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Fairfax Financial Holdings Ltd Shs Subord.Vtg FFH

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Stock XTSE Rating as of
CA$2,203.31 −15.75 (0.71%)
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As of Delayed Price Closed

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Fairfax Financial Holdings Has Been Playing With a Hot Hand

Brett Horn

While its primary business is insurance, Fairfax is in some ways more of an investment fund. Chair and CEO Prem Watsa has a long history of bold investment bets and has shown a willingness to be unorthodox when it comes to portfolio construction. We're somewhat skeptical of this approach, as we believe disciplined underwriting is a more reliable path to long-term value creation for insurers. Fairfax's underwriting record is relatively poor, although it has improved recently.

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Price vs Fair Value

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FFH is trading at a LOCK|<vBJ&N premium.
Price
CA$2,203.31
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Fairfax's large gains during the financial crisis highlight the massive returns that Watsa's unorthodox investing style is capable of generating.

Bears

Fairfax will post poor results and could destroy significant value if Watsa's investment views don't pan out.

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Trading Information

Previous Close Price
CA$2,219.06
Day Range
CA$2,199.34–2,216.10
52-Week Range
CA$2,066.16–2,700.00
Bid/Ask
CA$2,199.00 / CA$2,214.71
Shares Outstanding
22.37M
Market Cap
CA$45.76B
Volume/Avg
29,264 / 52,798

Key Statistics

Price/Earnings (Normalized)
7.81
Price/Sales
1.20
Dividend Yield (Trailing)
0.94%
Dividend Yield (Forward)
0.94%
Dividend Payment Schedule
Jan
Total Yield
9.80%

Company Profile

Fairfax Financial Holdings provides reinsurance and property and casualty insurance in Canada, the United States, and other international markets. The company also has some noninsurance operations such as restaurants. Fairfax has been led by Prem Watsa, its chair and CEO, since its formation in 1985.
Sector
Financial Services
Industry
Insurance - Property & Casualty
Stock Style Box
Large Value
Total Number of Employees
57,050
Website
https://www.fairfax.ca

Competitors

Valuation

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Metric
FFH
MKL
WRB
Price/Earnings (Normalized)
 7.8116.2014.36
Price/Book Value
 1.281.132.60
Price/Sales
 1.201.301.83
Price/Cash Flow
 —9.3314.58
Price/Earnings
FFH
MKL
WRB

Financial Strength

Metric
FFH
MKL
WRB
Quick Ratio
 ———
Current Ratio
 ———
Interest Coverage
 8.4015.5220.01
Quick Ratio
No chart available

Profitability

Metric
FFH
MKL
WRB
Return on Assets (Normalized)
 4.84%3.39%4.31%
Return on Equity (Normalized)
 20.69%12.77%19.65%
Return on Invested Capital (Normalized)
 13.11%10.78%15.96%
Return on Assets
FFH
MKL
WRB

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