Fairfax Financial Holdings (TSE:FFH)
TSX:FFH
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Fairfax Financial Holdings
(TSX:FFH)
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Rating:72Outperform
Price Target:
C$2,594.00
â–²(9.76% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by solid underlying financial performance (strong profitability and reasonable leverage, partially offset by cash-flow volatility) and a very positive earnings call with clear operating income targets and strong underwriting/investment execution. Valuation is supportive due to a low P/E, while technicals are comparatively neutral with the stock sitting near shorter-term averages but below longer-term trend levels.
Positive Factors
Large, productive investment portfolio
A USD 74.9bn investable base with ~USD 50bn in fixed income earning ~5% and a 9.3% 2025 return provides durable investment income and liquidity. This sizable, diversified float supports underwriting volatility, funds buybacks and M&A, and underpins long-term capital flexibility independent of underwriting cycles.
Negative Factors
Volatile cash generation
Operating and free cash flow volatility—including periods of negative operating cash flow and a sharp FCF decline in 2025—reduces predictability for dividends, buybacks and M&A funding. For an insurer, inconsistent cash conversion can force reliance on asset sales or revolver access during stress, weakening durable financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, productive investment portfolio
A USD 74.9bn investable base with ~USD 50bn in fixed income earning ~5% and a 9.3% 2025 return provides durable investment income and liquidity. This sizable, diversified float supports underwriting volatility, funds buybacks and M&A, and underpins long-term capital flexibility independent of underwriting cycles.
Read all positive factors
Fairfax Financial Holdings (FFH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$50.69B
Dividend Yield0.84%
Average Volume (3M)111.04K
Price to Earnings (P/E)8.6
Beta (1Y)0.50
Revenue Growth10.08%
EPS Growth24.18%
CountryCA
Employees47,040
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)80.16
Shares Outstanding19,900,800
10 Day Avg. Volume131,564
30 Day Avg. Volume111,043
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)1.54
Price to Sales (P/S)1.34
P/FCF Ratio17.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$2,840.18Price Target Upside20.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)188.65
Revenue Forecast (FY)C$34.24B
Fairfax Financial Holdings Business Overview & Revenue Model
Company Description
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. The company operates through Insura...
How the Company Makes Money
FFH primarily makes money through (1) underwriting in its P&C insurance and reinsurance businesses and (2) investment income and gains generated from investing the insurance float and shareholders’ equity.
1) Underwriting income (insurance and re...
Fairfax Financial Holdings Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and investment picture: record net earnings, record underwriting income, robust investment returns and meaningful book value per share growth. The company highlights broad diversification, sizable investment firepower, favorable reserve development (19 consecutive years) and strategic moves (Kennedy Wilson). Offsetting items include FX losses, some discount-rate related accounting losses, softening pricing in parts of the insurance market, isolated underperformance in a few entities (e.g., Zenith, runoff reserve strengthening) and a modest uptick in leverage. On balance the positive financial performance, large investment gains, and clear capital allocation options materially outweigh the challenges discussed.Positive Updates
Record Net Earnings and Underwriting Income
Net earnings after taxes of $4.8 billion in FY2025 (the highest in company history) with record underwriting income of $1.8 billion for the year.
Negative Updates
Foreign Exchange Losses and Discount Rate Impact
Foreign exchange losses of $440 million (partially offset in OCI) and IFRS/discounting movements produced a pretax loss of $59 million for 2025 (net loss on insurance contract discounting of $444 million offset by bond gains of $385 million).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Net Earnings and Underwriting Income
Net earnings after taxes of $4.8 billion in FY2025 (the highest in company history) with record underwriting income of $1.8 billion for the year.
Read all positive updates
Company Guidance
Fairfax gave clear forward-looking targets: management said it can see consolidated operating income of about $5.0 billion for the next number of years (no guarantee), which they break down into roughly $1.5 billion of underwriting profit, $2.5 billion of interest and dividend income and $1.0 billion from associates and non‑insurance consolidated income (the company also reiterated a $1.5 billion underwriting‑profit target); this confidence rests on a $33.3 billion insurance/reinsurance premium base and strong reserving (2025 favorable reserve development of $752 million, 2.9 points; 19 consecutive years, $6.9 billion cumulative). On investments the portfolio was USD 74.9 billion at year‑end (USD 50.0 billion fixed income earning about 5% and USD 24.9 billion equities/associates), 2025 investment return was 9.3%, interest & dividend income was $2.6 billion and net gains on investments were $3.2 billion, with an unrealized excess fair value in equity‑accounted and consolidated non‑insurance holdings of $3.1 billion (≈$150/share pretax). On capital deployment and transactions, the holding company had $2.7 billion of cash and investments, access to a $2.0 billion revolver and $2.2 billion (fair value) of associates/non‑insurance investments at the holding company; Fairfax committed up to $1.65 billion to fund the Kennedy Wilson acquisition (expected to close Q2 2026), has Eurolife Life assets/liabilities held for sale of $3.4B/$3.6B with an estimated pretax gain of ≈$350M (also expected Q2 2026), is pursuing AGT’s CAD 460M IPO (expected post‑close Fairfax stake ~51–53%), and continues share repurchases (just over 1.0M shares at ~CA$1,615 in 2025 plus ~131k at CA$1,685 and a further 130,573 at CA$1,684.70 in early 2026).Fairfax Financial Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 30.41B | 28.45B | 25.80B | 19.58B | 25.80B |
| Gross Profit | 6.59B | 5.57B | 5.23B | -104.30M | 12.27B |
| EBITDA | 8.05B | 7.04B | 7.31B | 6.03B | 5.84B |
| Net Income | 4.77B | 3.87B | 4.38B | 3.37B | 3.40B |
Balance Sheet | |||||
| Total Assets | 107.59B | 96.78B | 91.99B | 92.13B | 86.65B |
| Cash, Cash Equivalents and Short-Term Investments | 11.68B | 7.28B | 7.96B | 11.70B | 25.34B |
| Total Debt | 14.83B | 13.06B | 10.80B | 9.32B | 7.75B |
| Total Liabilities | 76.77B | 68.43B | 64.28B | 71.79B | 65.33B |
| Stockholders Equity | 26.47B | 24.07B | 22.95B | 16.68B | 16.39B |
Cash Flow | |||||
| Free Cash Flow | 2.40B | 3.59B | -553.50M | -4.84B | 6.29B |
| Operating Cash Flow | 2.99B | 3.99B | -39.40M | -4.42B | 6.64B |
| Investing Cash Flow | -702.28M | -1.32B | 92.00M | 384.80M | 1.84B |
| Financing Cash Flow | -1.69B | -1.56B | -1.07B | -1.29B | -1.19B |
Fairfax Financial Holdings Technical Analysis
Positive
2363.41
Price Trends
2317.97
Positive
2374.10
Negative
2377.43
Negative
Market Momentum
4.47
Negative
51.76
Neutral
36.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FFH, the sentiment is Positive. The current price of 2363.41 is above the 20-day moving average (MA) of 2321.31, above the 50-day MA of 2317.97, and below the 200-day MA of 2377.43, indicating a neutral trend. The MACD of 4.47 indicates Negative momentum. The RSI at 51.76 is Neutral, neither overbought nor oversold. The STOCH value of 36.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FFH.
Fairfax Financial Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$43.89B | 15.12 | 16.27% | 1.86% | 2.51% | 44.44% | |
72 Outperform | C$50.69B | 8.56 | 18.62% | 0.84% | 10.08% | 24.18% | |
72 Outperform | C$49.02B | 12.88 | 14.68% | 4.11% | -19.88% | -13.92% | |
72 Outperform | C$14.18B | 15.09 | 13.62% | 2.11% | -25.13% | 16.40% | |
68 Neutral | C$7.69B | 21.30 | 11.01% | 0.98% | 19.80% | -12.93% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | C$59.66B | 14.06 | 13.98% | 3.62% | -20.64% | 14.88% |
* Financial Sector Average
TSE:FFH
Fairfax Financial Holdings
2,363.41
441.35
22.96%
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22.29%
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31.25%
TSE:IFC
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TSE:DFY
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4.64%
Fairfax Financial Holdings Corporate Events
Business Operations and StrategyM&A Transactions
Fairfax to Sell Half Its Poseidon Stake for US$1.9 Billion While Retaining Strategic Holding
Positive
Mar 10, 2026
Fairfax Financial Holdings has agreed to sell about half of its stake in Poseidon Corp., the parent of container-ship owner Seaspan, for roughly US$1.91 billion, offloading 67.6 million shares at US$28.30 each to one existing shareholder and two n...
Business Operations and StrategyPrivate Placements and Financing
Fairfax Raises C$650 Million in Senior Notes to Boost Financial Flexibility
Positive
Feb 27, 2026
Fairfax Financial Holdings has completed a C$650 million senior notes offering, comprising C$400 million of 4.40% notes due 2036 and an additional C$250 million of 5.10% notes due 2055, bringing that longer-dated series to C$550 million outstandin...
Business Operations and StrategyPrivate Placements and Financing
Fairfax to Raise C$650 Million in New and Tap 2055 Senior Notes
Positive
Feb 25, 2026
Fairfax Financial Holdings has launched a C$650 million senior notes offering, comprising C$400 million of new 4.40% unsecured notes due 2036 and C$250 million of additional 5.10% unsecured notes due 2055, to be sold through a syndicate of major C...
Business Operations and StrategyDelistings and Listing ChangesDividendsM&A TransactionsPrivate Placements and Financing
Fairfax-Backed Management Consortium to Take Kennedy Wilson Private in $10.90-a-Share Deal
Positive
Feb 17, 2026
Kennedy-Wilson Holdings has agreed to be acquired in an all-cash deal by a consortium led by Chairman and CEO William McMorrow and other senior executives, alongside Fairfax Financial. The transaction values the company at $10.90 per share, a 46% ...
Business Operations and StrategyDividendsFinancial Disclosures
Fairfax Financial Declares US$15 Annual Dividend, Stresses No Guidance for Future Payouts
Positive
Jan 5, 2026
Fairfax Financial Holdings has declared an annual dividend of US$15.00 per share on its multiple voting and subordinate voting shares, payable on January 22, 2026 to shareholders of record as of January 15, 2026, with Canadian withholding tax appl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.