OTCPK:FFXD.F

Stock Analysis Report

Executive Summary

Fairfax India Holdings Corporation, an investment holding company, engages in investment activities in India.

Snowflake

Fundamentals

High growth potential and overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.7%

FFXD.F

1.7%

US Capital Markets

0.4%

US Market


1 Year Return

-12.0%

FFXD.F

2.4%

US Capital Markets

6.9%

US Market

Return vs Industry: FFXD.F underperformed the US Capital Markets industry which returned 2.4% over the past year.

Return vs Market: FFXD.F underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

FFXD.FIndustryMarket
7 Day1.7%1.7%0.4%
30 Day-6.0%-3.1%-1.1%
90 Day-13.1%-2.3%-0.5%
1 Year-12.0%-12.0%4.7%2.4%9.3%6.9%
3 Year1.5%1.5%51.1%42.6%45.8%36.4%
5 Yearn/a75.7%59.6%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

59.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: FFXD.F ($11.37) is trading above our estimate of fair value ($8.54)

Significantly Undervalued: FFXD.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FFXD.F is poor value based on its PE Ratio (59.7x) compared to the Capital Markets industry average (39.4x).

PE vs Market: FFXD.F is poor value based on its PE Ratio (59.7x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FFXD.F is good value based on its PB Ratio (0.9x) compared to the US Capital Markets industry average (6.5x).


Next Steps

Future Growth

How is Fairfax India Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

37.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFXD.F's forecast earnings growth (37% per year) is above the savings rate (2.7%).

Earnings vs Market: FFXD.F's earnings (37% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FFXD.F's revenue (44.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: FFXD.F's revenue (44.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if FFXD.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-2.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FFXD.F's earnings have declined by -2.4% per year over the past 5 years.

Accelerating Growth: FFXD.F has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FFXD.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (31.1%).


Return on Equity

High ROE: FFXD.F's Return on Equity (1.4%) is considered low.


Return on Assets

ROA vs Industry: FFXD.F has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: FFXD.F's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Fairfax India Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FFXD.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: FFXD.F's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: FFXD.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if FFXD.F has a sufficient allowance for bad loans.

Low Risk Liabilities: FFXD.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if FFXD.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FFXD.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if FFXD.F has an appropriate level of bad loans.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate FFXD.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FFXD.F's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if FFXD.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FFXD.F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FFXD.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Fairfax India Holdings's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Chandran Ratnaswami (70yo)

0yrs

Tenure

US$3,165,520

Compensation

Mr. Chandran Ponnaiah Ratnaswami, B.E. (Civil), MBA, serves as Managing Director of Hamblin Watsa Investment Counsel Ltd. At Hamblin Watsa, Mr. Ratnaswami is responsible for portfolio investments in Asia.  ...


CEO Compensation Analysis

Compensation vs. Market: Chandran's total compensation ($USD3.17M) is about average for companies of similar size in the US market ($USD4.00M).

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


Management Age and Tenure

3.2yrs

Average Tenure

62yo

Average Age

Experienced Management: FFXD.F's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

67yo

Average Age

Experienced Board: FFXD.F's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$26,46015 Aug 19
Brandon Sweitzer
EntityIndividual
Shares2,250
Max PriceUS$11.76
BuyUS$66,78109 Aug 19
John Ralph Palmer
EntityIndividual
Shares5,500
Max PriceUS$12.14
BuyUS$197,35527 Jun 19
The Bradstreet Family Foundation,Endowment Arm
EntityCompany
Shares20,000
Max PriceUS$9.87
SellUS$192,22017 Dec 18
The Bradstreet Family Foundation,Endowment Arm
EntityCompany
Shares14,000
Max PriceUS$13.73
BuyUS$192,22017 Dec 18
Brian Bradstreet
EntityIndividual
Shares14,000
Max PriceUS$13.73

Ownership Breakdown


Management Team

  • V. Watsa (69yo)

    Founder & Chairman

    • Tenure: 4.8yrs
  • John Varnell (62yo)

    Vice President of Corporate Affairs

    • Tenure: 3.2yrs
    • Compensation: US$551.59k
  • Chandran Ratnaswami (70yo)

    CEO & Director

    • Tenure: 0yrs
    • Compensation: US$3.17m
  • Amy Tan (44yo)

    CEO of FIH Mauritius Investments Ltd & FIH Private Investments Ltd

    • Tenure: 0yrs
    • Compensation: US$251.83k
  • Keir Hunt (38yo)

    General Counsel & Corporate Secretary

    • Tenure: 3.2yrs
  • Amy Sherk

    Chief Financial Officer

    • Tenure: 0.2yrs

Board Members

  • Alan Horn (67yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$30.00k
  • Deepak Parekh (75yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$80.00k
  • Tony Griffiths (88yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$30.00k
  • V. Watsa (69yo)

    Founder & Chairman

    • Tenure: 4.8yrs
  • Chris Hodgson (57yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$30.00k
  • Chandran Ratnaswami (70yo)

    CEO & Director

    • Tenure: 0yrs
    • Compensation: US$3.17m
  • Lauren Templeton (42yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$112.50k
  • Sumit Maheshwari (37yo)

    Director

    • Tenure: 1.2yrs
  • Gopalakrishnan Soundarajan (56yo)

    Director

    • Tenure: 0.6yrs

Company Information

Fairfax India Holdings Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fairfax India Holdings Corporation
  • Ticker: FFXD.F
  • Exchange: OTCPK
  • Founded: 2014
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$1.730b
  • Shares outstanding: 152.15m
  • Website: https://www.fairfaxindia.ca

Number of Employees


Location

  • Fairfax India Holdings Corporation
  • 95 Wellington Street West
  • Suite 800
  • Toronto
  • Ontario
  • M5J 2N7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FIH.UTSX (The Toronto Stock Exchange)YesSubordinate Voting SharesCAUSDMar 2015
FFXD.FOTCPK (Pink Sheets LLC)YesSubordinate Voting SharesUSUSDMar 2015
FIHU NBMV (Bolsa Mexicana de Valores)YesSubordinate Voting SharesMXMXNMar 2015

Biography

Fairfax India Holdings Corporation, an investment holding company, engages in investment activities in India. The company invests in public and private equity securities and debt instruments in India and I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:24
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.