was compared to 76 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.
- FFH had a positive operating cash flow in the past year.
- In the past 5 years FFH has always been profitable.
- 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
- With a decent Return On Assets value of 4.41%, FFH is doing good in the industry, outperforming 78.95% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 17.74%, FFH belongs to the top of the industry, outperforming 98.68% 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 82.89% 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 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
- FFH's Profit Margin of 11.07% is in line compared to the rest of the industry. FFH outperforms 47.37% of its industry peers.
- FFH's Profit Margin has been stable in the last couple of years.
- FFH has a Operating Margin of 15.63%. This is in the lower half of the industry: FFH underperforms 67.11% 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.
- FFH has less shares outstanding than it did 1 year ago.
- FFH has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for FFH is higher compared to a year ago.
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.
- Looking at the Debt to FCF ratio, with a value of 3.94, FFH is doing worse than 69.74% of the companies in the same industry.
- A Debt/Equity ratio of 0.51 indicates that 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 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.73
WACC7.29%
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 85.53% 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 85.53% 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.
- 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
- 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.
- 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
- 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.
- 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
- FFH is valuated reasonably with a Price/Earnings ratio of 8.44.
- Based on the Price/Earnings ratio, FFH is valued a bit more expensive than the industry average as 68.42% of the companies are valued more cheaply.
- FFH is valuated cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 8.96 indicates a reasonable valuation of FFH.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FFH indicates a slightly more expensive valuation: FFH is more expensive than 60.53% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.16. FFH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.44 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FFH is valued a bit cheaper than the industry average as 69.74% of the companies are valued more expensively.
- 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 69.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.18 | ||
| EV/EBITDA | 6.28 |
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)0.33
PEG (5Y)0.46
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 3.93, FFH's dividend is way lower than its industry peers. On top of this 96.05% of the companies listed in the same industry pay a better dividend than FFH!
- Compared to an average S&P500 Dividend Yield of 1.85, FFH's dividend is way lower than the S&P500 average.
| 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
- FFH pays out 18.53% of its income as dividend. This is a sustainable payout ratio.
DP18.53%
EPS Next 2Y9.94%
EPS Next 3Y7.31%
TSX:FFH (2/18/2026, 7:00:00 PM)
2380.98
+15.98 (+0.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)04-29 2026-04-29
Inst Owners34.57%
Inst Owner ChangeN/A
Ins Owners2.5%
Ins Owner ChangeN/A
Market Cap55.79B
Revenue(TTM)41.58B
Net Income(TTM)4.57B
Analysts78.18
Price Target2937.76 (23.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend34.48
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)0%
EPS NY rev (1m)1.7%
EPS NY rev (3m)4.38%
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 | 8.44 | ||
| Fwd PE | 8.96 | ||
| P/S | 0.99 | ||
| P/FCF | 12.18 | ||
| P/OCF | 10.78 | ||
| P/B | 1.59 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 6.28 |
EPS(TTM)282.16
EY11.85%
EPS(NY)265.63
Fwd EY11.16%
FCF(TTM)195.52
FCFY8.21%
OCF(TTM)220.93
OCFY9.28%
SpS2403.51
BVpS1500.89
TBVpS1010.16
PEG (NY)0.33
PEG (5Y)0.46
Graham Number3086.84
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
WACC7.29%
ROIC/WACC0.73
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%.