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Fairfax Financial Holdings Ltd Shs Subord.Vtg FFH

Morningstar Rating
CAD 1,502.00 −11.58 (0.77%)
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Company Report

Higher Interest Rates Are Boosting Fairfax

While its primary business is insurance, Fairfax is in some ways more of an investment fund. Chairman 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. As a result, compared with other insurers, the company's results tend to be driven more by results on the investment side. We're somewhat skeptical of this approach, as we believe disciplined underwriting is a more reliable path to long-term value creation for insurers, and Fairfax's underwriting record is relatively poor.

Price vs Fair Value

FFH is trading at a 655% premium.
Price
CAD 1,502.00
Fair Value
CAD 4,359.00
Uncertainty
Medium
1-Star Price
CAD 8,191.00
5-Star Price
CAD 641.00
Economic Moat
Ytqc
Capital Allocation
Nbwpwqn

Bulls Say, Bears Say

Bulls

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

Bears

Fairfax will continue to post poor results and could destroy significant value if Watsa's investment thesis doesn't pan out.

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News

Trading Information

Previous Close Price
CAD 1,513.58
Day Range
CAD 1,491.281,524.95
52-Week Range
CAD 939.051,583.70
Bid/Ask
CAD 1,497.00 / CAD 1,503.00
Market Cap
CAD 35.08 Bil
Volume/Avg
39,219 / 47,322

Key Statistics

Price/Earnings (Normalized)
8.10
Price/Sales
1.06
Dividend Yield (Trailing)
1.35%
Dividend Yield (Forward)
1.35%
Total Yield
2.75%

Company Profile

Fairfax 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 chairman and CEO, since its formation in 1985.
Sector
Financial Services
Industry
Insurance - Property & Casualty
Stock Style Box
Large Core
Total Number of Employees
51,044

Competitors

Valuation

Metric
FFH
MKL
WRB
Price/Earnings (Normalized)
8.1025.1214.73
Price/Book Value
1.251.352.67
Price/Sales
1.061.261.76
Price/Cash Flow
6.6715.33
Price/Earnings
FFH
MKL
WRB

Financial Strength

Metric
FFH
MKL
WRB
Quick Ratio
Current Ratio
Interest Coverage
10.6719.3516.33
Quick Ratio
No chart available

Profitability

Metric
FFH
MKL
WRB
Return on Assets (Normalized)
4.66%4.87%4.13%
Return on Equity (Normalized)
20.44%18.75%20.74%
Return on Invested Capital (Normalized)
12.68%14.58%15.82%
Return on Assets
FFH
MKL
WRB
See how this stock stacks up to its competitors with Morningstar Investor

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