Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally.
Undervalued with solid track record and pays a dividend.
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: FFX has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: FFX underperformed the German Insurance industry which returned 30.2% over the past year.
Return vs Market: FFX underperformed the German Market which returned 15.1% over the past year.
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
No news available
Is Fairfax Financial Holdings undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FFX (€442) is trading below our estimate of fair value (€1171.26)
Significantly Below Fair Value: FFX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FFX is good value based on its PE Ratio (6.4x) compared to the Insurance industry average (12.7x).
PE vs Market: FFX is good value based on its PE Ratio (6.4x) compared to the German market (20.9x).
Price to Earnings Growth Ratio
PEG Ratio: FFX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: FFX is good value based on its PB Ratio (1x) compared to the DE Insurance industry average (1.2x).
How is Fairfax Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FFX's earnings are forecast to decline over the next 3 years (-9.4% per year).
Earnings vs Market: FFX's earnings are forecast to decline over the next 3 years (-9.4% per year).
High Growth Earnings: FFX's earnings are forecast to decline over the next 3 years.
Revenue vs Market: FFX's revenue (2.7% per year) is forecast to grow slower than the German market (5% per year).
High Growth Revenue: FFX's revenue (2.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FFX's Return on Equity is forecast to be low in 3 years time (11.3%).
How has Fairfax Financial Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FFX has high quality earnings.
Growing Profit Margin: FFX's current net profit margins (9.3%) are higher than last year (1.9%).
Past Earnings Growth Analysis
Earnings Trend: FFX's earnings have grown by 16.2% per year over the past 5 years.
Accelerating Growth: FFX's earnings growth over the past year (505.7%) exceeds its 5-year average (16.2% per year).
Earnings vs Industry: FFX earnings growth over the past year (505.7%) exceeded the Insurance industry 7.8%.
Return on Equity
High ROE: FFX's Return on Equity (11%) is considered low.
Return on Assets
Return on Capital Employed
How is Fairfax Financial Holdings's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: FFX has a low level of unsold assets or inventory.
Debt Coverage by Assets: FFX's debt is covered by short term assets (assets are 4.4x debt).
Financial Institutions Analysis
Asset Level: FFX's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if FFX has a sufficient allowance for bad loans.
Low Risk Liabilities: FFX reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if FFX has an acceptable proportion of non-loan assets held.
Low Risk Deposits: FFX has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if FFX has an appropriate level of bad loans.
What is Fairfax Financial Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: FFX's dividend (2.11%) is higher than the bottom 25% of dividend payers in the German market (1.31%).
High Dividend: FFX's dividend (2.11%) is low compared to the top 25% of dividend payers in the German market (3.59%).
Stability and Growth of Payments
Stable Dividend: FFX's dividends per share have been stable in the past 10 years.
Growing Dividend: FFX's dividend payments have not increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (13.4%), FFX's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FFX's dividends in 3 years are forecast to be well covered by earnings (27% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
V. Watsa (69yo)
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 ($USD994.14K) is below average for companies of similar size in the German market ($USD4.37M).
Compensation vs Earnings: V.'s compensation has increased by more than 20% in the past year.
|VP & COO||1yrs||US$1.48m||0.013% $1.5m|
|Chief Financial Officer||0.5yrs||no data||0.0043% $500.0k|
|Vice President of Administrative Services||0yrs||no data||0.012% $1.4m|
|Associate Vice President of Legal||0yrs||no data||no data|
|Vice President of Corporate Development||7.5yrs||US$1.02m||0.011% $1.3m|
|VP of Corporate Affairs & Corporate Secretary||8.1yrs||US$942.68k||0.32% $37.3m|
|VP & Treasurer||14yrs||US$877.90k||0.11% $13.5m|
|President of Fairfax Insurance Group||0yrs||no data||0.18% $21.5m|
|President of Fairfax Brasil||0yrs||no data||no data|
Experienced Management: FFX's management team is seasoned and experienced (7.8 years average tenure).
|Lead Director||0yrs||US$168.05k||0.025% $2.9m|
|Independent Director||16.1yrs||US$168.75k||0.0075% $878.8k|
|Independent Director||9.8yrs||US$91.20k||0.0076% $888.2k|
|Independent Director||7.8yrs||US$90.50k||0.0043% $504.7k|
|Independent Director||12.8yrs||US$185.80k||0.0037% $438.8k|
|Director||0.6yrs||no data||0.00075% $88.2k|
|Independent Director||2.8yrs||US$91.47k||0.093% $10.9m|
|Independent Director||2.8yrs||US$85.00k||no data|
Experienced Board: FFX's board of directors are considered experienced (7.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FFX insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Fairfax Financial Holdings Limited's company bio, employee growth, exchange listings and data sources
- Name: Fairfax Financial Holdings Limited
- Ticker: FFX
- Exchange: DB
- Founded: 1951
- Industry: Multi-line Insurance
- Sector: Insurance
- Market Cap: CA$16.875b
- Listing Market Cap: CA$11.764b
- Shares outstanding: 26.83m
- Website: https://www.fairfax.ca
Number of Employees
- Fairfax Financial Holdings Limited
- 95 Wellington Street West
- Suite 800
- M5J 2N7
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|FFH||TSX (The Toronto Stock Exchange)||Yes||Subordinate Voting Shares||CA||CAD||Jan 1975|
|FRFH.F||OTCPK (Pink Sheets LLC)||Yes||Subordinate Voting Shares||US||USD||Jan 1975|
|FFX||DB (Deutsche Boerse AG)||Yes||Subordinate Voting Shares||DE||EUR||Jan 1975|
|FFH N||BMV (Bolsa Mexicana de Valores)||Yes||Subordinate Voting Shares||MX||MXN||Jan 1975|
|0KV5||LSE (London Stock Exchange)||Yes||Subordinate Voting Shares||GB||CAD||Jan 1975|
|FFH.PRC||TSX (The Toronto Stock Exchange)||PFD SHS C||CA||CAD||Oct 2009|
|FXFL.F||OTCPK (Pink Sheets LLC)||PFD SHS C||US||USD||Oct 2009|
|FFH.PRE||TSX (The Toronto Stock Exchange)||PFD SHS SER E||CA||CAD||Feb 2010|
|FRFG.F||OTCPK (Pink Sheets LLC)||PFD SHS SER E||US||USD||Feb 2010|
|FFH.PRG||TSX (The Toronto Stock Exchange)||PFD SHS SER G||CA||CAD||Jul 2010|
|FFH.PRI||TSX (The Toronto Stock Exchange)||RESET CV PFD-I||CA||CAD||Oct 2010|
|FRFX.F||OTCPK (Pink Sheets LLC)||RESET CV PFD-I||US||USD||Oct 2010|
|FFH.PRK||TSX (The Toronto Stock Exchange)||CUM 5Y RT PFD K||CA||CAD||Mar 2012|
|FRFF.F||OTCPK (Pink Sheets LLC)||CUM 5Y RT PFD K||US||USD||Mar 2012|
|FRFZ.F||OTCPK (Pink Sheets LLC)||PFD SHS SER D||US||USD||Jan 2015|
|FFH.PRD||TSX (The Toronto Stock Exchange)||PFD SHS SER D||CA||CAD||Jan 2015|
|FFH.PRM||TSX (The Toronto Stock Exchange)||PFD SHS 5 YR RT||CA||CAD||Mar 2015|
|FFH.PRF||TSX (The Toronto Stock Exchange)||PFD SHS SER F||CA||CAD||Apr 2015|
|FXFH.F||OTCPK (Pink Sheets LLC)||PFD SHS SER F||US||USD||Apr 2015|
|FFH.PRH||TSX (The Toronto Stock Exchange)||PFD SHS SER H||CA||CAD||Oct 2015|
|FAXX.F||OTCPK (Pink Sheets LLC)||PFD SHS SER H||US||USD||Oct 2015|
|FFH.PRJ||TSX (The Toronto Stock Exchange)||PFD SHS SER J||CA||CAD||Jan 2016|
Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally. It insures against losses to property from fire, explosion, earthquake, windstorm, flood, boiler explosion, machinery breakdown, and construction defects, as well as underwrites automobile, commercial and personal property, and crop insurance. The company also offers workers' compensation, employer’s liability, accident and health, medical malpractice, professional liability, and umbrella coverage insurance products; marine, aerospace, surety risk, and other miscellaneous risks and liabilities insurance products; and reinsurance products, which includes property, casualty, and liability exposures. In addition, it owns, operates, and franchises restaurants; manufactures food products; retails home improvement goods, toys and baby products, golf equipment, consumables, athletic apparel and accessories, and tableware and gifts; invests in retail and other businesses; owns and operates holiday resorts; invests in real estate sector; operates container freight station; and develops, produces, markets, and distributes television programs. Further, the company provides agricultural commodities storage, catering, pet medical insurance and database, and integrated travel and travel-related financial services, as well as infrastructure services to industries and government. It operates approximately 82 toys and baby products stores in Canada. The company was formerly known as Markel Financial Holdings Limited and changed its name to Fairfax Financial Holdings Limited in 1987. Fairfax Financial Holdings Limited was incorporated in 1951 and is headquartered in Toronto, Canada.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/18 20:56|
|End of Day Share Price||2020/02/18 00:00|
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.