Fairfax Financial Holdings (FFH) AI Stock Analysis

• Market Cap: $58.48B
• Dividend Yield: 0.9%
• Average Volume (3M): 40.81K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.61
• Revenue Growth: 16.79%
• EPS Growth: 20.82%
• Country: CA
• Employees: 47,040
• Sector: Financial
• Sector Strength: 67
• Industry: Insurance - Property & Casualty
• EPS (TTM): 84.87
• Shares Outstanding: 22,630,054
• 10 Day Avg. Volume: 43,686
• 30 Day Avg. Volume: 40,810
• PEG Ratio: 6.45
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 8.67
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 2.63
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 10.36
• 1Y Price Target: $2,727.29
• Price Target Upside: 14.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: C$2,738.00 ▲(14.50% Upside)

Fairfax Financial Holdings demonstrates a strong financial performance with robust revenue growth and attractive valuation. The positive earnings call reinforces the company's solid market position and investment strategy, although technical analysis indicates a cautious short-term outlook. The overall stock score reflects the company's resilient financial stability and potential for long-term growth, despite minor operational challenges.

Positive Factors

Financial Performance

Increased target multiple reflects continued good operating income visibility and solid BVPS growth.

Net Investment Gains

Net investment gains are significantly better due to strong net gains on equities and convertible bonds.

Underwriting Income

Better underwriting income with a 98.5% combined ratio beats the 100.5% estimate.

Negative Factors

Earnings from Associates

Earnings from associates are weaker than expected, which can be unpredictable.

Impairment Charges

Other division performance is lower than expected, largely due to one-time non-cash impairment charges.

Fairfax Financial Holdings Business Overview & Revenue Model

Company Description

Fairfax Financial Holdings Limited is a Canadian holding company engaged in property and casualty insurance and reinsurance, as well as investment management. Founded in 1985 and headquartered in Toronto, Canada, the company operates through its subsidiaries, offering a wide range of insurance products across various sectors including commercial, personal, and specialty insurance. Fairfax is also involved in investment management, leveraging its expertise to make strategic investments in a diverse range of industries.

How the Company Makes Money

Fairfax Financial Holdings generates revenue primarily through its insurance operations and investment activities. The company's insurance subsidiaries underwrite property and casualty insurance and reinsurance, collecting premiums from policyholders which constitute a major source of revenue. Fairfax also manages a significant investment portfolio, investing in a variety of asset classes including equities and fixed income securities. The investment income, which includes interest, dividends, and capital gains, contributes substantially to the company's earnings. Furthermore, Fairfax's strategic acquisitions and partnerships in various industries enhance its revenue streams and overall financial performance.

Fairfax Financial Holdings Financial Statement Overview

Summary

Fairfax Financial Holdings presents a strong financial profile with robust revenue growth and profitability. The balance sheet remains stable with moderate leverage, while cash flow generation supports operational needs despite a recent decline in free cash flow. The company should focus on enhancing operational efficiency and cash management to sustain its financial health.

Income Statement

Fairfax Financial Holdings exhibits strong revenue growth with a TTM (Trailing-Twelve-Months) revenue of $30.03 billion, up from the previous annual revenue of $28.45 billion, indicating a growth rate of 5.57%. The net profit margin stands at 13.47% for TTM, reflecting robust profitability. However, the EBIT margin has decreased from 19.82% in 2023 to 14.64% in TTM, suggesting some pressure on operating efficiency. Overall, the company demonstrates solid revenue momentum and profitability, with some areas for operational improvement.

Balance Sheet

The balance sheet of Fairfax Financial Holdings shows a healthy equity base with a stockholders' equity of $24.07 billion. The debt-to-equity ratio is 0.51, which is fairly moderate and indicates a balanced approach to leveraging. The equity ratio of 24.35% reflects adequate financial stability. However, the total debt has increased slightly over the period, and while it is not concerning, maintaining a check on debt levels will be crucial to sustaining financial stability.

Cash Flow

The cash flow analysis highlights a positive free cash flow of $2.65 billion in TTM, although it has decreased from $3.59 billion in 2023, indicating a decline in free cash flow growth. The operating cash flow to net income ratio stands at 0.76, demonstrating reasonable cash generation relative to net income. While the company maintains a positive cash flow, the decline in free cash flow growth suggests potential challenges in cash management or increased capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.25B	28.45B	31.83B	25.82B	25.80B	19.79B
Gross Profit	25.26B	28.45B	25.80B	25.82B	25.80B	19.79B
EBITDA	7.93B	7.04B	6.09B	2.03B	-100.50M	1.47B
Net Income	4.57B	3.87B	4.38B	1.15B	3.40B	37.40M
Balance Sheet
Total Assets	103.57B	96.78B	91.99B	92.13B	86.65B	74.05B
Cash, Cash Equivalents and Short-Term Investments	10.04B	7.28B	7.96B	11.70B	25.34B	16.30B
Total Debt	13.22B	13.06B	10.80B	9.32B	7.75B	8.81B
Total Liabilities	73.57B	68.43B	64.28B	71.79B	65.33B	56.53B
Stockholders Equity	25.77B	24.07B	22.95B	16.68B	16.39B	13.86B
Cash Flow
Free Cash Flow	3.36B	3.59B	-553.50M	-4.84B	6.29B	-133.50M
Operating Cash Flow	3.79B	3.99B	-39.40M	-4.42B	6.64B	139.80M
Investing Cash Flow	-1.26B	-1.32B	92.00M	384.80M	1.84B	-46.80M
Financing Cash Flow	-1.65B	-1.56B	-1.07B	-1.29B	-1.19B	436.90M

Fairfax Financial Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2391.21
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FFH, the sentiment is Neutral. The current price of 2391.21 is below the 20-day moving average (MA) of 2446.16, below the 50-day MA of 2405.86, and above the 200-day MA of 2101.02, indicating a neutral trend. The MACD of 4.18 indicates Positive momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of 16.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:FFH.

Fairfax Financial Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FFH	78 Outperform	$58.48B	8.29	18.70%	0.90%	16.79%	20.82%
IFC	77 Outperform	C$51.45B	22.11	13.23%	1.79%	5.25%	15.06%
IAG	75 Outperform	C$12.85B	12.82	13.43%	2.47%	-4.55%	42.41%
GWO	74 Outperform	C$48.33B	13.05	14.19%	4.30%	15.27%	4.72%
SLF	72 Outperform	$47.33B	15.28	13.18%	3.98%	0.94%	3.50%
DFY	71 Outperform	C$8.99B	21.81	11.48%	0.95%	18.98%	0.82%
Sector *	58 Neutral	HK$95.83B	4.96	-4.09%	4.96%	2.98%	-39.97%

Fairfax Financial Holdings Corporate Events

Fairfax Financial Holdings Reports Strong Q2 2025 Earnings Boosted by Investment Gains

Fairfax Financial Holdings reported net earnings of $1,436.7 million in Q2 2025, a significant increase from $915.4 million in the same quarter of 2024, driven by substantial net gains on investments. The company’s property and casualty insurance operations showed robust performance with a combined ratio of 93.3% and an underwriting profit of $426.9 million, indicating strong market positioning and effective risk management.

The most recent analyst rating on (TSE:FFH) stock is a Buy with a C$1850.00 price target. To see the full list of analyst forecasts on Fairfax Financial Holdings stock, see the TSE:FFH Stock Forecast page.

Fairfax Warns Against Fraudulent Online Communications

Fairfax Financial Holdings Limited has issued a reminder to its shareholders and the public that neither the company, its CEO Prem Watsa, nor any of its officers provide financial or investment advice through social media or messaging platforms. The company warns against impersonation scams and advises individuals to seek information through official channels such as their website, press releases, and reports.

The most recent analyst rating on (TSE:FFH) stock is a Buy with a C$2600.00 price target. To see the full list of analyst forecasts on Fairfax Financial Holdings stock, see the TSE:FFH Stock Forecast page.

Fairfax Financial Appoints Amitabh Kant as Senior Advisor to Boost Indian Investments

Fairfax Financial Holdings has appointed Mr. Amitabh Kant as a Senior Advisor, leveraging his extensive experience in economic development and transformative initiatives in India. This strategic move is expected to enhance Fairfax’s investment approach in India, aligning with the country’s ambitious economic goals and benefiting stakeholders by supporting sectors critical to India’s growth, such as infrastructure and financial services.

The most recent analyst rating on (TSE:FFH) stock is a Buy with a C$1850.00 price target. To see the full list of analyst forecasts on Fairfax Financial Holdings stock, see the TSE:FFH Stock Forecast page.

Fairfax Financial Holdings Prices $900 Million Senior Notes Offering

Fairfax Financial Holdings Limited announced the pricing of a private offering of senior notes totaling US$900 million, with the proceeds intended for refinancing, repaying, or redeeming existing obligations, as well as potential acquisitions or investments. This strategic move aims to strengthen Fairfax’s financial position and flexibility, potentially impacting its market operations and providing opportunities for growth and investment.

The most recent analyst rating on (TSE:FFH) stock is a Buy with a C$1850.00 price target. To see the full list of analyst forecasts on Fairfax Financial Holdings stock, see the TSE:FFH Stock Forecast page.