FAIRFAX FINANCIAL HLDGS LTD (FFH.CA) Stock Fundamental Analysis
Canada - TSX:FFH - CA3039011026 - Common Stock
2312.19 CAD
-15.15 (-0.65%)
Overall FFH gets a fundamental rating of 5 out of 10. We evaluated FFH against 79 industry peers in the Insurance industry. While FFH has a great profitability rating, there are quite some concerns on its financial health. FFH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year FFH was profitable.
FFH had a positive operating cash flow in the past year.
FFH had positive earnings in each of the past 5 years.
In multiple years FFH reported negative operating cash flow during the last 5 years.
1.2 Ratios
FFH has a better Return On Assets (4.41%) than 94.94% of its industry peers.
FFH has a Return On Equity of 17.74%. This is amongst the best in the industry. FFH outperforms 96.20% of its industry peers.
FFH has a Return On Invested Capital of 5.36%. This is amongst the best in the industry. FFH outperforms 83.54% 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 2.21%.
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 has a better Profit Margin (11.07%) than 75.95% of its industry peers.
FFH's Profit Margin has been stable in the last couple of years.
FFH has a Operating Margin (15.63%) which is comparable to the rest of the 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
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
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.
With a Debt to FCF ratio value of 3.94, FFH is not doing good in the industry: 70.89% of the companies in the same industry are doing better.
FFH has a Debt/Equity ratio of 0.51. This is a neutral value indicating FFH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, FFH is not doing good in the industry: 69.62% of the companies in the same industry are doing better.
| 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.
With an excellent Current ratio value of 0.52, FFH belongs to the best of the industry, outperforming 83.54% of the companies in the same industry.
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 83.54% 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 20.98%, which is quite impressive.
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 9.34% 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)20.98%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%65.71%
Revenue 1Y (TTM)9.34%
Revenue growth 3Y17.52%
Revenue growth 5Y13.88%
Sales Q2Q%13.49%
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 Y19.06%
EPS Next 2Y5.51%
EPS Next 3Y6.8%
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
FFH is valuated reasonably with a Price/Earnings ratio of 8.35.
Based on the Price/Earnings ratio, FFH is valued expensively inside the industry as 84.81% of the companies are valued cheaper.
When comparing the Price/Earnings ratio of FFH to the average of the S&P500 Index (27.69), we can say FFH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.19, the valuation of FFH can be described as reasonable.
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 60.76% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.18. FFH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 9.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FFH is valued a bit cheaper than the industry average as 69.62% 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 87.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.79 | ||
| EV/EBITDA | 6.14 |
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)0.44
PEG (5Y)0.46
EPS Next 2Y5.51%
EPS Next 3Y6.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, FFH is not a good candidate for dividend investing.
With a Dividend Yield of 0.92, FFH pays less dividend than the industry average, which is at 3.80. 96.20% of the companies listed in the same industry pay a better dividend than FFH!
With a Dividend Yield of 0.92, FFH pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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 2Y5.51%
EPS Next 3Y6.8%
TSX:FFH (10/20/2025, 7:00:00 PM)
2312.19
-15.15 (-0.65%)
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 Cap55.56B
Analysts81.82
Price Target2929.26 (26.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend35.52
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%
PT rev (3m)9.18%
EPS NQ rev (1m)5.96%
EPS NQ rev (3m)-4.13%
EPS NY rev (1m)4.83%
EPS NY rev (3m)22.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 9.19 | ||
| P/S | 0.96 | ||
| P/FCF | 11.79 | ||
| P/OCF | 10.44 | ||
| P/B | 1.54 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 6.14 |
EPS(TTM)276.96
EY11.98%
EPS(NY)251.61
Fwd EY10.88%
FCF(TTM)196.05
FCFY8.48%
OCF(TTM)221.54
OCFY9.58%
SpS2410.06
BVpS1504.99
TBVpS1012.92
PEG (NY)0.44
PEG (5Y)0.46
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%
ROICexcg growth 3Y29.29%
ROICexcg 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)20.98%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%65.71%
EPS Next Y19.06%
EPS Next 2Y5.51%
EPS Next 3Y6.8%
EPS Next 5Y-3.91%
Revenue 1Y (TTM)9.34%
Revenue growth 3Y17.52%
Revenue growth 5Y13.88%
Sales Q2Q%13.49%
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%