FFH Stock Analysis: Fairfax Financial Holdings | TO
Insurance - Property & Casualty | TO, Canada | Market Cap: 55.217m CAD | 12M Return: 10.7% | CA3039011026 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 111M
EPS Trend: 54.9%
Qual. Beats: 0
Rev. Trend: 89.8%
Qual. Beats: 2
Warnings
No concerns identified
Tailwinds
Seasonality 11.8 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Fairfax Financial Holdings is a Toronto-based insurer and reinsurer operating across Canada, the U.S., the Middle East, Asia, and other markets. Its core business provides property, casualty, specialty, and life insurance, as well as reinsurance and investment management services. Property and casualty insurance covers risks such as damage to property, accidents, and liability claims; reinsurance allows insurers to transfer part of their risk to another company.
Through its non-insurance businesses, Fairfax also has interests in areas including restaurants, retail, food products, hospitality, travel, and sports equipment. The company was incorporated in 1951 and adopted its current name in 1987.
- Insurance pricing and disciplined underwriting support premium growth and margins
- Catastrophe losses and reserve revisions pressure underwriting profits
- Bond yields and equity markets drive investment income and gains
| Net Income: 4.44b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -2.39 > 1.0 |
| NWC/Revenue: 28.78% < 20% (prev 49.70%; Δ -20.91% < -1%) |
| CFO/TA 0.01 > 3% & CFO 1.63b > Net Income 4.44b |
| Net Debt (11.8b) to EBITDA (7.79b): 1.51 < 3 |
| Current Ratio: 2.03 > 1.5 & < 3 |
| Outstanding Shares: last quarter (22.2m) vs 12m ago 0.07% < -2% |
| Gross Margin: 27.24% > 18% (prev 20.62%; Δ 6.62% > 0.5%) |
| Asset Turnover: 30.81% > 50% (prev 30.17%; Δ 0.64% > 0%) |
| Interest Coverage Ratio: 8.39 > 6 (EBIT TTM 7.12b / Interest Expense TTM 849.1m) |
| A: 0.09 (Total Current Assets 18.6b - Total Current Liabilities 9.14b) / Total Assets 109b |
| B: 0.20 (Retained Earnings 22.3b / Total Assets 109b) |
| C: 0.07 (EBIT TTM 7.12b / Avg Total Assets 106b) |
| D: 0.34 (Book Value of Equity 26.2b / Total Liabilities 78.0b) |
| Altman-Z'' = 2.04 = BBB |
| DSRI: 3.0 (Receivables 12.4b/797.1m, Revenue 32.7b/31.2b) |
| GMI: 0.76 (GM 20.62% / 27.24%) |
| AQI: 1.10 (AQ_t 0.80 / AQ_t-1 0.72) |
| SGI: 1.05 (Revenue 32.7b / 31.2b) |
| TATA: 0.03 (NI 4.44b - CFO 1.63b) / TA 109b) |
| Beneish M = -1.50 (Cap -4..+1) = CCC |
As of October 31, 2026, the stock is trading at CAD 2501.52 with a total of 40,812 shares traded. Over the past week, the price has changed by +1.35%, over one month by +12.41%, over three months by +5.97% and over the past year by +10.71%.
Current recommended Stop Loss: 2418.00 (which is 3.3% or 1.5 ATR below the current price).
Fairfax Financial Holdings has no consensus analysts rating.
Market Cap USD = 39.5b (55.2b CAD * 0.7156 CAD.USD)
P/E Trailing = 8.7644
P/E Forward = 10.6383
P/S = 1.4331
P/B = 1.5625
P/EG = 0.2759
Revenue TTM = 32.7b USD
EBIT TTM = 7.12b USD
EBITDA TTM = 7.79b USD
Long Term Debt = 14.3b USD (from longTermDebt, last quarter)
Short Term Debt = 2.48b USD (from shortTermDebt, last fiscal year)
Debt = 18.0b USD (corrected: LT Debt 14.3b + ST Debt 2.48b) + Leases 1.19b
Net Debt = 11.8b USD (calculated: Debt 18.0b - CCE 6.19b)
Enterprise Value = 51.3b USD (39.5b + Debt 18.0b - CCE 6.19b)
Interest Coverage Ratio = 8.39 (Ebit TTM 7.12b / Interest Expense TTM 849.1m)
EV/FCF = 55.09x (Enterprise Value 51.3b / FCF TTM 930.9m)
FCF Yield = 1.82% (FCF TTM 930.9m / Enterprise Value 51.3b)
FCF Margin = 2.84% (FCF TTM 930.9m / Revenue TTM 32.7b)
Net Margin = 13.57% (Net Income TTM 4.44b / Revenue TTM 32.7b)
Gross Margin = 27.24% ((Revenue TTM 32.7b - Cost of Revenue TTM 23.8b) / Revenue TTM)
Gross Margin QoQ = none% (prev 15.38%)
Tobins Q-Ratio = 0.47 (Enterprise Value 51.3b / Total Assets 109b)
Interest Expense / Debt = 4.73% (Interest Expense 849.1m / Debt 18.0b)
Taxrate = 20.50% (1.29b / 6.27b)
NOPAT = 5.66b (EBIT 7.12b * (1 - 20.50%))
Current Ratio = 2.03 (Total Current Assets 18.6b / Total Current Liabilities 9.14b)
Debt / Equity = 0.68 (Debt 18.0b / totalStockholderEquity, last quarter 26.2b)
Debt / EBITDA = 1.51 (Net Debt 11.8b / EBITDA 7.79b)
Debt / FCF = 12.65 (Net Debt 11.8b / FCF TTM 930.9m)
Total Stockholder Equity = 26.2b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.18% (Net Income 4.44b / Total Assets 109b)
RoE = 16.94% (Net Income TTM 4.44b / Total Stockholder Equity 26.2b)
RoCE = 17.58% (EBIT 7.12b / Capital Employed (Equity 26.2b + L.T.Debt 14.3b))
RoIC = 5.63% (NOPAT 5.66b / Invested Capital 101b)
WACC = 4.80% (E(39.5b)/V(57.5b) * Re(5.28%) + D(18.0b)/V(57.5b) * Rd(4.73%) * (1-Tc(0.21)))
Discount Rate = 5.28% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -86.26 | Cagr: -5.54%
[DCF] Terminal Value 73.10% ; FCFF base≈1.90b ; Y1≈1.67b ; Y5≈1.35b
[DCF] Fair Price = 473.1 (EV 21.6b - Net Debt 11.8b = Equity 9.85b / Shares 20.8m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 54.91 | EPS CAGR: 23.01% | SUE: -0.38 | # QB: 0
Revenue Correlation: 89.80 | Revenue CAGR: 8.79% | SUE: 1.90 | # QB: 2
EPS current Quarter (2026-09-30): EPS=39.89 | Chg30d=+19.18% | Revisions=+0% | Analysts=1
EPS current Year (2026-12-31): EPS=151.65 | Chg30d=-1.18% | Revisions=+0% | GrowthEPS=+48.7% | GrowthRev=+25.4%
EPS next Year (2027-12-31): EPS=167.54 | Chg30d=+1.16% | Revisions=+0% | GrowthEPS=+10.5% | GrowthRev=+5.0%
[Analyst] Revisions Ratio: +0% (up=0, down=0)