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Fairfax India Holdings

TSX:FIH.U
Snowflake Description

Outstanding track record and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FIH.U
TSX
$937M
Market Cap
  1. Home
  2. CA
  3. Diversified Financials
Company description

Fairfax India Holdings Corporation, an investment holding company, engages in the investment activities in India. The last earnings update was 32 days ago. More info.


Add to Portfolio Compare Print
  • Fairfax India Holdings has significant price volatility in the past 3 months.
FIH.U Share Price and Events
7 Day Returns
-4.9%
TSX:FIH.U
-1.5%
CA Capital Markets
1.1%
CA Market
1 Year Returns
-56.1%
TSX:FIH.U
-19.5%
CA Capital Markets
-22.9%
CA Market
FIH.U Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Fairfax India Holdings (FIH.U) -4.9% -43.2% -51.9% -56.1% - -
CA Capital Markets -1.5% -22.8% -24.7% -19.5% -20.7% -20.9%
CA Market 1.1% -17.3% -23.4% -22.9% -20.8% -14.9%
1 Year Return vs Industry and Market
  • FIH.U underperformed the Capital Markets industry which returned -19.5% over the past year.
  • FIH.U underperformed the Market in Canada which returned -22.9% over the past year.
Price Volatility
FIH.U
Industry
5yr Volatility vs Market

FIH.U Value

 Is Fairfax India Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Fairfax India Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Fairfax India Holdings.

TSX:FIH.U Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $13.54 * 6.8%
$0.93
Book Value of Equity per Share Median Book Value from the past 5 years. $13.54
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:FIH.U
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.121 (1 + (1- 26.5%) (58.43%))
1.403
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.4
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.403 * 5.44%)
9.07%

Discounted Cash Flow Calculation for TSX:FIH.U using Excess Returns Model Model

The calculations below outline how an intrinsic value for Fairfax India Holdings is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

TSX:FIH.U Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (6.8% – 9.07%) * $13.54)
$-0.30
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.30 / (9.07% - 1.44%)
$-3.95
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $13.54 + $-3.95
$9.6
TSX:FIH.U Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in TSX:FIH.U represents 1.01441x of OTCPK:FFXD.F
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.01441x
Value per Share
(Listing Adjusted, USD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 9.60 x 1.01441
$9.73
Value per share (USD) From above. $9.73
Current discount Discount to share price of $6.23
= -1 x ($6.23 - $9.73) / $9.73
36%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Fairfax India Holdings is available for.
Intrinsic value
36%
Share price is $6.23 vs Future cash flow value of $9.73
Current Discount Checks
For Fairfax India Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Fairfax India Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Fairfax India Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Fairfax India Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Fairfax India Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:FIH.U PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $3.38
OTCPK:FFXD.F Share Price ** OTCPK (2020-04-06) in USD $6.14
Canada Capital Markets Industry PE Ratio Median Figure of 15 Publicly-Listed Capital Markets Companies 8.34x
Canada Market PE Ratio Median Figure of 498 Publicly-Listed Companies 10.51x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Fairfax India Holdings.

TSX:FIH.U PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OTCPK:FFXD.F Share Price ÷ EPS (both in USD)

= 6.14 ÷ 3.38

1.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fairfax India Holdings is good value based on earnings compared to the CA Capital Markets industry average.
  • Fairfax India Holdings is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Fairfax India Holdings's expected growth come at a high price?
Raw Data
TSX:FIH.U PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 1.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
Not available
North America Capital Markets Industry PEG Ratio Median Figure of 39 Publicly-Listed Capital Markets Companies 1.81x
Canada Market PEG Ratio Median Figure of 233 Publicly-Listed Companies 0.69x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Fairfax India Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Fairfax India Holdings's assets?
Raw Data
TSX:FIH.U PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $16.89
OTCPK:FFXD.F Share Price * OTCPK (2020-04-06) in USD $6.14
Canada Capital Markets Industry PB Ratio Median Figure of 160 Publicly-Listed Capital Markets Companies 0.82x
Canada Market PB Ratio Median Figure of 2,363 Publicly-Listed Companies 1x
TSX:FIH.U PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OTCPK:FFXD.F Share Price ÷ Book Value per Share (both in USD)

= 6.14 ÷ 16.89

0.36x

* Primary Listing of Fairfax India Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fairfax India Holdings is good value based on assets compared to the CA Capital Markets industry average.
X
Value checks
We assess Fairfax India Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Fairfax India Holdings has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FIH.U Future Performance

 How is Fairfax India Holdings expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5%
Expected Capital Markets industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Fairfax India Holdings expected to grow at an attractive rate?
  • Unable to compare Fairfax India Holdings's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Fairfax India Holdings's earnings growth to the Canada market average as no estimate data is available.
  • Unable to compare Fairfax India Holdings's revenue growth to the Canada market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
TSX:FIH.U Future Growth Rates Data Sources
Data Point Source Value (per year)
North America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 5%
North America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 2.2%
Canada Market Earnings Growth Rate Market Cap Weighted Average 5.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:FIH.U Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:FIH.U Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 335 1
TSX:FIH.U Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 726 37 516
2019-09-30 129 -30 24
2019-06-30 144 -85 29
2019-03-31 115 -51 15
2018-12-31 201 -93 96
2018-09-30 282 -145 141
2018-06-30 79 -433 -6
2018-03-31 454 -380 332
2017-12-31 624 -797 453
2017-09-30 514 -783 367
2017-06-30 651 -511 486
2017-03-31 344 -754 256

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Fairfax India Holdings is high growth as no earnings estimate data is available.
  • Unable to determine if Fairfax India Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:FIH.U Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Fairfax India Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:FIH.U Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
TSX:FIH.U Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 3.38
2019-09-30 0.16
2019-06-30 0.19
2019-03-31 0.10
2018-12-31 0.63
2018-09-30 0.93
2018-06-30 -0.04
2018-03-31 2.25
2017-12-31 3.10
2017-09-30 2.70
2017-06-30 3.88
2017-03-31 2.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Fairfax India Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Fairfax India Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Fairfax India Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FIH.U Past Performance

  How has Fairfax India Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Fairfax India Holdings's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Fairfax India Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • Fairfax India Holdings's 1-year earnings growth exceeds its 5-year average (435.4% vs 7.8%)
  • Fairfax India Holdings's earnings growth has exceeded the CA Capital Markets industry average in the past year (435.4% vs -9.4%).
Earnings and Revenue History
Fairfax India Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Fairfax India Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:FIH.U Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 726.50 516.34 81.29
2019-09-30 129.25 24.19 38.03
2019-06-30 144.50 29.19 39.22
2019-03-31 114.93 15.02 38.35
2018-12-31 201.37 96.43 37.99
2018-09-30 281.76 141.42 65.29
2018-06-30 78.54 -5.91 38.57
2018-03-31 453.79 332.33 102.38
2017-12-31 623.95 452.51 143.92
2017-09-30 514.04 366.87 111.42
2017-06-30 650.78 486.42 133.57
2017-03-31 344.07 256.09 64.47
2016-12-31 135.34 107.83 17.49
2016-09-30 152.61 126.19 15.78
2016-06-30 102.33 78.11 14.84
2016-03-31 70.90 37.67 13.36
2015-12-31 58.68 40.94 10.91

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Fairfax India Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Fairfax India Holdings used its assets more efficiently than the CA Capital Markets industry average last year based on Return on Assets.
  • Fairfax India Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Fairfax India Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Fairfax India Holdings has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FIH.U Health

 How is Fairfax India Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Fairfax India Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Fairfax India Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Fairfax India Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Fairfax India Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Fairfax India Holdings Company Filings, last reported 3 months ago.

TSX:FIH.U Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 2,577.85 547.23 48.71
2019-09-30 2,064.75 595.84 5.91
2019-06-30 2,029.39 594.46 43.63
2019-03-31 2,077.90 548.61 58.03
2018-12-31 2,117.95 547.23 21.24
2018-09-30 2,014.38 545.84 30.21
2018-06-30 2,056.21 544.46 141.21
2018-03-31 2,229.67 400.00 26.42
2017-12-31 2,132.46 400.00 40.73
2017-09-30 1,996.66 400.00 38.78
2017-06-30 2,075.59 0.00 31.28
2017-03-31 1,796.69 0.00 37.20
2016-12-31 1,075.45 223.77 174.39
2016-09-30 1,114.79 222.40 196.39
2016-06-30 1,033.16 0.00 104.09
2016-03-31 1,015.17 0.00 336.86
2015-12-31 1,013.33 0.00 62.61
  • Fairfax India Holdings's level of debt (21.2%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Fairfax India Holdings's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (6.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 16.6x coverage).
X
Financial health checks
We assess Fairfax India Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Fairfax India Holdings has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FIH.U Dividends

 What is Fairfax India Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Fairfax India Holdings dividends.
If you bought $2,000 of Fairfax India Holdings shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Fairfax India Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Fairfax India Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:FIH.U Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Canada Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 6%
Canada Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 4.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:FIH.U Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Fairfax India Holdings has not reported any payouts.
  • Unable to verify if Fairfax India Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Fairfax India Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Fairfax India Holdings has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Fairfax India Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Fairfax India Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Fairfax India Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FIH.U Management

 What is the CEO of Fairfax India Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chandran Ratnaswami
COMPENSATION $1,039,259
AGE 70
CEO Bio

Mr. Chandran Ponnaiah Ratnaswami, B.E. (Civil), MBA, serves as Managing Director of Hamblin Watsa Investment Counsel Ltd. At Hamblin Watsa, Mr. Ratnaswami is responsible for portfolio investments in Asia. Mr. Ratnaswami serves as the Chief Executive Officer and Director of Fairfax India Holdings Corporation. He has 26 years of experience in the field of investment management. He joined Hamblin Watsa in 1994 as Director of International Investments. He was the Owner and President of an industrial distribution company and a senior executive at a large multinational consumer packaged food company. He serves as Vice Chairman of Thai Reinsurance Public Company Limited since August 31, 2017. Mr. Ratnaswami has been a Non-Executive Director of Thomas Cook India Limited since August 22, 2012. He has been an Additional Director at Kempegowda International Airport Limited since March 2017. He has been a Director of Fairfax India Holdings Corporation since 2015. He has been a Director of ZoomerMedia Ltd since October 26, 2010. He has been a Director of Thai Reinsurance Public Company Limited since February 2012. He has been a Director of Ridley Inc. since December 2008. He served as a Non-Executive Director at ICICI Lombard General Insurance Company Limited until July 2, 2017. He has been Non-Executive Director at IIFL Finance Ltd (Former name is IIFL Holdings Limited) since May 15, 2012. He served as a Director of MS First Capital Insurance Ltd.(formerly, First Capital Insurance Limited). He serves as a Director of Fairbridge Capital in India. He serves as Independent Director at Zoomermedia Limited. He has been a Non-Executive Director at Quess Corp Limited since January 18, 2016. Mr. Ratnaswami serves as the Chairman of Lansing United Church in Toronto, Canada. Mr. Ratnsaswami serves on the board of directors National Collateral Management Services Private Limited, Sanmar Engineering Services Limited, Bangalore International Airport Limited. He also serves as a director of a number of insurance and non-insurance companies in India and abroad. He holds a B.Tech in Civil Engineering from Indian Institute of Technology, Madras, India and a Masters degree in Business Administration from the Rotman School of Management, University of Toronto, Canada.

CEO Compensation
  • Chandran's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Chandran's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Fairfax India Holdings management team in years:

3.7
Average Tenure
62
Average Age
  • The tenure for the Fairfax India Holdings management team is about average.
Management Team

Chandran Ratnaswami

TITLE
CEO & Director
COMPENSATION
$1M
AGE
70

Amy Sherk

TITLE
Chief Financial Officer
COMPENSATION
$151K
TENURE
0.7 yrs

Amy Tan

TITLE
CEO of FIH Mauritius Investments Ltd & FIH Private Investments Ltd
COMPENSATION
$289K
AGE
44

John Varnell

TITLE
Vice President of Corporate Affairs
COMPENSATION
$220K
AGE
62
TENURE
3.7 yrs

V. Watsa

TITLE
Founder & Chairman
AGE
69

Keir Hunt

TITLE
General Counsel & Corporate Secretary
AGE
38
TENURE
3.7 yrs
Board of Directors Tenure

Average tenure and age of the Fairfax India Holdings board of directors in years:

5.3
Average Tenure
67
Average Age
  • The tenure for the Fairfax India Holdings board of directors is about average.
Board of Directors

Chandran Ratnaswami

TITLE
CEO & Director
COMPENSATION
$1M
AGE
70
TENURE
5.3 yrs

V. Watsa

TITLE
Founder & Chairman
AGE
69
TENURE
5.3 yrs

Tony Griffiths

TITLE
Lead Director
COMPENSATION
$30K
AGE
88

Alan Horn

TITLE
Independent Director
COMPENSATION
$30K
AGE
67
TENURE
5.3 yrs

Chris Hodgson

TITLE
Independent Director
COMPENSATION
$30K
AGE
57
TENURE
5.3 yrs

Deepak Parekh

TITLE
Independent Director
COMPENSATION
$80K
AGE
75
TENURE
5.3 yrs

Sumit Maheshwari

TITLE
Director
AGE
37
TENURE
1.7 yrs

Lauren Templeton

TITLE
Independent Director
COMPENSATION
$30K
AGE
42
TENURE
1.7 yrs

Gopalakrishnan Soundarajan

TITLE
Director
AGE
56
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. Aug 19 Buy Brandon Sweitzer Individual 15. Aug 19 15. Aug 19 2,250 $11.76 $26,460
09. Aug 19 Buy John Ralph Palmer Individual 08. Aug 19 08. Aug 19 5,500 $12.14 $66,781
27. Jun 19 Buy The Bradstreet Family Foundation,Endowment Arm Company 25. Jun 19 25. Jun 19 20,000 $9.87 $197,355
X
Management checks
We assess Fairfax India Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Fairfax India Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FIH.U News

Simply Wall St News

FIH.U Company Info

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 founded in 2014 and is headquartered in Toronto, Canada. Fairfax India Holdings Corporation is a subsidiary of Fairfax Financial Holdings Limited.

Details
Name: Fairfax India Holdings Corporation
FIH.U
Exchange: TSX
Founded: 2014
$936,552,509
152,037,745
Website: http://www.fairfaxindia.ca
Address: Fairfax India Holdings Corporation
95 Wellington Street West,
Suite 800,
Toronto,
Ontario, M5J 2N7,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OTCPK FFXD.F Subordinate Voting Shares Pink Sheets LLC US USD 12. Mar 2015
TSX FIH.U Subordinate Voting Shares The Toronto Stock Exchange CA USD 12. Mar 2015
BMV FIHU N Subordinate Voting Shares Bolsa Mexicana de Valores MX MXN 12. Mar 2015
Number of employees
Current staff
Staff numbers
11
Fairfax India Holdings employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 03:26
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/02/18
Last earnings filing: 2020/03/06
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.