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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fairfax Financial Holdings Ltd.

Armada Data Corp.

Definity Financial Corp.

Trisura Group Ltd.

The Westaim Corp.

Till Capital Corp.

Why is Fairfax Financial Holdings Ltd. ?

Strong Long Term Fundamental Strength with a 19.73% CAGR growth in Net Sales

With ROE of 18.09%, it has a very attractive valuation with a 1.55 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 42.84%, its profits have risen by 14.8% ; the PEG ratio of the company is 0.6

Majority shareholders : FIIs

Consistent Returns over the last 3 years

Along with generating 42.84% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

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.

18.26%

20.26

22.09%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.73%

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

9.09%

Pledged Shares

Institutional Holding

0.92%

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

1.58

EV to EBIT

EV to EBITDA

46.63

EV to Capital Employed

1.53

EV to Sales

0.94

PEG Ratio

0.60

Dividend Yield

ROCE (Latest)

ROE (Latest)

18.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 6,513.29 MM

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

OPERATING PROFIT(Q)

Highest at CAD 2,810.29 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.61 %

PRE-TAX PROFIT(Q)

Highest at CAD 2,523.27 MM

NET PROFIT(Q)

Highest at CAD 1,988.25 MM

EPS(Q)

Highest at CAD 85.26

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 80.86

INTEREST(Q)

Highest at CAD 287.02 MM

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

Operating Cash Flow

Highest at CAD 6,513.29 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Operating Profit

Highest at CAD 2,810.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 17.61 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 2,523.27 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Pre-Tax Profit

At CAD 2,523.27 MM has Grown at 55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 1,988.25 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Net Profit

At CAD 1,988.25 MM has Grown at 58.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 85.26

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

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 Coverage Ratio

Lowest at 80.86

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CAD 287.02 MM

in the last five periods and Increased by 5.06% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)