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Fairfax Financial Holdings Limited (FFH) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Fairfax Financial Holdings Limited

FFHMarket cap $31BPrice $1556.6

Country🇨🇦Canada

SectorFinancials

IndustryInsurance

Runs insurance companies and invests their float in stocks, bonds, and businesses across the globe. CEO Prem Watsa is called the "Warren Buffett of Canada" for his contrarian investing style.

In Bastion Portfolios?

52W Return-6%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+12%8

Revenue Forecast

Rev CAGR (1y)+2%3

Rev CAGR (3y)+4%3

Rev CAGR (5y)+4%3

Earnings Forecast

EPS Growth Y+1-8%3

EPS Growth Y+2-6%3

EPS Growth Y+3-13%3

Quality

Margins

EBIT Margin19%7

Net Income Margin12%6

Free Cash Flow Margin-2%2

Debt

Net Debt/EBITDA1.16

Efficiency

ROE18%7

ROA5%6

Earnings Stability77

GEAR+STRONG75

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)810

P/E Ratio (Forward 3y)98

P/BV1.29

EV Multiples

EV/EBITDA Fwd010

EV/EBIT Fwd010

Yield

Free Cash Flow Yield0.0%10

Dividend Yield1.0%3

Momentum

Short term

1 month return-4%6

3 month return-8%4

YTD return-15%3

Mid term

Price vs 52wHigh83%6

1 year return-9%3

Long term

3 year return+97%7

5 year return+362%10

Risk Shield

Price Risk

Beta0.48

Volatility24%9

Free Cash Flow

Free Cash Flow Margin-2%2

Free Cash Flow Yield0.0%10

Quality

ROCE7%6

Earnings Stability77

Net Debt/EBITDA1.16

02Growth

Is it actually growing, and how fast?

FFHFairfax Financial Holdings

Revenue FY25$39.3B

GROWTH RATING↗

WEAK22 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+12%8

Revenue, next 1Y+2%3

Revenue, next 3Y, CAGR+4%3

Revenue, next 5Y, CAGR+4%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-8%3

EPS growth, FY27E-6%3

EPS growth, FY28E-13%3

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 12%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

WATCH

Revenue grew 12%/yr over the last 3 years; forecasts see it cooling to 4%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 78% of companies worldwide.

Revenue is set to grow 4%/yr over the next 3 years, behind most of the market.3/10

Over five years revenue is set to grow 4%/yr, behind 70% of companies worldwide.3/10

Earnings are set to fall even as revenue grows (EPS about -8%/yr vs revenue 4%/yr).

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that is slowing. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

FFHFairfax Financial Holdings

Total return Current277%

Price return Current222%

MOMENTUM RATING↗

AVERAGE55 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-4%6

3-month return-8%4

YTD return-15%3

MID & LONG-TERM▾SCORE

% of 52-week high83%6

1-year return-9%3

3-year return+97%7

5-year return+362%10

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +97% over three years and +362% over five, ahead of 80% of the market.

WATCH

It's down 9% over the past year, now 17% below its 52-week high. That is right in line with the market.

Returns sit at the market level over the past month (-4%) and over three months (-8%).

WEAKNESSES

The stock is underperforming so far this year (-15%).

BOTTOM LINE

Steady Compounder

Dependable multi-year returns with a calmer near-term tape. A reliable long-term trend rather than a short-term breakout. The one thing to watch: the stock is underperforming so far this year.

04Value

Are you paying a fair price for it?

Stop guessing on Fairfax Financial Holdings Limited. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

FFHFairfax Financial Holdings

Revenue FY25$39.3B

GROWTH RATING↗

WEAK22 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+12%8

Revenue, next 1Y+2%3

Revenue, next 3Y, CAGR+4%3

Revenue, next 5Y, CAGR+4%3

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-8%3

EPS growth, FY27E-6%3

EPS growth, FY28E-13%3

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 12%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

WATCH

Revenue grew 12%/yr over the last 3 years; forecasts see it cooling to 4%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 78% of companies worldwide.

Revenue is set to grow 4%/yr over the next 3 years, behind most of the market.3/10

Over five years revenue is set to grow 4%/yr, behind 70% of companies worldwide.3/10

Earnings are set to fall even as revenue grows (EPS about -8%/yr vs revenue 4%/yr).

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that is slowing. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

FFHFairfax Financial Holdings

Total return Current277%

Price return Current222%

MOMENTUM RATING↗

AVERAGE55 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-4%6

3-month return-8%4

YTD return-15%3

MID & LONG-TERM▾SCORE

% of 52-week high83%6

1-year return-9%3

3-year return+97%7

5-year return+362%10

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +97% over three years and +362% over five, ahead of 80% of the market.

WATCH

It's down 9% over the past year, now 17% below its 52-week high. That is right in line with the market.

Returns sit at the market level over the past month (-4%) and over three months (-8%).

WEAKNESSES

The stock is underperforming so far this year (-15%).

BOTTOM LINE

Steady Compounder

Dependable multi-year returns with a calmer near-term tape. A reliable long-term trend rather than a short-term breakout. The one thing to watch: the stock is underperforming so far this year.

04Value

Are you paying a fair price for it?

Stop guessing on Fairfax Financial Holdings Limited. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community