Fairfax Africa Holdings Corporation, an investment holding company, focuses on investing in public and private equity securities and debt instruments of African businesses or other businesses with customers, suppliers, or business primarily conducted in, or dependent on, Africa.
The last earnings update was 52 days ago.
Discounted Cash Flow Calculation for BST:3UD using Excess Returns Model Model
The calculations below outline how an intrinsic value for Fairfax Africa Holdings is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
Fairfax Africa Holdings
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Fairfax Africa Holdings's
is considered below, and whether this is a fair price.
Price based on past earnings
Fairfax Africa Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
Fairfax Africa Holdings's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Fairfax Africa Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Fairfax Africa Holdings's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Fairfax Africa Holdings
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Fairfax Africa Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
Fairfax Africa Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Fairfax Africa Holdings's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Fairfax Africa Holdings's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Fairfax Africa Holdings has no debt, it does not need to be covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Mr. Michael Wilkerson is Chairman of the Board at Consolidated Infrastructure Group Limited since January 28, 2019. He serves as Chief Executive Officer of Fairfax Africa Holdings Corporation. He serves as a Director at Fairfax Africa Holdings Corporation since 2016. Mr. Wilkerson served as the Managing Partner of AgriGroupe Limited, which he co-founded in 2013. Mr. Wilkerson served as Global Co-Head of the Consumer, Food & Retail Group and as a Managing Director in the Financial Institutions Group at Lazard, one of the world's preeminent financial advisory and asset management firms. Mr. Wilkerson was also a Managing Director at Citigroup, where he led the Financial Institutions M&A effort in New York. Mr. Wilkerson serves as Chairman of the Boards of Directors of each of AFGRI and Clean Energy Africa (CEA). He served as Chairman of the board of charity: water, one of the world's largest non-profits focused on clean water solutions in Africa. He was a Non-Executive Director at Atlas Mara Limited since October 2, 2017 and serves as its Executive Chairman since February 2019. He serves as a Chairman of the board and an Executive Director of the Board at the firm since 2019. He serves as a director of Ascendant. He serves as a Director at Ascendant Learning Limited and Invest Africa US. Since 2008, he has been a Director of charity. He holds an MBA from Harvard Business School, an M.A. in International Relations from Yale University and a B.S. summa cum laude from Oral Roberts University.
Michael's compensation has been consistent with company performance over the past year, both up more than 20%.
Michael's remuneration is about average for companies of similar size in Germany.
CEO & Director
Chief Financial Officer
Senior Vice President of Corporate Development
Managing Director of South Africa & Mauritius
Founder & Chairman of the Board
General Counsel & Corporate Secretary
Board of Directors Tenure
Average tenure and age of the
Fairfax Africa Holdings
board of directors in years:
The tenure for the Fairfax Africa Holdings board of directors is about average.
Fairfax Africa Holdings Corporation, an investment holding company, focuses on investing in public and private equity securities and debt instruments of African businesses or other businesses with customers, suppliers, or business primarily conducted in, or dependent on, Africa. The company was founded in 2016 and is headquartered in Toronto, Canada.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.