FAIRFAX FINANCIAL HLDGS LTD (FFH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FFH - CA3039011026 - Common Stock
2431.21 CAD
+109.84 (+4.73%)
FFH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Insurance industry. While FFH is still in line with the averages on profitability rating, 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.
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
FFH has a better Return On Assets (4.41%) than 78.05% of its industry peers.
FFH has a better Return On Equity (17.74%) than 96.34% of its industry peers.
FFH's Return On Invested Capital of 5.36% is amongst the best of the industry. FFH outperforms 81.71% 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 2.47%.
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
FFH has a Profit Margin (11.07%) which is in line with 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 64.63% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FFH is destroying value.
Compared to 1 year ago, FFH has less shares outstanding
The number of shares outstanding for FFH has been reduced compared to 5 years ago.
The debt/assets ratio for FFH is higher compared to a year ago.
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.
FFH has a worse Debt to FCF ratio (3.94) than 69.51% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that FFH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, FFH is doing worse than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | N/A |
ROIC/WACC0.75
WACC7.1%
2.3 Liquidity
A Current Ratio of 0.52 indicates that FFH may have some problems paying its short term obligations.
FFH's Current ratio of 0.52 is amongst the best of the industry. FFH outperforms 82.93% 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 better Quick ratio (0.52) than 82.93% of its industry peers.
| 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.
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.
The Revenue has been growing slightly by 7.16% in the past year.
Measured over the past years, FFH shows a quite strong growth in Revenue. The Revenue has been growing by 13.88% on average per year.
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.
The Revenue is expected to grow by 12.52% on average over the next years. This is quite good.
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
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
A Price/Earnings ratio of 8.52 indicates a reasonable valuation of FFH.
85.37% of the companies in the same industry are cheaper than FFH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.34. FFH is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.14, the valuation of FFH can be described as very reasonable.
Based on the Price/Forward Earnings ratio, FFH is valued a bit more expensive than 60.98% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, FFH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.52 | ||
| Fwd PE | 9.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FFH is valued a bit cheaper than the industry average as 69.51% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FFH indicates a rather expensive valuation: FFH more expensive than 87.80% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.48 | ||
| EV/EBITDA | 6.42 |
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)0.37
PEG (5Y)0.47
EPS Next 2Y9.39%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
FFH has a yearly dividend return of 0.91%, which is pretty low.
Compared to an average industry Dividend Yield of 4.30, FFH's dividend is way lower than its industry peers. On top of this 95.12% of the companies listed in the same industry pay a better dividend than FFH!
Compared to an average S&P500 Dividend Yield of 2.31, FFH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
On average, the dividend of FFH grows each year by 16.82%, which is quite nice.
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 2Y9.39%
EPS Next 3Y7.52%
TSX:FFH (12/8/2025, 7:00:00 PM)
2431.21
+109.84 (+4.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners34.07%
Inst Owner ChangeN/A
Ins Owners2.47%
Ins Owner ChangeN/A
Market Cap57.84B
Revenue(TTM)41.58B
Net Income(TTM)4.57B
Analysts80
Price Target2937.76 (20.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend35.27
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)-0.86%
PT rev (3m)0.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)18.33%
EPS NY rev (1m)2.64%
EPS NY rev (3m)8.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-19.76%
Revenue NY rev (3m)-19.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.52 | ||
| Fwd PE | 9.14 | ||
| P/S | 1.02 | ||
| P/FCF | 12.48 | ||
| P/OCF | 11.04 | ||
| P/B | 1.63 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 6.42 |
EPS(TTM)285.45
EY11.74%
EPS(NY)266.04
Fwd EY10.94%
FCF(TTM)194.8
FCFY8.01%
OCF(TTM)220.12
OCFY9.05%
SpS2394.71
BVpS1495.4
TBVpS1006.46
PEG (NY)0.37
PEG (5Y)0.47
Graham Number3099.09
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
WACC7.1%
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.
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 6 / 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 8.52 and the Price/Book (PB) ratio is 1.63.
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 23.15% in the next year.