TSX:FFH

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Fairfax Financial Holdings

Executive Summary

Fairfax Financial Holdings Limited, together with its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally.


Snowflake Analysis

Reasonable growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has Fairfax Financial Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FFH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

FFH

5.6%

CA Insurance

2.5%

CA Market


1 Year Return

-32.1%

FFH

-5.7%

CA Insurance

-3.9%

CA Market

Return vs Industry: FFH underperformed the Canadian Insurance industry which returned -5.7% over the past year.

Return vs Market: FFH underperformed the Canadian Market which returned -3.9% over the past year.


Shareholder returns

FFHIndustryMarket
7 Day-2.0%5.6%2.5%
30 Day1.2%9.1%7.0%
90 Day16.8%15.0%11.4%
1 Year-30.7%-32.1%-1.3%-5.7%-0.5%-3.9%
3 Year-27.2%-31.6%1.6%-10.3%12.6%1.8%
5 Year-27.9%-34.9%14.6%-5.3%33.8%13.4%

Price Volatility Vs. Market

How volatile is Fairfax Financial Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fairfax Financial Holdings undervalued compared to its fair value and its price relative to the market?

0.71x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: FFH (CA$411.17) is trading above our estimate of fair value (CA$259.17)

Significantly Below Fair Value: FFH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FFH is unprofitable, so we can't compare its PE Ratio to the CA Insurance industry average.

PE vs Market: FFH is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FFH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FFH is good value based on its PB Ratio (0.7x) compared to the CA Insurance industry average (0.9x).


Next Steps

Future Growth

How is Fairfax Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

131.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: FFH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FFH's is expected to become profitable in the next 3 years.

Revenue vs Market: FFH's revenue (12.8% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: FFH's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FFH's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Fairfax Financial Holdings performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FFH is currently unprofitable.

Growing Profit Margin: FFH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FFH is unprofitable, but has reduced losses over the past 5 years at a rate of 15.7% per year.

Accelerating Growth: Unable to compare FFH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FFH is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-2.7%).


Return on Equity

High ROE: FFH has a negative Return on Equity (-2.35%), as it is currently unprofitable.


Next Steps

Financial Health

How is Fairfax Financial Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: FFH's short term assets ($27.6B) exceed its short term liabilities ($13.1B).

Long Term Liabilities: FFH's short term assets ($27.6B) do not cover its long term liabilities ($41.0B).


Debt to Equity History and Analysis

Debt Level: FFH's debt to equity ratio (45.5%) is considered high.

Reducing Debt: FFH's debt to equity ratio has increased from 30.4% to 45.5% over the past 5 years.

Debt Coverage: FFH's debt is not well covered by operating cash flow (18.3%).

Interest Coverage: Insufficient data to determine if FFH's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Fairfax Financial Holdings's current dividend yield, its reliability and sustainability?

3.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FFH's dividend (3.25%) is higher than the bottom 25% of dividend payers in the Canadian market (1.76%).

High Dividend: FFH's dividend (3.25%) is low compared to the top 25% of dividend payers in the Canadian market (5.8%).


Stability and Growth of Payments

Stable Dividend: FFH's dividends per share have been stable in the past 10 years.

Growing Dividend: FFH's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: FFH is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: FFH's dividends in 3 years are forecast to be well covered by earnings (39% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

V. Watsa (70 yo)

35.58yrs

Tenure

US$786,120

Compensation

Mr. V. Prem Watsa founded Fairfax Financial Holdings Limited in 1985 and has been its Chairman and Chief Executive Officer since 1985. Mr. Watsa serves as the President of 1109519 Ontario Limited, 810679 O ...


CEO Compensation Analysis

Compensation vs Market: V.'s total compensation ($USD587.78K) is below average for companies of similar size in the Canadian market ($USD3.92M).

Compensation vs Earnings: V.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
V. Watsa
Founder35.58yrsUS$786.12k8.85%
$ 963.0m
Jennifer Allen
VP & CFO1yrUS$1.46m0.0049%
$ 537.3k
Peter Clarke
VP & COO1.5yrsUS$3.04m0.0078%
$ 852.8k
John Varnell
Vice President of Corporate Development8yrsUS$1.06m0.011%
$ 1.2m
Vinodh Loganadhan
Vice President of Administrative Servicesno datano data0.012%
$ 1.3m
Derek Bulas
Associate Vice President of Legalno datano datano data
Eric Salsberg
VP of Corporate Affairs & Corporate Secretary8.58yrsUS$942.68k0.32%
$ 35.0m
Ronald Schokking
VP & Treasurer14.5yrsUS$877.90k0.12%
$ 12.7m
Andrew Barnard
President of Fairfax Insurance Groupno datano data0.19%
$ 21.0m
Bruno Camargo
President of Fairfax Brasilno datano datano data
Wade Sebastian R. Burton
President & Chief Investment Officer of Hamblin Watsa Investment Counselno datano data0.0034%
$ 367.6k
Kari Van Gundy
President & CEO of Zenith National Insurance Corp.no datano datano data

8.3yrs

Average Tenure

63yo

Average Age

Experienced Management: FFH's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
V. Watsa
Founder35.58yrsUS$786.12k8.85%
$ 963.0m
William Weldon
Director0.33yrno data0.00016%
$ 17.4k
Anthony Griffiths
Independent Director18.58yrsUS$171.66k0.025%
$ 2.8m
Brandon Sweitzer
Independent Director16.58yrsUS$164.31k0.0076%
$ 824.5k
Timothy Price
Independent Director10.33yrsUS$92.36k0.0064%
$ 699.4k
Robert Gunn
Independent Director13.33yrsUS$187.58k0.0038%
$ 411.2k
R. McFarland
Lead Independent Director0.33yrUS$302.67k0.0038%
$ 411.2k
Christine McLean
Director2.33yrsUS$84.39k0.0035%
$ 385.1k
Lauren Templeton
Independent Director3.33yrsUS$114.94k0.095%
$ 10.4m
Benjamin Watsa
Director5.33yrsUS$85.39k0.0020%
$ 217.5k
Karen Jurjevich
Independent Director3.33yrsUS$85.72kno data

5.3yrs

Average Tenure

70.5yo

Average Age

Experienced Board: FFH's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FFH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fairfax Financial Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fairfax Financial Holdings Limited
  • Ticker: FFH
  • Exchange: TSX
  • Founded: 1951
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: CA$10.877b
  • Shares outstanding: 26.45m
  • Website: https://www.fairfax.ca

Number of Employees


Location

  • Fairfax Financial Holdings Limited
  • 95 Wellington Street West
  • Suite 800
  • Toronto
  • Ontario
  • M5J 2N7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FFHTSX (The Toronto Stock Exchange)YesSubordinate Voting SharesCACADJan 1975
FRFH.FOTCPK (Pink Sheets LLC)YesSubordinate Voting SharesUSUSDJan 1975
FFXDB (Deutsche Boerse AG)YesSubordinate Voting SharesDEEURJan 1975
FFH NBMV (Bolsa Mexicana de Valores)YesSubordinate Voting SharesMXMXNJan 1975
0KV5LSE (London Stock Exchange)YesSubordinate Voting SharesGBCADJan 1975
FFH.PRCTSX (The Toronto Stock Exchange)PFD SHS CCACADOct 2009
FXFL.FOTCPK (Pink Sheets LLC)PFD SHS CUSUSDOct 2009
FFH.PRETSX (The Toronto Stock Exchange)PFD SHS SER ECACADFeb 2010
FRFG.FOTCPK (Pink Sheets LLC)PFD SHS SER EUSUSDFeb 2010
FFH.PRGTSX (The Toronto Stock Exchange)PFD SHS SER GCACADJul 2010
FFH.PRITSX (The Toronto Stock Exchange)RESET CV PFD-ICACADOct 2010
FRFX.FOTCPK (Pink Sheets LLC)RESET CV PFD-IUSUSDOct 2010
FFH.PRKTSX (The Toronto Stock Exchange)CUM 5Y RT PFD KCACADMar 2012
FRFF.FOTCPK (Pink Sheets LLC)CUM 5Y RT PFD KUSUSDMar 2012
FRFZ.FOTCPK (Pink Sheets LLC)PFD SHS SER DUSUSDJan 2015
FFH.PRDTSX (The Toronto Stock Exchange)PFD SHS SER DCACADJan 2015
FFH.PRMTSX (The Toronto Stock Exchange)PFD SHS 5YR SR MCACADMar 2015
FFH.PRFTSX (The Toronto Stock Exchange)PFD SHS SER FCACADApr 2015
FFH.PRHTSX (The Toronto Stock Exchange)PFD SHS SER HCACADOct 2015
FAXX.FOTCPK (Pink Sheets LLC)PFD SHS SER HUSUSDOct 2015
FFH.PRJTSX (The Toronto Stock Exchange)PFD SHS SER JCACADJan 2016

Biography

Fairfax Financial Holdings Limited, together with its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and inte ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 00:51
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.