Fairfax Financial Holdings (FFH) AI Stock Analysis

• Market Cap: $53.19B
• Dividend Yield: 0.97%
• Average Volume (3M): 45.30K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.61
• Revenue Growth: 13.82%
• EPS Growth: -6.68%
• Country: CA
• Employees: 47,040
• Sector: Financial
• Sector Strength: 88
• Industry: Insurance - Property & Casualty
• EPS (TTM): 238.35
• Shares Outstanding: 22,681,093
• 10 Day Avg. Volume: 29,486
• 30 Day Avg. Volume: 45,296
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.54
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2,443.41
• Price Target Upside: 11.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Fairfax Financial Holdings shows a robust financial performance and attractive valuation, with recent earnings and corporate events further bolstering market confidence. However, technical indicators suggest caution due to potential short-term volatility. The company's strong leadership and strategic direction, along with its resilient financial profile, provide a positive outlook.

Fairfax Financial Holdings Business Overview & Revenue Model

Company Description

Fairfax Financial Holdings Limited is a Toronto-based holding company engaged in property and casualty insurance and reinsurance. Founded in 1985, Fairfax operates globally through its subsidiaries, providing a wide range of insurance products and services. The company is known for its prudent investment strategies and focus on long-term value creation, with additional interests in various sectors including hospitality, agriculture, and energy through its diversified investment portfolio.

How the Company Makes Money

Fairfax Financial Holdings makes money primarily through its insurance and reinsurance operations. The company earns premiums by underwriting property and casualty insurance policies globally. In addition to its core insurance business, Fairfax generates significant revenue from its investment activities, leveraging its insurance float to invest in stocks, bonds, and alternative assets. Investment income and capital gains from these activities contribute considerably to Fairfax’s earnings. The company’s revenue model is bolstered by strategic acquisitions and partnerships that enhance its insurance capabilities and expand its investment opportunities. Fairfax's diversified investment approach and focus on value investing are key factors in its financial performance.

Fairfax Financial Holdings Financial Statement Overview

Summary

Fairfax Financial Holdings demonstrates strong profitability and improving cash flows despite fluctuating revenue growth. The company's strategic debt management is commendable, though reliance on liabilities and operational performance volatility require monitoring.

Income Statement

Fairfax Financial Holdings has demonstrated strong revenue and profit growth over recent years. The net profit margin has remained robust, supported by a significant increase in net income from the previous year. Despite a decline in total revenue from 2023 to 2024, the company maintains high gross profit margins, indicating operational efficiency. However, the absence of EBIT in 2024 suggests volatility in operational performance.

Balance Sheet

The company has maintained a stable equity position, with an improving debt-to-equity ratio reflecting better leverage management. The return on equity has been strong, supported by increasing net income. However, the equity ratio suggests moderate reliance on liabilities to finance assets, posing a potential risk in high-interest environments.

Cash Flow

Fairfax Financial Holdings has shown a significant improvement in free cash flow, reversing from negative values in previous years to a substantial positive in 2024. The operating cash flow to net income ratio indicates strong cash generation relative to earnings, enhancing liquidity and financial flexibility. This positive cash flow trajectory provides a strong buffer against potential future financial challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
28.45B	31.83B	25.82B	25.80B	19.79B
	Gross Profit
28.45B	25.80B	25.82B	25.80B	19.79B
	EBIT
5.64B	31.40B	1.34B	-1.03B	-4.29B
	EBITDA
7.04B	6.09B	2.03B	-100.50M	1.47B
	Net Income Common Stockholders
3.87B	4.38B	1.15B	3.40B	37.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.28B	7.96B	11.70B	25.34B	16.30B
	Total Assets
96.78B	91.99B	92.13B	86.65B	74.05B
	Total Debt
13.06B	10.80B	9.32B	7.75B	8.81B
	Net Debt
5.83B	5.04B	-2.38B	-17.59B	-7.49B
	Total Liabilities
68.43B	64.28B	71.79B	65.33B	56.53B
	Stockholders Equity
24.07B	22.95B	16.68B	16.39B	13.86B
Cash Flow		Free Cash Flow
3.59B	-553.50M	-4.84B	6.29B	-133.50M
	Operating Cash Flow
3.99B	-39.40M	-4.42B	6.64B	139.80M
	Investing Cash Flow
-1.32B	92.00M	384.80M	1.84B	-46.80M
	Financing Cash Flow
-1.56B	-1.07B	-1.29B	-1.19B	436.90M

Fairfax Financial Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2195.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2195.41 is above the 20-day moving average (MA) of 2048.91, above the 50-day MA of 2037.85, and above the 200-day MA of 1854.45, indicating a bullish trend. The MACD of 39.56 indicates Negative momentum. The RSI at 68.41 is Neutral, neither overbought nor oversold. The STOCH value of 93.65 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IFC	78 Outperform	C$54.48B	24.68	13.38%	1.62%	5.02%	77.36%
FFH	76 Outperform	$53.19B	9.24	16.48%	0.97%	13.82%	-6.68%
DFY	76 Outperform	C$7.92B	18.25	13.96%	0.97%	15.24%	23.01%
IAG	74 Outperform	C$12.75B	13.96	13.26%	2.51%	-17.69%	29.19%
SLF	70 Outperform	$47.52B	15.75	12.87%	3.95%	-12.72%	-0.16%
GWO	68 Neutral	C$48.27B	12.41	15.52%	4.39%	-2.40%	42.24%
Sector *	64 Neutral	$12.64B	9.74	8.05%	17044.60%	12.66%	-4.62%

Fairfax Financial Holdings Corporate Events

Fairfax Financial Holdings Reports Strong Q1 2025 Earnings Amid Investment Gains

Fairfax Financial Holdings reported a significant increase in net earnings for the first quarter of 2025, reaching $945.7 million compared to $776.5 million in the same period of 2024. This growth was driven by substantial net gains on investments, despite a decrease in adjusted operating income and significant catastrophe losses from California wildfires. The company’s property and casualty insurance and reinsurance operations maintained a strong performance with a consolidated combined ratio of 98.5% and underwriting profit of $96.9 million. The company also saw growth in gross and net premiums written, reflecting new business and rate increases.

Spark’s Take on TSE:FFH Stock

According to Spark, TipRanks’ AI Analyst, TSE:FFH is a Outperform.

Fairfax Financial Holdings demonstrates solid financial health, with strong profitability and cash flow improvements. The valuation is attractive with a low P/E ratio, suggesting potential upside. Despite some short-term technical volatility and challenges from unrealized bond losses, the company’s strategic direction and leadership support provide a positive outlook.

To see Spark’s full report on TSE:FFH stock, click here.

Fairfax Financial to Discuss Q1 2025 Results in Upcoming Conference Call

Fairfax Financial Holdings Limited announced a conference call scheduled for May 2, 2025, to discuss its first quarter results for 2025. This call will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders’ perspectives on Fairfax’s market positioning and operational strategies.

Spark’s Take on TSE:FFH Stock

According to Spark, TipRanks’ AI Analyst, TSE:FFH is a Outperform.

Fairfax Financial Holdings demonstrates solid financial health, with strong profitability and cash flow improvements. The valuation is attractive with a low P/E ratio, suggesting potential upside. Despite some short-term technical volatility and challenges from unrealized bond losses, the company’s strategic direction and leadership support provide a positive outlook.

To see Spark’s full report on TSE:FFH stock, click here.

Fairfax Financial Successfully Elects Directors at Annual Meeting

Fairfax Financial Holdings Limited announced the successful election of its twelve nominee directors during the Annual Shareholders’ Meeting held on April 10, 2025. The voting results indicate strong support for the nominees, reflecting confidence in the company’s leadership and strategic direction, which could positively influence its market position and stakeholder relations.

Spark’s Take on TSE:FFH Stock

According to Spark, TipRanks’ AI Analyst, TSE:FFH is a Outperform.

Fairfax Financial Holdings shows a strong financial foundation with impressive profitability and cash flow metrics. The earnings call further confirmed robust results and growth prospects. However, technical indicators suggest caution due to current bearish trends. Valuation metrics present an opportunity, given the low P/E ratio. Despite challenges like unrealized bond losses and catastrophe impacts, the overall outlook remains positive.

To see Spark’s full report on TSE:FFH stock, click here.

Fairfax Financial Holdings Announces Details of Hybrid Annual Shareholders’ Meeting

Fairfax Financial Holdings Limited has announced the details of its upcoming hybrid annual shareholders’ meeting, which will be held both in-person and virtually on April 10, 2025. The meeting will include a presentation by Chairman and CEO Prem Watsa, followed by a Q&A session. Shareholders can attend and vote through a web-based platform, and are encouraged to submit questions in advance. This hybrid format aims to increase accessibility and engagement among stakeholders.

Fairfax Financial Announces Quarterly Dividends for Preferred Shares

Fairfax Financial Holdings Limited has announced the declaration of quarterly dividends for its series of preferred shares, with specific dividend amounts and payment dates provided. Additionally, the company has set the quarterly dividend rates for its floating rate preferred shares for the upcoming period. This announcement reflects Fairfax’s ongoing financial strategies and commitments to its shareholders, potentially impacting investor perceptions and market positioning.

Fairfax Financial Holdings Achieves Record Underwriting Profit Amid Decreased Net Earnings for 2024

Fairfax Financial Holdings reported a net earnings decrease to $3,874.9 million for 2024 from $4,381.8 million in 2023, despite achieving a record underwriting profit of $1.8 billion and a consolidated combined ratio of 92.7%. The company’s property and casualty operations reported strong performance with adjusted operating income of $4.8 billion. Premium growth was fueled by the acquisition of Gulf Insurance, contributing significantly to the annual figures. However, unrealized foreign currency losses impacted comprehensive income, and the company undertook significant share repurchases. Fairfax ended the year with a robust financial position, including $2.5 billion in cash and investments, underscoring its strategic focus on financial stability.