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Fairfax Financial Holdings

TSX:FFH.PRM
Snowflake Description

Established dividend payer and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FFH.PRM
TSX
CA$15B
Market Cap
  1. Home
  2. CA
  3. Insurance
Company description

Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally. The last earnings update was 74 days ago. More info.


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FFH.PRM Share Price and Events
7 Day Returns
1.2%
TSX:FFH.PRM
1.1%
CA Insurance
-0.5%
CA Market
1 Year Returns
-21.4%
TSX:FFH.PRM
9.4%
CA Insurance
1.1%
CA Market
FFH.PRM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Fairfax Financial Holdings (FFH.PRM) 1.2% -2.8% -5.7% -21.4% -13.2% -
CA Insurance 1.1% 0% 1.7% 9.4% 11.2% 19.9%
CA Market -0.5% -1.9% -1.6% 1.1% 5.5% 8.6%
1 Year Return vs Industry and Market
  • FFH.PRM underperformed the Insurance industry which returned 9.4% over the past year.
  • FFH.PRM underperformed the Market in Canada which returned 1.1% over the past year.
Price Volatility
FFH.PRM
Industry
5yr Volatility vs Market

FFH.PRM Value

 Is Fairfax Financial 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 Financial 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 Financial Holdings.

TSX:FFH.PRM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 8 analysts.
= Stable Book Value * Return on Equity
= $533.82 * 12.2%
$64.86
Book Value of Equity per Share Weighted future Book Value estimates from 8 analysts. $533.82
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

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:FFH.PRM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.67
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.671 (1 + (1- 26.5%) (68.88%))
0.879
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.879 * 5.96%)
7.18%

Discounted Cash Flow Calculation for TSX:FFH.PRM using Excess Returns Model Model

The calculations below outline how an intrinsic value for Fairfax Financial 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:FFH.PRM Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.2% – 7.18%) * $533.82)
$26.51
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $26.51 / (7.18% - 1.95%)
$506.24
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $533.82 + $506.24
$1040.05
TSX:FFH.PRM Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:FFH)
1.317
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $1040.05 x 1.317
CA$1369.98
Non-primary Listing Adjustment Factor 1 share in TSX:FFH.PRM represents 0.03515x of TSX:FFH
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.03515x
Value per Share
(Listing Adjusted, CAD)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 1,369.98 x 0.03515
CA$48.15
Value per share (CAD) From above. CA$48.15
Current discount Discount to share price of CA$19.70
= -1 x (CA$19.70 - CA$48.15) / CA$48.15
59.1%

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

Current Discount
Amount off the current price Fairfax Financial Holdings is available for.
Intrinsic value
>50%
Share price is CA$19.7 vs Future cash flow value of CA$48.15
Current Discount Checks
For Fairfax Financial Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Fairfax Financial Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Fairfax Financial Holdings's share price is below the future cash flow value, and 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 Financial Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Fairfax Financial Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:FFH.PRM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $31.16
TSX:FFH Share Price ** TSX (2019-10-11) in CAD CA$560.48
TSX:FFH Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.759 $425.5
Canada Insurance Industry PE Ratio Median Figure of 12 Publicly-Listed Insurance Companies 12.79x
Canada Market PE Ratio Median Figure of 535 Publicly-Listed Companies 13.7x

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

** Primary Listing of Fairfax Financial Holdings.

TSX:FFH.PRM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:FFH Share Price ÷ EPS (both in USD)

= 425.5 ÷ 31.16

13.65x

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

  • Fairfax Financial Holdings is overvalued based on earnings compared to the CA Insurance industry average.
  • Fairfax Financial Holdings is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Fairfax Financial Holdings's expected growth come at a high price?
Raw Data
TSX:FFH.PRM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.65x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
-4.2%per year
Canada Insurance Industry PEG Ratio Median Figure of 10 Publicly-Listed Insurance Companies 1.05x
Canada Market PEG Ratio Median Figure of 249 Publicly-Listed Companies 0.87x

*Line of best fit is calculated by linear regression .

TSX:FFH.PRM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.65x ÷ -4.2%

-3.28x

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

  • Fairfax Financial Holdings earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Fairfax Financial Holdings's assets?
Raw Data
TSX:FFH.PRM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $464.86
TSX:FFH Share Price * TSX (2019-10-11) in CAD CA$560.48
TSX:FFH Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.759 $425.5
Canada Insurance Industry PB Ratio Median Figure of 14 Publicly-Listed Insurance Companies 1.11x
Canada Market PB Ratio Median Figure of 2,465 Publicly-Listed Companies 1.35x
TSX:FFH.PRM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:FFH Share Price ÷ Book Value per Share (both in USD)

= 425.5 ÷ 464.86

0.92x

* Primary Listing of Fairfax Financial Holdings.

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

  • Fairfax Financial Holdings is good value based on assets compared to the CA Insurance industry average.
X
Value checks
We assess Fairfax Financial 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 Insurance 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 Insurance industry average (and greater than 0)? (1 check)
  5. Fairfax Financial 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.

FFH.PRM Future Performance

 How is Fairfax Financial Holdings expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

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
-4.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Fairfax Financial Holdings expected to grow at an attractive rate?
  • Fairfax Financial Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Fairfax Financial Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • Fairfax Financial Holdings's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:FFH.PRM Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:FFH.PRM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts -4.2%
TSX:FFH.PRM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 0.3%
Canada Insurance Industry Earnings Growth Rate Market Cap Weighted Average 11.4%
Canada Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.1%
Canada Market Earnings Growth Rate Market Cap Weighted Average 13.3%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.7%

*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:FFH.PRM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:FFH.PRM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 20,349 1,687 1
2020-12-31 20,589 1,373 3
2019-12-31 20,754 1,929 3
2019-10-14
TSX:FFH.PRM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 19,695 309 847
2019-03-31 18,464 1,809 416
2018-12-31 17,758 -1,924 331
2018-09-30 17,881 -1,497 1,678
2018-06-30 18,347 -926 2,049
2018-03-31 17,395 -1,384 2,297
2017-12-31 15,206 2,734 1,696
2017-09-30 12,678 5,239 126
2017-06-30 10,202 3,334 -350
2017-03-31 9,851 2,322 -423
2016-12-31 9,300 1,258 -557
2016-09-30 9,972 -847 249

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Fairfax Financial Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Fairfax Financial Holdings's revenue is expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).
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:FFH.PRM 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 8 Analyst Estimates (S&P Global) See Below

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

TSX:FFH.PRM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 58.02 74.88 47.50 3.00
2020-12-31 48.18 57.55 38.92 8.00
2019-12-31 64.71 68.88 61.64 8.00
2019-10-14
TSX:FFH.PRM Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 31.16
2019-03-31 15.21
2018-12-31 12.03
2018-09-30 60.74
2018-06-30 73.97
2018-03-31 86.45
2017-12-31 66.74
2017-09-30 5.18
2017-06-30 -15.12
2017-03-31 -18.25
2016-12-31 -24.18
2016-09-30 10.93

*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.
  • Fairfax Financial Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Fairfax Financial 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 Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada 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 Financial 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.

FFH.PRM Past Performance

  How has Fairfax Financial 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 Financial Holdings's growth in the last year to its industry (Insurance).
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 Financial Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • Fairfax Financial Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Fairfax Financial Holdings's 1-year earnings growth is negative, it can't be compared to the CA Insurance industry average.
Earnings and Revenue History
Fairfax Financial 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 Financial Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:FFH.PRM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 19,694.80 846.60 2,427.30
2019-03-31 18,463.90 415.80 2,446.70
2018-12-31 17,757.70 330.90 2,455.90
2018-09-30 17,880.70 1,677.80 2,463.40
2018-06-30 18,347.00 2,048.60 2,445.50
2018-03-31 17,394.80 2,297.30 2,240.50
2017-12-31 15,206.00 1,696.00 2,054.90
2017-09-30 12,677.80 125.70 1,869.10
2017-06-30 10,201.90 -349.60 1,693.70
2017-03-31 9,850.70 -422.60 1,643.30
2016-12-31 9,299.60 -556.50 1,603.20
2016-09-30 9,972.10 249.00 1,566.00
2016-06-30 10,517.00 672.00 1,569.80
2016-03-31 9,142.60 247.00 1,537.50
2015-12-31 9,344.00 522.40 1,470.10
2015-09-30 8,970.50 439.80 1,359.20
2015-06-30 8,648.40 473.50 1,293.20
2015-03-31 9,523.30 1,019.80 1,248.10
2014-12-31 10,017.90 1,576.80 1,227.20
2014-09-30 9,627.90 1,545.90 1,228.60
2014-06-30 8,094.50 511.80 1,179.80
2014-03-31 7,042.80 -10.00 1,156.60
2013-12-31 5,944.90 -634.20 1,140.90
2013-09-30 7,018.60 -227.40 1,142.50
2013-06-30 7,789.40 377.00 1,144.20
2013-03-31 8,176.10 627.90 1,132.80
2012-12-31 8,016.00 466.40 1,119.70

*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 Financial Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Fairfax Financial Holdings used its assets more efficiently than the CA Insurance industry average last year based on Return on Assets.
  • Fairfax Financial Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Fairfax Financial 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 Insurance 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 Financial Holdings has a total score of 2/6, 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.

FFH.PRM Health

 How is Fairfax Financial 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 Financial Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Fairfax Financial Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Fairfax Financial Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Fairfax Financial 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 covered by short term assets, assets are 3.2x 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 Financial Holdings Company Filings, last reported 3 months ago.

TSX:FFH.PRM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 17,843.20 8,093.90 10,616.00
2019-03-31 17,834.20 7,345.00 7,228.00
2018-12-31 17,365.20 6,480.40 6,730.70
2018-09-30 17,956.10 6,577.50 9,546.80
2018-06-30 18,439.80 6,694.90 11,124.50
2018-03-31 18,748.90 7,018.20 12,892.50
2017-12-31 18,412.00 6,414.10 18,123.50
2017-09-30 17,413.10 6,415.50 15,670.90
2017-06-30 12,656.70 4,775.20 11,358.90
2017-03-31 12,235.40 4,679.10 11,194.80
2016-12-31 11,820.10 4,767.60 10,535.50
2016-09-30 12,754.00 4,209.40 5,180.30
2016-06-30 12,559.20 3,793.80 5,271.90
2016-03-31 12,377.50 3,788.10 5,938.00
2015-12-31 12,018.90 3,351.50 6,835.00
2015-09-30 12,006.00 3,455.70 7,145.50
2015-06-30 11,442.30 3,479.00 6,451.30
2015-03-31 11,080.40 3,347.40 5,433.70
2014-12-31 9,743.80 3,179.00 5,640.10
2014-09-30 9,883.90 3,319.40 6,051.60
2014-06-30 9,484.30 3,109.60 6,851.00
2014-03-31 9,094.00 3,053.30 7,160.90
2013-12-31 8,460.50 2,994.50 7,505.60
2013-09-30 8,046.80 3,227.30 6,479.70
2013-06-30 8,586.90 3,174.70 6,971.50
2013-03-31 8,786.90 3,220.90 6,906.20
2012-12-31 8,894.50 3,048.60 7,427.40
  • Fairfax Financial Holdings's level of debt (45.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (32.8% vs 45.4% today).
  • Debt is not well covered by operating cash flow (3.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).
X
Financial health checks
We assess Fairfax Financial 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 Financial Holdings has a total score of 2/6, 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.

FFH.PRM Dividends

 What is Fairfax Financial 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
2.35%
Current annual income from Fairfax Financial Holdings dividends. Estimated to be 2.33% next year.
If you bought CA$2,000 of Fairfax Financial Holdings shares you are expected to receive CA$47 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?
  • Fairfax Financial Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.03%).
  • Fairfax Financial Holdings's dividend is below the markets top 25% of dividend payers in Canada (5.98%).
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:FFH.PRM 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 8 Analyst Estimates (S&P Global) See Below
Canada Insurance Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 4.1%
Canada Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

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

TSX:FFH.PRM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 10.00 1.00
2020-12-31 10.02 4.00
2019-12-31 9.81 4.00
2019-10-14
TSX:FFH.PRM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-03 10.000 2.161
2018-03-09 10.000 1.938
2018-02-15 10.000 1.989
2017-01-04 10.000 2.072
2016-03-11 10.000 1.906
2016-02-18 10.000 1.872
2015-01-05 10.000 1.996
2014-01-03 10.000 2.219
2013-01-04 10.000 2.519
2012-10-25 10.000 2.766
2012-07-27 10.000 2.640
2012-01-04 10.000 2.500
2011-01-05 10.000 2.535
2010-01-05 10.000 2.612
2009-01-06 8.000 2.689

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Fairfax Financial Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).
X
Income/ dividend checks
We assess Fairfax Financial 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 Financial Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Fairfax Financial Holdings has a total score of 5/6, see the detailed checks below.


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

FFH.PRM Management

 What is the CEO of Fairfax Financial 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
V. Watsa
COMPENSATION $1,318,207
AGE 69
TENURE AS CEO 34.8 years
CEO Bio

Mr. V. Prem Watsa founded Fairfax Financial Holdings Limited in 1985 and has been its Chairman and Chief Executive Officer since 1985. Mr. Watsa serves as the President of 1109519 Ontario Limited, 810679 Ontario Limited, FFHL Share Option 1 Corp. and The Sixty Two Investment Company Ltd. He serves as Vice President of FFHL Group Limited. He is the Founder of Fairfax India Holdings Corporation and has been its Chairman of the Board since 2015. He has a 40-year track record in investment management. He is the Founder of Fairfax Africa Holdings Corporation. Mr. Watsa serves as the Chairman of Fairfax Africa Holdings Corporation since 2016, 4129768 Canada Inc., Federated Insurance Company of Canada, Federated Life Insurance Company of Canada, and TIG Holdings, Inc. He serves as the Chairman at Fairfax Africa Fund, LLC. Mr. Watsa serves as Chief Executive Officer, Chairman, and Director of Fairfax Financial Holdings Limited at Northbridge Financial Corporation. He served as a Director at Crum & Forster Holdings Corp. Mr. Watsa serves as a Director of Commonwealth Insurance Company, Cunningham Lindsey U.S., Inc., Hudson Insurance Company, Lindsey Morden Acquisitions, Lombard General Insurance Company of Canada, Lombard Insurance Company, Markel Insurance Company of Canada, The Sixty Three Foundation, The Sixty Four Foundation, Zenith Insurance Company, 1109519 Ontario Limited, 810679 Ontario Limited, FFHL Share Option 1 Corp., The Sixty Two Investment Company Limited, Hamblin Watsa Investment Counsel Ltd. and FFHL Group Limited. He was a Vice President and Secretary of Hamblin Watsa Investment Counsel Ltd., since 1985. He serves as Vice President and Director of Hamblin Watsa Investment Counsel Ltd. He served as the Chief Executive Officer of Crum & Forster Holdings Corp. from May 20, 2003 to March 31, 2004. Mr. Watsa served as Vice President of GW Asset Management from 1983 to 1984 and Vice President of Confederation Life Investment Counsel from 1974 to 1983. He held various positions with Confederation Life Insurance Company. He served as the Chairman of Odyssey Re Holdings Corp. and served as its Director since March 2001. Mr. Watsa served as the Chairman of Crum & Forster Holdings Corp. since March 7, 2002. He has been a Director of Cunningham Lindsey Group Inc. since 1987. He has been a Director of Fairfax Financial Holdings Ltd. since 1985. He has been a Director at SickKids Foundation since January 1998. He has been Lead Independent Director and Independent Director of BlackBerry Limited since November 13, 2013 and also served as its Independent Director from January 2012 to August 13, 2013. He served as a Non-Executive Director of The Governor and Company of the Bank of Ireland from June 20, 2012 to July 23, 2013. He served as a Director of Markel Corporation. He served as a Director of ICICI Bank Limited from January 29, 2004 to June 27, 2011. He served as a Director of ICICI Prudential Life Insurance Company Limited. He served as a Director of Zenith National Insurance Corp. Mr. Watsa is on the Board of Horatio Alger Association U.S. and President of Horatio Alger Association of Canada. He was Chancellor of the University of Waterloo. He was recognized as Chief Executive Officer of the Year by Report on Business Magazine in December 2008. He is a recipient of the Order of Canada. He is also a Chartered Financial Analyst. Mr. Watsa holds a Bachelor of Technology in Chemical Engineering from the Indian Institute of Technology in Madras, India and an MBA from the University of Western Ontario. He holds an Honorary Doctorate of Laws from the University of Western Ontario, an Honorary Doctorate of Sacred Letters from Wycliff College of the University of Toronto and an Honorary Doctorate of Divinity from Tyndale College.

CEO Compensation
  • V.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • V.'s remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

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

7.2
Average Tenure
62.5
Average Age
  • The average tenure for the Fairfax Financial Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

V. Watsa

TITLE
Founder
COMPENSATION
$1M
AGE
69
TENURE
34.8 yrs

Paul Rivett

TITLE
President
COMPENSATION
$4M
AGE
51
TENURE
6.3 yrs

Peter Clarke

TITLE
VP & COO
COMPENSATION
$1M
AGE
47
TENURE
0.7 yrs

Jake Allen

TITLE
Chief Financial Officer
AGE
49
TENURE
0.2 yrs

Vinodh Loganadhan

TITLE
Vice President of Administrative Services

Derek Bulas

TITLE
Associate Vice President of Legal

John Varnell

TITLE
Vice President of Corporate Development
COMPENSATION
$1M
AGE
62
TENURE
7.2 yrs

Eric Salsberg

TITLE
VP of Corporate Affairs & Corporate Secretary
COMPENSATION
$943K
AGE
74
TENURE
7.8 yrs

Ronald Schokking

TITLE
VP & Treasurer
COMPENSATION
$878K
AGE
65
TENURE
13.7 yrs

Andy Barnard

TITLE
President of Fairfax Insurance Group
AGE
63
Board of Directors Tenure

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

7.5
Average Tenure
73
Average Age
  • The tenure for the Fairfax Financial Holdings board of directors is about average.
Board of Directors

V. Watsa

TITLE
Founder
COMPENSATION
$1M
AGE
69
TENURE
34.8 yrs

Tony Griffiths

TITLE
Lead Director
COMPENSATION
$168K
AGE
88

Bill McFarland

TITLE
Director
TENURE
0.3 yrs

Brandon Sweitzer

TITLE
Director
COMPENSATION
$169K
AGE
77
TENURE
15.8 yrs

Bob Gunn

TITLE
Director
COMPENSATION
$186K
AGE
73
TENURE
12.5 yrs

Tim Price

TITLE
Director
COMPENSATION
$91K
AGE
76
TENURE
9.5 yrs

John Ralph Palmer

TITLE
Director
COMPENSATION
$90K
AGE
75
TENURE
7.5 yrs

Benjamin Watsa

TITLE
Director
COMPENSATION
$85K
AGE
40
TENURE
4.5 yrs

Karen Jurjevich

TITLE
Director
COMPENSATION
$85K
AGE
63
TENURE
2.5 yrs

Lauren Templeton

TITLE
Director
COMPENSATION
$91K
AGE
42
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
X
Management checks
We assess Fairfax Financial 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 Financial 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.

FFH.PRM News

Simply Wall St News

FFH.PRM Company Info

Description

Fairfax Financial Holdings Limited, through its subsidiaries, provides property and casualty insurance and reinsurance, and investment management services in the United States, Canada, Asia, and internationally. It insures against losses to property from fire, explosion, earthquake, windstorm, flood, boiler explosion, machinery breakdown, and construction defects, as well as underwrites automobile, commercial and personal property, and crop insurance. The company also offers workers' compensation, employer’s liability, accident and health, medical malpractice, professional liability, and umbrella coverage insurance products; marine, aerospace, surety risk, and other miscellaneous risks and liabilities insurance products; and reinsurance products, which includes property, casualty, and liability exposures. In addition, it owns, operates, and franchises restaurants; manufactures food products; retails home improvement goods, toys and baby products, golf equipment, consumables, athletic apparel and accessories, and tableware and gifts; invests in retail and other businesses; owns and operates holiday resorts; invests in real estate sector; operates container freight station; and develops, produces, markets, and distributes television programs. Further, the company provides agricultural commodities storage, catering, pet medical insurance and database, and integrated travel and travel-related financial services, as well as infrastructure services to industries and government. It operates approximately 82 toys and baby products stores in Canada. The company was formerly known as Markel Financial Holdings Limited and changed its name to Fairfax Financial Holdings Limited in 1987. Fairfax Financial Holdings Limited was incorporated in 1951 and is headquartered in Toronto, Canada.

Details
Name: Fairfax Financial Holdings Limited
FFH.PRM
Exchange: TSX
Founded: 1951
CA$15,477,907,416
27,615,450
Website: http://www.fairfax.ca
Address: Fairfax Financial Holdings Limited
95 Wellington Street West,
Suite 800,
Toronto,
Ontario, M5J 2N7,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX FFH Subordinate Voting Shares The Toronto Stock Exchange CA CAD 06. Jan 1975
OTCPK FRFH.F Subordinate Voting Shares Pink Sheets LLC US USD 06. Jan 1975
DB FFX Subordinate Voting Shares Deutsche Boerse AG DE EUR 06. Jan 1975
BMV FFH N Subordinate Voting Shares Bolsa Mexicana de Valores MX MXN 06. Jan 1975
TSX FFH.PRC PFD SHS C The Toronto Stock Exchange CA CAD 05. Oct 2009
TSX FFH.PRF PFD SHS SER F The Toronto Stock Exchange CA CAD 01. Apr 2015
TSX FFH.PRE PFD SHS SER E The Toronto Stock Exchange CA CAD 02. Feb 2010
TSX FFH.PRG PFD SHS SER G The Toronto Stock Exchange CA CAD 27. Jul 2010
TSX FFH.PRH PFD SHS SER H The Toronto Stock Exchange CA CAD 01. Oct 2015
TSX FFH.PRJ PFD SHS SER J The Toronto Stock Exchange CA CAD 04. Jan 2016
TSX FFH.PRI CV PFD SHS SER I The Toronto Stock Exchange CA CAD 04. Oct 2010
TSX FFH.PRD PFD SHS SER D The Toronto Stock Exchange CA CAD 06. Jan 2015
TSX FFH.PRK CUM 5Y RT PFD K The Toronto Stock Exchange CA CAD 21. Mar 2012
TSX FFH.PRM PFD SHS 5 YR RT The Toronto Stock Exchange CA CAD 04. Mar 2015
OTCPK FXFL.F PFD SHS C Pink Sheets LLC US USD 05. Oct 2009
OTCPK FAXX.F PFD SHS SER H Pink Sheets LLC US USD 01. Oct 2015
OTCPK FRFG.F PFD SHS SER E Pink Sheets LLC US USD 02. Feb 2010
OTCPK FRFF.F CUM 5Y RT PFD K Pink Sheets LLC US USD 21. Mar 2012
OTCPK FRFZ.F PFD SHS SER D Pink Sheets LLC US USD 06. Jan 2015
OTCPK FRFX.F CV PFD SHS SER I Pink Sheets LLC US USD 04. Oct 2010
Number of employees
Current staff
Staff numbers
39,043
Fairfax Financial Holdings employees.
Industry
Multi-line Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/14 03:14
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/09
Last earnings filing: 2019/08/01
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


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.