OTCPK:FFXX.F

Stock Analysis Report

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Executive Summary

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.


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FFXX.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

FFXX.F

6.3%

US Capital Markets

2.5%

US Market


1 Year Return

-63.8%

FFXX.F

6.8%

US Capital Markets

8.4%

US Market

Return vs Industry: FFXX.F underperformed the US Capital Markets industry which returned -0.8% over the past year.

Return vs Market: FFXX.F underperformed the US Market which returned 4.6% over the past year.


Shareholder returns

FFXX.FIndustryMarket
7 Day-0.3%6.3%2.5%
30 Day-5.2%4.7%5.1%
90 Day-32.2%-0.08%2.0%
1 Year-63.8%-63.8%9.0%6.8%10.9%8.4%
3 Year-69.9%-69.9%30.1%22.3%30.5%21.9%
5 Yearn/a52.2%37.6%56.9%39.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.46x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FFXX.F's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FFXX.F's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FFXX.F is unprofitable, so we can't compare its PE Ratio to the Capital Markets industry average.

PE vs Market: FFXX.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FFXX.F is good value based on its PB Ratio (0.5x) compared to the US Capital Markets industry average (7.6x).


Next Steps

Future Growth

How is Fairfax Africa Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.9%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Fairfax Africa Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

-91.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FFXX.F is currently unprofitable.

Growing Profit Margin: FFXX.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FFXX.F is unprofitable, and losses have increased over the past 5 years at a rate of -91.5% per year.

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

Earnings vs Industry: FFXX.F is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (16.6%).


Return on Equity

High ROE: FFXX.F has a negative Return on Equity (-40.87%), as it is currently unprofitable.


Next Steps

Financial Health

How is Fairfax Africa Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: FFXX.F's short term assets ($180.2M) exceed its short term liabilities ($4.9M).

Long Term Liabilities: FFXX.F's short term assets ($180.2M) exceed its long term liabilities ($72.0K).


Debt to Equity History and Analysis

Debt Level: FFXX.F is debt free.

Reducing Debt: FFXX.F had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable FFXX.F has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FFXX.F is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 48% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if FFXX.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 FFXX.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.3yrs

Average board tenure


CEO

Michael Wilkerson (49yo)

no data

Tenure

US$1,269,800

Compensation

Mr. Michael S. Wilkerson is Non-Executive Chairman of the Board at Consolidated Infrastructure Group Limited since January 30, 2019. He serves as Chief Executive Officer of Fairfax Africa Holdings Corporat ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.27M) is about average for companies of similar size in the US market ($USD1.42M).

Compensation vs Earnings: Michael's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Michael Wilkerson
CEO & Directorno dataUS$1.27m0.078% $141.4k
V. Watsa
Founder & Chairman of the Board4.33yrsno data0.17% $308.0k
Christopher Hodgson
Lead Directorno dataUS$30.00k0.0068% $12.3k
Paul Rivett
Vice Chairman of the Board2.17yrsno data0.025% $46.2k
Richard Okello
Independent Director4.33yrsUS$30.00k0.0025% $4.6k
Hisham Ezz Al-Arab
Independent Director4.33yrsUS$30.00kno data
Ndidi Nwuneli
Independent Director4.33yrsUS$30.00k0.0034% $6.2k
Robert McLean
Director4.33yrsno data0.021% $37.9k
Roméo Dallaire
Independent Director1.17yrsUS$84.26kno data

4.3yrs

Average Tenure

51yo

Average Age

Experienced Board: FFXX.F's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FFXX.F 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 Africa Holdings Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fairfax Africa Holdings Corporation
  • Ticker: FFXX.F
  • Exchange: OTCPK
  • Founded: 2016
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$181.828m
  • Shares outstanding: 59.04m
  • Website: https://www.fairfaxafrica.ca

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FAH.UTSX (The Toronto Stock Exchange)YesSubordinate Voting SharesCAUSDFeb 2017
FFXX.FOTCPK (Pink Sheets LLC)YesSubordinate Voting SharesUSUSDFeb 2017
3UDBST (Boerse-Stuttgart)YesSubordinate Voting SharesDEEURFeb 2017

Biography

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. Fairfax Africa Holdings Corporation was founded in 2016 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 05:27
End of Day Share Price2020/05/28 00:00
Earnings2020/03/31
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.