FAIRFAX FINANCIAL HLDGS LTD (FFH.CA) Stock Fundamental Analysis
Canada - TSX:FFH - CA3039011026 - Common Stock
2291.84 CAD
+42.49 (+1.89%)
FFH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Insurance industry. FFH has an excellent profitability rating, but there are concerns on its financial health. 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.
FFH had positive earnings in each of the past 5 years.
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's Return On Assets of 4.41% is amongst the best of the industry. FFH outperforms 83.75% of its industry peers.
FFH has a better Return On Equity (17.74%) than 96.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.36%, FFH belongs to the top of the industry, outperforming 81.25% 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 above the industry average of 2.46%.
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 of 11.07%. This is in the better half of the industry: FFH outperforms 66.25% of its industry peers.
In the last couple of years the Profit Margin of FFH has remained more or less at the same level.
With a Operating Margin value of 15.63%, FFH perfoms like the industry average, outperforming 52.50% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FFH is destroying value.
Compared to 1 year ago, FFH has less shares outstanding
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
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 68.75% 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 has a Debt to Equity ratio of 0.51. This is in the lower half of the industry: FFH underperforms 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
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 82.50% of its industry peers.
A Quick Ratio of 0.52 indicates that FFH may have some problems paying its short term obligations.
The Quick ratio of FFH (0.52) is better than 82.50% 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.
Looking at the last year, FFH shows a small growth in Revenue. The Revenue has grown by 7.16% 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)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
The Earnings Per Share is expected to decrease by -3.91% on average over the next years.
Based on estimates for the next years, FFH will show a quite strong growth in Revenue. The Revenue will grow by 12.52% on average per year.
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
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.
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
With a Price/Earnings ratio of 7.91, the valuation of FFH can be described as very cheap.
FFH's Price/Earnings ratio is rather expensive when compared to the industry. FFH is more expensive than 83.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. FFH is valued rather cheaply when compared to this.
FFH is valuated reasonably with a Price/Forward Earnings ratio of 9.82.
FFH's Price/Forward Earnings ratio is in line with the industry average.
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.
FFH's Price/Free Cash Flow ratio is rather expensive when compared to the industry. FFH is more expensive than 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.7 | ||
| EV/EBITDA | 6.06 |
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.
FFH has a very decent profitability rating, which 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.
Compared to an average industry Dividend Yield of 4.58, FFH's dividend is way lower than its industry peers. On top of this 95.00% of the companies listed in the same industry pay a better dividend than FFH!
With a Dividend Yield of 0.96, FFH pays less dividend than the S&P500 average, which is at 2.44.
| 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 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 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.