Fairfax Financial Holdings (FFH) AI Stock Analysis

• Market Cap: $57.41B
• Dividend Yield: 0.9%
• Average Volume (3M): 55.35K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.71
• Revenue Growth: 16.79%
• EPS Growth: 20.82%
• Country: CA
• Employees: 47,040
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 85.05
• Shares Outstanding: 22,477,575
• 10 Day Avg. Volume: 65,414
• 30 Day Avg. Volume: 55,346
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 2.63
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 10.36
• 1Y Price Target: $2,840.00
• Price Target Upside: 18.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 77 Outperform
• Price Target: C$2,712.00 ▲(13.06% Upside)

Fairfax Financial Holdings' strong financial performance and attractive valuation are key strengths, supported by robust earnings growth and investment gains. Technical indicators suggest a neutral trend, while challenges in specific segments slightly temper the overall outlook.

Positive Factors

Strong Financial Position

A robust financial position with substantial cash reserves enhances Fairfax's ability to invest in growth opportunities and weather economic downturns, supporting long-term stability.

International Growth

Growth in international markets, particularly in Europe and Asia, indicates Fairfax's successful expansion strategy, diversifying revenue streams and reducing reliance on domestic markets.

Rating Upgrades

Upgraded ratings reflect improved financial strength and creditworthiness, enhancing Fairfax's reputation and potentially lowering borrowing costs, which supports long-term growth.

Negative Factors

Challenges in North American Insurance Segment

Declining premiums in North America suggest competitive pressures or market challenges, which could impact future revenue growth and profitability in this key segment.

Underperformance at Zenith

Underperformance at Zenith, with an underwriting loss, highlights operational challenges that may require strategic adjustments to improve efficiency and profitability.

Gulf Insurance Challenges

Challenges in Gulf Insurance, particularly in health business loss ratios, indicate potential risks in maintaining profitability, necessitating strategic focus on cost management.

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 Insurance and Reinsurance, Run-off, and Non-Insurance Companies segments. It insures against losses to property from fire, explosion, earthquake, windstorm, flood, boiler explosion, machinery breakdown, and construction defects, as well as underwrites automobile, commercial and personal property, and crop insurance. The company also offers workers' compensation, employer's liability, accident and health, medical malpractice, professional liability, and umbrella coverage insurance products; marine, aerospace, surety risk, and other risks and liabilities insurance products; and reinsurance products. In addition, it retails home improvement goods, toys and baby products, golf equipment, sports apparel and accessories, housewares and home décors, and tableware and gifts; invests in retail business; and owns and operates holiday resorts. Further, the company provides integrated travel and travel-related financial services; originates, processes, and distributes pulses and staple foods; creates, produces, and distributes entertainment content; and provision of pet medical insurance and database services, as well as media and marketing solutions. The company was formerly known as Markel Financial Holdings Limited and changed its name to Fairfax Financial Holdings Limited in 1987. Fairfax Financial Holdings Limited was incorporated in 1951 and is headquartered in Toronto, Canada.

How the Company Makes Money

Fairfax Financial generates revenue primarily through its insurance and reinsurance operations, where it earns premiums from policyholders in exchange for coverage against various risks. The company invests the premiums it collects into a diversified investment portfolio, which includes equities, fixed income, and alternative investments, generating investment income. Additionally, Fairfax benefits from underwriting profits, which occur when the premiums received exceed the claims paid out and operating expenses. Significant partnerships with other insurers and reinsurers enhance its market reach and capacity for risk acceptance, further contributing to its earnings. The company's strategic focus on long-term value creation through disciplined underwriting and proactive investment management also plays a crucial role in its profitability.

Fairfax Financial Holdings Financial Statement Overview

Summary

Fairfax Financial Holdings demonstrates strong profitability with a consistent gross profit margin and improving net profit margin. The company shows a solid financial foundation with a moderate debt-to-equity ratio and strong return on equity. Cash flow generation is robust, although there is room for improvement in converting operating income to cash.

Income Statement

Fairfax Financial Holdings shows strong profitability with a consistent gross profit margin above 80% and a net profit margin improving to 14.61% in TTM. Revenue growth is positive at 4.06% in TTM, indicating a recovery from previous declines. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.51 in TTM, indicating balanced leverage. Return on equity is strong at 18.64%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a solid financial foundation.

Cash Flow

Free cash flow growth is robust at 26.61% in TTM, indicating improved cash generation. However, the operating cash flow to net income ratio is low, suggesting potential challenges in converting income to cash. The free cash flow to net income ratio is strong at 0.88, reflecting good cash profitability.

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: 2398.68
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2398.68 is below the 20-day moving average (MA) of 2405.56, below the 50-day MA of 2407.12, and above the 200-day MA of 2194.09, indicating a neutral trend. The MACD of 6.08 indicates Positive momentum. The RSI at 48.49 is Neutral, neither overbought nor oversold. The STOCH value of 39.81 is Neutral, 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	77 Outperform	$57.41B	8.19	18.70%	0.90%	16.79%	20.82%
IFC	77 Outperform	47.35B	20.35	12.58%	1.98%	5.25%	15.06%
IAG	75 Outperform	14.17B	14.19	12.86%	2.41%	-4.55%	42.41%
SLF	75 Outperform	46.11B	14.55	12.17%	4.18%	-0.61%	6.69%
DFY	73 Outperform	8.78B	21.29	10.32%	1.01%	18.98%	0.82%
GWO	72 Outperform	49.91B	13.49	13.06%	4.40%	15.27%	4.72%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Fairfax Financial Holdings Corporate Events

Fairfax Financial Launches C$700 Million Senior Notes Offering

Fairfax Financial Holdings Limited has announced a C$700 million senior notes offering, consisting of C$400 million due in 2035 and C$300 million due in 2055. The proceeds from this offering will be used to refinance existing debt, pursue potential acquisitions, and for general corporate purposes, which may include increasing cash reserves or short-term investments. This strategic move is expected to enhance Fairfax’s financial flexibility and support its growth initiatives.

The most recent analyst rating on (TSE:FFH) stock is a Buy with a C$2200.00 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 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.