Fairfax India SV USF (FIH.U) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): 4.1
• Beta (1Y): N/A
• Revenue Growth: -85.14%
• EPS Growth: -80.02%
• Country: CA
• Employees: 10
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 2.59
• Shares Outstanding: N/A
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 15.27
• P/FCF Ratio: -53.61
• Enterprise Value/Market Cap: 10.00T>
• Enterprise Value/Revenue: 10.63
• Enterprise Value/Gross Profit: 12.45
• Enterprise Value/Ebitda: 4.41
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ―
• Action: Reiterated Date: 03/09/26
• Date: Action: Reiterated 03/09/26

The score is driven primarily by mixed financial performance: a strong, conservatively levered balance sheet is offset by volatile results and, most importantly, negative operating/free cash flow in 2024–2025 that weakens earnings quality. Valuation is supportive due to an extremely low P/E, while technical signals cannot be assessed because indicators were not provided.

Positive Factors

Conservative balance sheet

Low leverage and a large equity base provide durable financial flexibility: the company can hold illiquid positions through market cycles, withstand temporary mark-to-market losses, and access balance-sheet capacity to support follow-on investments or opportunistic purchases without stressing solvency.

Long-term investment mandate

A patient, investment-holding business model aligns capital deployment with long-term value creation in growing Indian markets. Structural focus on minority/controlling stakes lets management pursue multi-year appreciation and income, reducing pressure for short-term exits and enabling strategic value creation.

Proven capacity for sizable profits

The portfolio has produced material reported earnings in profitable years, demonstrating the team's ability to source and realize high-return investments. When market conditions allow, this capability can translate into meaningful capital appreciation and potential distributable income for shareholders.

Negative Factors

Weak cash generation

Two consecutive years of negative operating and free cash flow indicate earnings are not being converted into cash. This raises durable liquidity risk, may force asset sales to fund operations or investments, and undermines the firm's ability to deploy capital without increasing funding activity.

Volatile revenue and earnings

Large swings including a material loss in 2024 and a sizable revenue decline in 2025 reflect structural volatility in investment outcomes. This reduces predictability of returns and distributable cash, complicates multi-year planning, and raises the bar for consistent capital allocation performance.

Earnings tied to fair-value swings

Heavy reliance on mark-to-market gains makes reported earnings cyclical and often non-cash. This structural characteristic can mask underlying cash performance, inflate net income in favorable markets, and make it harder to assess sustainable earnings power and funding needs over the medium term.

Fairfax India SV USF Business Overview & Revenue Model

Company Description

Fairfax India Holdings Corporation, an investment holding company, engages in the investment activities in India. It invests in public and private equity securities and debt instruments in India and Indian businesses, or other businesses with customers, suppliers, or business primarily conducted in, or dependent on, India. The company was incorporated in 2014 and is headquartered in Toronto, Canada. Fairfax India Holdings Corporation operates as a subsidiary of Fairfax Financial Holdings Limited.

How the Company Makes Money

Fairfax India makes money through capital appreciation and income generation from its investment portfolio. The company invests in a diverse range of Indian businesses, gaining profits primarily from the appreciation of its equity stakes and dividends received. Additionally, Fairfax India may earn interest income from its debt investments. The company's strategy is to leverage its deep understanding of the Indian market and its strong network of local partners to identify and nurture high-potential investment opportunities, thereby generating substantial returns for its investors.

Fairfax India SV USF Financial Statement Overview

Summary

Strong capital base and low leverage support stability, but earnings and revenue have been volatile (including a 2024 loss). Cash generation is a key concern with negative operating/free cash flow in both 2024 and 2025 despite strong 2025 net income, raising quality-of-earnings and liquidity risk.

Income Statement

Profitability has been strong in several years (2021–2023 and 2025) with very high profit margins and sizable net income (2025: ~418M), but results are volatile with a material loss in 2024. Revenue has also been inconsistent, including a sharp decline in 2025 (down ~13.8%) and large swings over the period, which reduces confidence in earnings durability.

Balance Sheet

The balance sheet looks conservatively levered for the period shown, with debt-to-equity consistently low (~0.16–0.22) and a large equity base (~3.07B in 2025) supporting total assets (~4.04B). Returns on equity are generally solid in profitable years (about 12–18%), though the 2024 loss temporarily pushed returns negative—highlighting that asset values/earnings can swing even with modest leverage.

Cash Flow

Cash generation is the key weak spot: operating cash flow and free cash flow turned negative in 2024 and remained negative in 2025 (about -31.7M), despite strong reported net income in 2025—suggesting earnings were not backed by cash in the most recent year. Earlier years showed positive cash flow (notably 2022), but the recent two-year pattern increases liquidity and quality-of-earnings risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	111.14M	59.65M	490.09M	234.97M	567.57M
Gross Profit	68.24M	34.65M	465.09M	209.97M	542.26M
EBITDA	568.73M	26.21M	451.90M	195.97M	533.53M
Net Income	417.71M	-41.17M	371.77M	191.44M	494.51M
Balance Sheet
Total Assets	4.04B	3.63B	3.82B	3.37B	3.58B
Cash, Cash Equivalents and Short-Term Investments	8.10M	59.32M	174.62M	147.45M	30.38M
Total Debt	497.96M	498.35M	497.83M	497.31M	496.79M
Total Liabilities	813.46M	673.52M	736.76M	608.80M	681.91M
Stockholders Equity	3.07B	2.83B	2.96B	2.64B	2.77B
Cash Flow
Free Cash Flow	-31.66M	-103.44M	66.61M	152.34M	61.09M
Operating Cash Flow	-31.66M	-103.44M	66.61M	152.34M	61.09M
Investing Cash Flow	-9.18M	0.00	0.00	0.00	0.00
Financing Cash Flow	-10.62M	-8.42M	-37.25M	-35.58M	-51.30M

Fairfax India SV USF Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URB.A	82 Outperform	C$355.06M	1.90	19.86%	1.47%	-73.34%	40.59%
URB	81 Outperform	C$355.06M	1.90	19.86%	1.43%	-73.34%	40.59%
AGF.B	79 Outperform	C$1.21B	7.10	9.85%	3.01%	11.23%	30.44%
SEC	74 Outperform	C$817.83M	1.28	9.23%	―	22.33%	-25.06%
CVG	71 Outperform	C$1.02B	2.39	5.72%	0.14%	-44.78%	-95.84%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FIH.U	60 Neutral	―	4.06	1.97%	―	-85.14%	-80.02%

Fairfax India SV USF Corporate Events

Fairfax India Swings to Profit on Strong Investment Gains and Expands Indian Portfolio

Fairfax India reported a sharp turnaround for 2025, posting net earnings of $410.5 million, or $3.05 per diluted share, versus a loss a year earlier, as book value per share rose 9.4% to $22.94 on strong gains from key Indian investments. Results were driven by sizable unrealized gains in holdings such as BIAL, IIFL Finance and CSB Bank, realized gains from the sale of its Saurashtra stake, and robust dividend and interest income, partially offset by foreign currency losses tied to the weaker Indian rupee.

The company increased its exposure to BIAL with an additional 10% stake funded under deferred terms supported by an expanded revolving credit facility, while continuing share buybacks that reduced its subordinate voting share count. With $50.7 million in cash and marketable securities and $168.5 million of undrawn credit at year-end, Fairfax India underscored its strong liquidity, giving it flexibility to pursue further investments in India and maintain capital allocation initiatives that may benefit shareholders over time.