(FFH) Fairfax Financial Holdings - Ratings and Ratios

Fairfax Financial Holdings Ltd (TO:FFH), a global leader in property and casualty insurance and reinsurance, also excels in investment management. Headquartered in Toronto, Canada, Fairfax operates through three main segments: Property and Casualty Insurance and Reinsurance, Life Insurance and Run-off, and Non-Insurance Companies. The companys diverse portfolio extends beyond insurance, encompassing restaurants, resorts, retail, agriculture, entertainment, real estate, and sports equipment. Fairfaxs strategic approach to risk management and investment strategies underscores its financial stability and global presence.

Founded in 1951 and renamed in 1987, Fairfax is recognized for its robust market position and commitment to efficient equity use, as evidenced by its strong return on equity (RoE) of 16.10%. The companys global operations span the United States, Canada, the Middle East, Asia, and other international markets, highlighting its extensive reach and diverse revenue streams.

Fairfaxs stock (TO:FFH) is currently trading at 2054.63 CAD, with a 20-day average volume of 44,566 shares. The stock is positioned above its 20, 50, and 200-day moving averages (2021.20, 2020.33, and 1826.40 respectively), indicating a bullish trend. The Average True Range (ATR) of 52.64 suggests moderate volatility, approximately 2.56% of the current price.

From a fundamental perspective, Fairfax boasts a market capitalization of 44.475 billion CAD, with a price-to-earnings (P/E) ratio of 8.79 and a forward P/E of 9.48, suggesting expected earnings growth. The price-to-book (P/B) ratio of 1.37 and price-to-sales (P/S) ratio of 1.28 indicate the market values the company slightly above book value and at a reasonable revenue multiple. The strong return on equity (RoE) of 16.10% highlights efficient equity utilization.

3-Month Forecast: Fairfaxs stock is expected to maintain its bullish trajectory, supported by its position above key moving averages and strong fundamental indicators. The stock is likely to target the 2100-2150 range in the next three months, with potential resistance near 2150. Support levels are anticipated around 2000, with a stop-loss recommendation below 1980. The moderate ATR suggests manageable volatility, with potential price fluctuations within a 52.64 range, supporting a conservative upside target of 2125 while maintaining a stop-loss at 1980 to mitigate downside risk.