Fairfax Financial Holdings Ltd. (FFH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fairfax Financial Holdings Ltd.

Trisura Group Ltd.

Armada Data Corp.

Definity Financial Corp.

The Westaim Corp.

Till Capital Corp.

Why is Fairfax Financial Holdings Ltd. ?

Strong Long Term Fundamental Strength with a 15.73% CAGR growth in Net Sales

Negative results in Mar 26

INTEREST(HY) At CAD 584.46 MM has Grown at 13.55%
DEBT-EQUITY RATIO (HY) Highest at 30.98 %
NET SALES(Q) Lowest at CAD 13,472.78 MM

With ROE of 17.23%, it has a fair valuation with a 1.49 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -7.29%, its profits have risen by 11.2% ; the PEG ratio of the company is 0.5

Majority shareholders : FIIs

Underperformed the market in the last 1 year

Even though the market (S&P/TSX 60) has generated returns of 29.60% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -7.29% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fairfax Financial Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Insurance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Insurance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Fairfax Financial Holdings Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Fairfax Financial Holdings Ltd.

-7.29%

18.08

22.75%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.73%

EBIT Growth (5y)

-100.00%

EBIT to Interest (avg)

1.03

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

27.10%

Dividend Payout Ratio

6.48%

Pledged Shares

Institutional Holding

0.97%

ROCE (avg)

2.70%

ROE (avg)

17.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.49

EV to EBIT

EV to EBITDA

68.54

EV to Capital Employed

1.39

EV to Sales

1.03

PEG Ratio

0.53

Dividend Yield

ROCE (Latest)

ROE (Latest)

17.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

-13What is not working for the Company

INTEREST(HY)

At CAD 584.46 MM has Grown at 13.55%

DEBT-EQUITY RATIO (HY)

Highest at 30.98 %

NET SALES(Q)

Lowest at CAD 13,472.78 MM

OPERATING PROFIT(Q)

Lowest at CAD 1,209.57 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.98 %

PRE-TAX PROFIT(Q)

Lowest at CAD 919.32 MM

NET PROFIT(Q)

Lowest at CAD 954.3 MM

EPS(Q)

Lowest at CAD 42.67

Here's what is working for Fairfax Financial Holdings Ltd.

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Fairfax Financial Holdings Ltd.

Interest

At CAD 584.46 MM has Grown at 13.55%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Sales

Lowest at CAD 13,472.78 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD 1,209.57 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 8.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD 919.32 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Pre-Tax Profit

Fallen at -38.22%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 954.3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Net Profit

Fallen at -29.67%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 42.67

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Highest at 30.98 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio