FAIRFAX FINL HLDGS LTD - FFHCN 5 1/2 PERP (FFH-PR-J.CA) Stock Fundamental Analysis
TSX:FFH-PR-J - Toronto Stock Exchange - CA3039018393 - Currency: CAD
Overall FFH-PR-J gets a fundamental rating of 5 out of 10. We evaluated FFH-PR-J against 80 industry peers in the Insurance industry. While FFH-PR-J is still in line with the averages on profitability rating, there are concerns on its financial health. FFH-PR-J is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year FFH-PR-J was profitable.
FFH-PR-J had a positive operating cash flow in the past year.
FFH-PR-J had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: FFH-PR-J reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.01%, FFH-PR-J belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
FFH-PR-J has a better Return On Equity (16.12%) than 91.25% of its industry peers.
FFH-PR-J's Return On Invested Capital of 5.10% is fine compared to the rest of the industry. FFH-PR-J outperforms 77.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FFH-PR-J is in line with the industry average of 2.83%.
The last Return On Invested Capital (5.10%) for FFH-PR-J is above the 3 year average (4.73%), which is a sign of increasing profitability.
| 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)4.73%
ROIC(5y)3.3%
1.3 Margins
FFH-PR-J has a Profit Margin of 10.02%. This is comparable to the rest of the industry: FFH-PR-J outperforms 60.00% of its industry peers.
FFH-PR-J's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 14.76%, FFH-PR-J is doing worse than 91.25% of the companies in the same industry.
In the last couple of years the Operating Margin of FFH-PR-J has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.76% | ||
| PM (TTM) | 10.02% | ||
| GM | N/A |
OM growth 3Y17.07%
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) just above the Cost of Capital (WACC), FFH-PR-J is creating some value.
FFH-PR-J has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FFH-PR-J has been reduced compared to 5 years ago.
FFH-PR-J has a worse debt/assets ratio than last year.
2.2 Solvency
FFH-PR-J has a debt to FCF ratio of 3.28. This is a good value and a sign of high solvency as FFH-PR-J would need 3.28 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.28, FFH-PR-J is not doing good in the industry: 66.25% of the companies in the same industry are doing better.
FFH-PR-J has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FFH-PR-J (0.49) is worse than 66.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.28 | ||
| Altman-Z | N/A |
ROIC/WACC1.21
WACC4.2%
2.3 Liquidity
A Current Ratio of 0.52 indicates that FFH-PR-J may have some problems paying its short term obligations.
FFH-PR-J has a Current ratio of 0.52. This is amongst the best in the industry. FFH-PR-J outperforms 86.25% of its industry peers.
FFH-PR-J has a Quick Ratio of 0.52. This is a bad value and indicates that FFH-PR-J is not financially healthy enough and could expect problems in meeting its short term obligations.
FFH-PR-J's Quick ratio of 0.52 is amongst the best of the industry. FFH-PR-J outperforms 86.25% 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 for FFH-PR-J have decreased by -7.08% in the last year.
Measured over the past years, FFH-PR-J 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-PR-J shows a quite strong growth in Revenue. The Revenue has grown by 9.22% in the last year.
The Revenue has been growing by 13.88% on average over the past years. This is quite good.
EPS 1Y (TTM)-7.08%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%-4.63%
Revenue 1Y (TTM)9.22%
Revenue growth 3Y17.53%
Revenue growth 5Y13.88%
Sales Q2Q%-20.01%
3.2 Future
FFH-PR-J is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.80% yearly.
Based on estimates for the next years, FFH-PR-J will show a quite strong growth in Revenue. The Revenue will grow by 12.47% on average per year.
EPS Next Y-2.62%
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
EPS Next 5Y-5.8%
Revenue Next Year28.73%
Revenue Next 2Y17.18%
Revenue Next 3Y18.16%
Revenue Next 5Y12.47%
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
Based on the Price/Earnings ratio of 0.11, the valuation of FFH-PR-J can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of FFH-PR-J indicates a rather cheap valuation: FFH-PR-J is cheaper than 92.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.87. FFH-PR-J is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 0.11, the valuation of FFH-PR-J can be described as very cheap.
96.25% of the companies in the same industry are more expensive than FFH-PR-J, based on the Price/Forward Earnings ratio.
FFH-PR-J is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.11 | ||
| Fwd PE | 0.11 |
4.2 Price Multiples
FFH-PR-J's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FFH-PR-J is cheaper than 95.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FFH-PR-J is valued a bit cheaper than the industry average as 77.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.11 | ||
| EV/EBITDA | 1.46 |
4.3 Compensation for Growth
FFH-PR-J has a very decent profitability rating, which may justify a higher PE ratio.
FFH-PR-J'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)0.01
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
5. Dividend
5.1 Amount
FFH-PR-J has a Yearly Dividend Yield of 1.03%.
Compared to an average industry Dividend Yield of 4.51, FFH-PR-J's dividend is way lower than its industry peers. On top of this 92.50% of the companies listed in the same industry pay a better dividend than FFH-PR-J!
With a Dividend Yield of 1.03, FFH-PR-J pays less dividend than the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
On average, the dividend of FFH-PR-J grows each year by 16.96%, which is quite nice.
FFH-PR-J has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of FFH-PR-J decreased in the last 3 years.
Dividend Growth(5Y)16.96%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
15.09% of the earnings are spent on dividend by FFH-PR-J. This is a low number and sustainable payout ratio.
DP15.09%
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
FAIRFAX FINL HLDGS LTD - FFHCN 5 1/2 PERP
TSX:FFH-PR-J (4/28/2025, 7:00:00 PM)
23.45
+0.05 (+0.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners38.23%
Inst Owner ChangeN/A
Ins Owners4.01%
Ins Owner ChangeN/A
Market Cap568.19M
Analysts78.18
Price Target28.7 (22.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend35.11
Dividend Growth(5Y)16.96%
DP15.09%
Div Incr Years2
Div Non Decr Years2
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)-1.96%
PT rev (3m)12.7%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-22.07%
EPS NY rev (1m)0.26%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)-2.03%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)7.58%
Revenue NY rev (3m)17.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.11 | ||
| Fwd PE | 0.11 | ||
| P/S | 0.01 | ||
| P/FCF | 0.11 | ||
| P/OCF | 0.1 | ||
| P/B | 0.02 | ||
| P/tB | 0.03 | ||
| EV/EBITDA | 1.46 |
EPS(TTM)223.23
EY951.94%
EPS(NY)217.37
Fwd EY926.95%
FCF(TTM)205.1
FCFY874.62%
OCF(TTM)228.49
OCFY974.35%
SpS2214.54
BVpS1376.89
TBVpS903.31
PEG (NY)N/A
PEG (5Y)0.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 16.12% | ||
| ROCE | 6.3% | ||
| ROIC | 5.1% | ||
| ROICexc | 5.26% | ||
| ROICexgc | 7.99% | ||
| OM | 14.76% | ||
| PM (TTM) | 10.02% | ||
| GM | N/A | ||
| FCFM | 9.26% |
ROA(3y)4.31%
ROA(5y)3.41%
ROE(3y)17.47%
ROE(5y)14.83%
ROIC(3y)4.73%
ROIC(5y)3.3%
ROICexc(3y)4.89%
ROICexc(5y)3.43%
ROICexgc(3y)6.61%
ROICexgc(5y)4.68%
ROCE(3y)5.85%
ROCE(5y)4.08%
ROICexcg growth 3Y29.31%
ROICexcg growth 5Y23.47%
ROICexc growth 3Y31.25%
ROICexc growth 5Y24.09%
OM growth 3Y17.07%
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 | 0.49 | ||
| Debt/FCF | 3.28 | ||
| Debt/EBITDA | 1.82 | ||
| Cap/Depr | 54.23% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 10.09 | ||
| Cash Conversion | 61.75% | ||
| Profit Quality | 92.4% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | N/A |
F-Score6
WACC4.2%
ROIC/WACC1.21
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)-7.08%
EPS 3Y9.62%
EPS 5Y18.21%
EPS Q2Q%-4.63%
EPS Next Y-2.62%
EPS Next 2Y4.02%
EPS Next 3Y-3.62%
EPS Next 5Y-5.8%
Revenue 1Y (TTM)9.22%
Revenue growth 3Y17.53%
Revenue growth 5Y13.88%
Sales Q2Q%-20.01%
Revenue Next Year28.73%
Revenue Next 2Y17.18%
Revenue Next 3Y18.16%
Revenue Next 5Y12.47%
EBIT growth 1Y5.57%
EBIT growth 3Y37.58%
EBIT growth 5Y32.28%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y747.72%
FCF growth 3Y-17.08%
FCF growth 5Y28.19%
OCF growth 1Y10236.8%
OCF growth 3Y-15.59%
OCF growth 5Y24.13%