Fairfax Financial Holdings (FFH) AI Stock Analysis

• Market Cap: C$52.82B
• Dividend Yield: 0.98%
• Average Volume (3M): 46.57K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.64
• Revenue Growth: 10.08%
• EPS Growth: 24.18%
• Country: CA
• Employees: 47,040
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 73.11
• Shares Outstanding: 22,344,910
• 10 Day Avg. Volume: 52,120
• 30 Day Avg. Volume: 46,574
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$2,998.13
• Price Target Upside: 35.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 275.7
• Revenue Forecast (FY): C$45.28B

• Rating: 75 Outperform
• Price Target: C$2,490.00 ▲(12.64% Upside)

Fairfax Financial Holdings' strong financial performance and positive earnings call sentiment are key strengths, contributing significantly to the overall score. The low P/E ratio suggests undervaluation, enhancing the stock's attractiveness. However, technical indicators point to a bearish trend, which tempers the overall score.

Positive Factors

Strong Underwriting and Investment Performance

The strong underwriting and investment performance indicates effective risk management and investment strategies, contributing to sustained profitability.

Increase in Book Value Per Share

An increase in book value per share reflects the company's ability to enhance shareholder value through effective capital management and profitability.

Growth in International Operations

Expansion in international markets demonstrates Fairfax's ability to capture growth opportunities globally, diversifying revenue sources and reducing regional risk.

Negative Factors

Increased Total Debt to Total Capital Ratio

Rising debt levels can constrain financial flexibility and increase interest obligations, potentially impacting long-term financial health.

Impact of Interest Rate Changes

Interest rate fluctuations can affect investment returns and liabilities, posing a challenge to maintaining stable earnings and financial performance.

Decline in Gulf Insurance Premiums

A decline in premiums from Gulf Insurance indicates potential volatility in regional operations, which could affect overall revenue stability.

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 and effective equity utilization, with improving revenue and cash flow trends. While leverage is moderate, the company shows resilience in cash generation, though there is room for improvement in operating cash flow conversion.

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: Negative
• Last Price: 2210.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 2210.63 is below the 20-day moving average (MA) of 2307.07, below the 50-day MA of 2372.91, and below the 200-day MA of 2251.29, indicating a bearish trend. The MACD of -48.20 indicates Positive momentum. The RSI at 32.77 is Neutral, neither overbought nor oversold. The STOCH value of 24.90 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLF	78 Outperform	$46.18B	15.57	11.96%	3.95%	-19.88%	-13.92%
IFC	77 Outperform	C$47.29B	20.32	16.27%	1.86%	2.51%	44.44%
GWO	76 Outperform	C$54.79B	14.86	15.09%	3.98%	-20.64%	14.88%
DFY	76 Outperform	C$7.99B	19.37	13.44%	1.03%	19.80%	-12.93%
FFH	75 Outperform	C$52.82B	7.32	18.65%	0.98%	10.08%	24.18%
IAG	73 Outperform	C$15.47B	15.51	14.34%	2.29%	-25.13%	16.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Fairfax Financial Holdings Corporate Events

Fairfax Financial Reports Strong Q3 Earnings Growth

Fairfax Financial Holdings Ltd, a Toronto-based holding company, primarily engages in property and casualty insurance and reinsurance, along with investment management through its subsidiaries.

Fairfax Financial Reports Strong Q3 2025 Earnings and Strategic Sale

Fairfax Financial Holdings reported a significant increase in net earnings for the third quarter of 2025, reaching $1,151.7 million compared to $1,030.8 million in the same quarter of 2024. This growth was driven by strong core underwriting performance, increased interest and dividend income, and favorable results from profit of associates. The company also announced the sale of its 80% interest in Eurolife’s life insurance operations to Eurobank for approximately $940 million, while acquiring a 45% equity interest in Eurobank’s Cyprus-based property and casualty insurance company, ERB Asfalistiki, for about $68 million. This strategic move allows Fairfax to maintain its focus on property and casualty insurance while benefiting from Eurolife’s continued success.

The most recent analyst rating on (TSE:FFH) stock is a Buy with a C$3200.00 price target. To see the full list of analyst forecasts on Fairfax Financial Holdings stock, see the TSE:FFH Stock Forecast page.

Fairfax Financial Renews Universal Shelf Prospectus for Capital Flexibility

On November 4, 2025, Fairfax Financial Holdings Limited announced the renewal of its universal shelf prospectus, allowing the company to offer an unlimited number of debt, equity, or other securities over a 25-month period. This strategic move is designed to provide Fairfax with flexibility in capital raising, potentially impacting its market positioning and offering opportunities for stakeholders to engage with new securities offerings.

The most recent analyst rating on (TSE:FFH) stock is a Buy with a C$3200.00 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 to Discuss Q3 Results in Upcoming Conference Call

Fairfax Financial Holdings Limited has announced a conference call scheduled for November 7, 2025, to discuss its third quarter results, which will be released on November 6, 2025. This announcement provides stakeholders with an opportunity to gain insights into the company’s performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:FFH) stock is a Buy with a C$3050.00 price target. To see the full list of analyst forecasts on Fairfax Financial Holdings stock, see the TSE:FFH Stock Forecast page.

Fairfax Sells Eurolife Life Insurance Stake to Eurobank

On October 13, 2025, Fairfax Financial Holdings Limited announced the sale of its 80% equity interest in the life insurance business operated by Eurolife FFH Insurance Group Holdings S.A. to Eurobank for €813 million. Fairfax will retain its 80% interest in Eurolife’s property and casualty insurance business and acquire a 45% equity interest in Eurobank’s property and casualty insurance operations in Cyprus for €59 million. This strategic move allows Fairfax to focus on its core property and casualty insurance operations while benefiting from Eurolife’s continued success under Eurobank’s ownership.

The most recent analyst rating on (TSE:FFH) stock is a Buy with a C$2792.00 price target. To see the full list of analyst forecasts on Fairfax Financial Holdings stock, see the TSE:FFH Stock Forecast page.

Fairfax Sells Eurolife Life Insurance Stake to Eurobank

Fairfax Financial Holdings Limited has announced the sale of its 80% equity interest in the life insurance business of Eurolife FFH Insurance Group Holdings S.A. to Eurobank for €813 million. This strategic move allows Fairfax to focus on its core operations in property and casualty insurance while maintaining a stake in the life insurance sector through Eurobank. Additionally, Fairfax will acquire a 45% equity interest in Eurobank’s property and casualty insurance business in Cyprus, with an option to increase its stake over time. The transaction is expected to close in the first quarter of 2026, and it positions Fairfax to strengthen its presence in the Greek insurance market.

The most recent analyst rating on (TSE:FFH) stock is a Buy with a C$2792.00 price target. To see the full list of analyst forecasts on Fairfax Financial Holdings stock, see the TSE:FFH Stock Forecast page.

Fairfax Financial Announces New Share Buyback Program

On September 26, 2025, Fairfax Financial Holdings Limited announced its intention to commence a Normal Course Issuer Bid (NCIB) for its Subordinate Voting Shares and several series of Preferred Shares, as approved by the Toronto Stock Exchange. The NCIB, effective from September 30, 2025, to September 29, 2026, aims to purchase shares that Fairfax believes represent an attractive investment opportunity, potentially enhancing shareholder value. Fairfax has also implemented an automatic share purchase plan to facilitate purchases during regulatory or internal trading black-out periods.

The most recent analyst rating on (TSE:FFH) stock is a Buy with a C$2712.00 price target. To see the full list of analyst forecasts on Fairfax Financial Holdings stock, see the TSE:FFH Stock Forecast page.

Fairfax Financial Announces September 2025 Quarterly Dividends

On September 2, 2025, Fairfax Financial Holdings Limited announced its quarterly dividends for Series G, H, I, J, and K preferred shares, with payment dates set for late September 2025. Additionally, the company disclosed the quarterly dividend rate for Series J preferred shares for the period ending December 30, 2025. This announcement reflects Fairfax’s ongoing commitment to returning value to its shareholders and may impact stakeholders by providing clarity on expected returns and financial planning.

The most recent analyst rating on (TSE:FFH) stock is a Buy with a C$2655.00 price target. To see the full list of analyst forecasts on Fairfax Financial Holdings stock, see the TSE:FFH Stock Forecast page.

Fairfax Financial to Redeem Preferred Shares in September 2025

On August 29, 2025, Fairfax Financial Holdings Limited announced its plan to redeem all outstanding Cumulative 5-Year Rate Reset Preferred Shares, Series G, and Cumulative Floating Rate Preferred Shares, Series H, on September 30, 2025. The redemption will be at a price of C$25.00 per share, totaling C$250.0 million, plus accrued dividends. Following the redemption, these shares will be delisted from the Toronto Stock Exchange, impacting the company’s capital structure and potentially affecting stakeholders’ investment strategies.

The most recent analyst rating on (TSE:FFH) stock is a Buy with a C$2655.00 price target. To see the full list of analyst forecasts on Fairfax Financial Holdings stock, see the TSE:FFH Stock Forecast page.

Fairfax Completes C$700 Million Senior Notes Offering

On August 14, 2025, Fairfax Financial Holdings Limited successfully completed a C$700 million senior notes offering, consisting of C$400 million in 4.45% Senior Notes due 2035 and C$300 million in 5.10% Senior Notes due 2055. The proceeds from this offering are intended for refinancing, repaying, or redeeming existing debt and equity obligations, pursuing acquisition or investment opportunities, and for general corporate purposes, potentially impacting the company’s financial strategy and market positioning.

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 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.