Fairfax Financial Holdings (TSE:FFH)
TSX:FFH
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Fairfax Financial Holdings
(TSX:FFH)
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Rating:66Neutral
Price Target:
C$2,344.00
â–¼(-4.59% Downside)
Action:Reiterated
Date:05/04/26
The score is supported primarily by strong underlying profitability and a constructive earnings update on underwriting and planned realizations, with reasonable valuation as an added positive. It is held back most by weak technical momentum and by inconsistent/declining recent cash generation despite strong reported earnings.
Positive Factors
Strong profitability and ROE
Fairfax shows durable earnings power: multi‑billion TTM net income and high‑teens ROE reflect scale and profitable underwriting/investment mix. Sustained margin strength supports internal capital generation and long‑term ability to fund acquisitions, buybacks, and reserves.
Negative Factors
Weak, volatile cash generation
Cash conversion has been uneven: recent sharp declines in FCF and operating cash flow constrain the firm's ability to fund acquisitions, share repurchases, or absorb underwriting shocks without tapping liquidity. Persistent variability raises funding and execution risk over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and ROE
Fairfax shows durable earnings power: multi‑billion TTM net income and high‑teens ROE reflect scale and profitable underwriting/investment mix. Sustained margin strength supports internal capital generation and long‑term ability to fund acquisitions, buybacks, and reserves.
Read all positive factors
Fairfax Financial Holdings (FFH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$50.05B
Dividend Yield0.84%
Average Volume (3M)111.04K
Price to Earnings (P/E)12.7
Beta (1Y)0.55
Revenue Growth2.46%
EPS Growth15.03%
CountryCA
Employees47,040
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)212.26
Shares Outstanding21,507,086
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$2,739.03Price Target Upside11.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)198.8
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented several strong operating and strategic positives: materially higher operating income, improved underwriting results and combined ratio, sizable near-term monetizations (Poseidon, Eurolife), strong associate profits, and a conservative, high-yield fixed income position. These positives were offset by meaningful quarter-to-quarter mark-to-market investment losses driven by rising interest rates, some softness in North American premiums and elevated combined ratios in select businesses (e.g., Zenith), a modest decline in shareholders' equity/book value on a nominal basis, and a slight increase in leverage. On balance, the operational and strategic highlights — including expected one-time gains, strong associate performance and sound liquidity — outweigh the quarter-specific investment mark-to-market pressures and localized underwriting challenges.Positive Updates
Strong Operating Income and Underwriting Performance
Operating income (insurance & reinsurance, undiscounted before risk margin) of $1.2B in Q1 2026 vs $686M in Q1 2025 (≈+75%). Underwriting income of $382M (vs $97M prior year) and combined ratio improved to 94.1% from 98.5% (improvement of 4.4 percentage points), driven largely by lower catastrophe losses (1.8 pts vs 12.7 pts prior year).
Negative Updates
Quarterly Mark‑to‑Market Investment Losses
Net losses on investments of $386M in Q1 2026 primarily from mark-to-market losses on bond portfolio (notably U.S. Treasuries) and equity exposures; contrast to net gains of $1.1B in Q1 2025 — a swing of nearly $1.5B quarter-over-quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Operating Income and Underwriting Performance
Operating income (insurance & reinsurance, undiscounted before risk margin) of $1.2B in Q1 2026 vs $686M in Q1 2025 (≈+75%). Underwriting income of $382M (vs $97M prior year) and combined ratio improved to 94.1% from 98.5% (improvement of 4.4 percentage points), driven largely by lower catastrophe losses (1.8 pts vs 12.7 pts prior year).
Read all positive updates
Company Guidance
Fairfax’s forward guidance focused on expected Q2 closings and continuing emphasis on underwriting discipline: management expects to close the sale of half its Poseidon stake for ~$1.9B (estimated pretax gain ≈ $837M) and the Eurolife life business for ≈ $935M (pretax gain ≈ $350M), and to complete the Kennedy Wilson take‑private at $10.90/share in Q2 with Fairfax committed up to $1.65B of funding. Management reiterated that investment results will fluctuate quarter‑to‑quarter (Q1 net losses on investments ≈ $386M vs Q1‑2025 gains ≈ $1.1B) but should perform well over the long term; book value per share was $1,250 at March 31, 2026 (up 0.5% Q‑on‑Q adjusted for the $15 dividend) and excludes $3.9B of unrealized pretax excess fair value (~$190/share). On insurance, the guidance stressed underwriting profit and decentralized discipline after a strong Q1 that produced $1.2B of operating income from insurance/reinsurance, $382M of underwriting income, a 94.1% combined ratio (vs 98.5% a year ago), $86M of favorable reserve development (1.3 pts), and annualized gross premiums written of > $33B (international Q1 premiums $1.7B, +16.4%, now ~20% of total).Fairfax Financial Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.34B | 30.41B | 28.45B | 25.80B | 19.58B | 25.80B |
| Gross Profit | 6.18B | 6.59B | 5.57B | 5.23B | -104.30M | 12.27B |
| EBITDA | 7.83B | 8.05B | 7.04B | 7.31B | 6.03B | 5.84B |
| Net Income | 4.52B | 4.77B | 3.87B | 4.38B | 3.37B | 3.40B |
Balance Sheet | ||||||
| Total Assets | 107.39B | 107.59B | 96.78B | 91.99B | 92.13B | 86.65B |
| Cash, Cash Equivalents and Short-Term Investments | 10.31B | 11.68B | 7.28B | 7.96B | 11.70B | 25.34B |
| Total Debt | 14.05B | 14.83B | 13.06B | 10.80B | 9.32B | 7.75B |
| Total Liabilities | 76.73B | 76.77B | 68.43B | 64.28B | 71.79B | 65.33B |
| Stockholders Equity | 26.01B | 26.47B | 24.07B | 22.95B | 16.68B | 16.39B |
Cash Flow | ||||||
| Free Cash Flow | 614.63M | 2.40B | 3.59B | -553.50M | -4.84B | 6.29B |
| Operating Cash Flow | 1.32B | 2.99B | 3.99B | -39.40M | -4.42B | 6.64B |
| Investing Cash Flow | -1.05B | -702.28M | -1.32B | 92.00M | 384.80M | 1.84B |
| Financing Cash Flow | -1.34B | -1.69B | -1.56B | -1.07B | -1.29B | -1.19B |
Fairfax Financial Holdings Technical Analysis
Negative
2456.84
Price Trends
2332.23
Negative
2366.22
Negative
2363.71
Negative
Market Momentum
-48.92
Positive
34.12
Neutral
13.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FFH, the sentiment is Negative. The current price of 2456.84 is above the 20-day moving average (MA) of 2304.30, above the 50-day MA of 2332.23, and above the 200-day MA of 2363.71, indicating a bearish trend. The MACD of -48.92 indicates Positive momentum. The RSI at 34.12 is Neutral, neither overbought nor oversold. The STOCH value of 13.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | C$70.28B | 11.83 | 15.17% | 3.62% | 4.22% | 13.75% | |
75 Outperform | C$46.70B | 14.87 | 16.93% | 1.86% | 3.57% | 51.86% | |
71 Outperform | C$54.85B | 22.52 | 12.98% | 4.11% | -10.77% | -1.88% | |
71 Outperform | C$15.31B | 24.06 | 12.80% | 2.11% | -1.40% | 14.51% | |
69 Neutral | C$8.26B | 30.75 | 11.01% | 0.98% | 24.56% | -10.00% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | C$50.05B | 12.72 | 17.32% | 0.84% | 2.46% | 15.03% |
* Financial Sector Average
TSE:FFH
Fairfax Financial Holdings
2,170.90
-65.74
-2.94%
TSE:SLF
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99.03
14.73
17.47%
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58.22%
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iA Financial Corporation Inc
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33.40
24.28%
TSE:IFC
Intact Financial Corporation
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-10.36%
TSE:DFY
Definity Financial Corp.
67.91
0.69
1.02%
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% ...
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.