Fairfax Financial Holdings Stock Buy Hold or Sell Recommendation

FFH-PH Stock  CAD 18.75  0.15  0.79%   
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Fairfax Financial Holdings is 'Hold'. Macroaxis provides Fairfax Financial buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding FFH-PH positions.
  
Check out Fairfax Financial Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Fairfax and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Fairfax Financial Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

Execute Fairfax Financial Buy or Sell Advice

The Fairfax recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Fairfax Financial Holdings. Macroaxis does not own or have any residual interests in Fairfax Financial Holdings or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Fairfax Financial's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Fairfax FinancialBuy Fairfax Financial
Hold

Market Performance

ModestDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Barely shadows the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Fairfax Financial Holdings has a Risk Adjusted Performance of 0.0399, Jensen Alpha of 0.0349, Total Risk Alpha of 0.0059, Sortino Ratio of 0.0167 and Treynor Ratio of 0.7698
Our trade advice tool can cross-verify current analyst consensus on Fairfax Financial and to analyze the company potential to grow in the current economic cycle. To make sure Fairfax Financial is not overpriced, please confirm all Fairfax Financial fundamentals, including its net income, book value per share, and the relationship between the revenue and total debt .

Fairfax Financial Trading Alerts and Improvement Suggestions

Fairfax Financial Holdings has accumulated about 14.91 B in cash with (39.4 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 554.45, which can makes it an attractive takeover target, given it will continue generating positive cash flow.

Fairfax Financial Returns Distribution Density

The distribution of Fairfax Financial's historical returns is an attempt to chart the uncertainty of Fairfax Financial's future price movements. The chart of the probability distribution of Fairfax Financial daily returns describes the distribution of returns around its average expected value. We use Fairfax Financial Holdings price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Fairfax Financial returns is essential to provide solid investment advice for Fairfax Financial.
Mean Return
0.05
Value At Risk
-0.97
Potential Upside
1.32
Standard Deviation
0.73
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Fairfax Financial historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Fairfax Financial Cash Flow Accounts

201920202021202220232024 (projected)
Investments(448.3M)110M633.8M(170.6M)92M96.6M
Change In Cash(673.6M)603.8M7.2B(5.6B)(1.0B)(963.8M)
Net Borrowings13.2M1.2B(1.1B)826.5M743.9M781.0M
Free Cash Flow1.0B(133.5M)6.3B(4.8B)(553.5M)(525.8M)
Depreciation486.4M550.4M502.3M410.8M896M515.6M
Other Non Cash Items(343M)(2.3B)45.7M(10.9B)(5.5B)(5.2B)
Dividends Paid323.8M319.7M316.6M295.1M294.9M246.9M
Capital Expenditures319.6M273.3M353.9M418.9M514.1M385.6M
Net Income2.0B218.4M3.4B1.1B4.4B4.6B
End Period Cash Flow3.9B4.5B11.7B6.1B5.1B6.9B
Change To Netincome(2.2B)(2.6B)(592.1M)(9.9B)(8.9B)(8.5B)

Fairfax Financial Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Fairfax Financial or Insurance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Fairfax Financial's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Fairfax stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.03
β
Beta against Dow Jones0.05
σ
Overall volatility
0.74
Ir
Information ratio 0.02

Fairfax Financial Volatility Alert

Fairfax Financial Holdings exhibits relatively low volatility with skewness of 1.36 and kurtosis of 3.56. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fairfax Financial's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Fairfax Financial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Fairfax Financial Fundamentals Vs Peers

Comparing Fairfax Financial's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Fairfax Financial's direct or indirect competition across all of the common fundamentals between Fairfax Financial and the related equities. This way, we can detect undervalued stocks with similar characteristics as Fairfax Financial or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Fairfax Financial's fundamental indicators could also be used in its relative valuation, which is a method of valuing Fairfax Financial by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Fairfax Financial to competition
FundamentalsFairfax FinancialPeer Average
Return On Equity0.17-0.31
Return On Asset0.0379-0.14
Profit Margin0.12 %(1.27) %
Operating Margin0.15 %(5.51) %
Current Valuation8.15 B16.62 B
Shares Outstanding27.37 M571.82 M
Number Of Shares Shorted3514.71 M
Price To Earning0.49 X28.72 X
Price To Sales0.72 X11.42 X
Revenue25.8 B9.43 B
Gross Profit9.52 B27.38 B
EBITDA5.7 B3.9 B
Net Income4.38 B570.98 M
Cash And Equivalents14.91 B2.7 B
Cash Per Share554.45 X5.01 X
Total Debt790.6 M5.32 B
Debt To Equity45.30 %48.70 %
Current Ratio6.01 X2.16 X
Book Value Per Share945.44 X1.93 K
Cash Flow From Operations(39.4 M)971.22 M
Short Ratio3.63 X4.00 X
Earnings Per Share128.45 X3.12 X
Beta0.84-0.15
Market Capitalization23.18 B19.03 B
Total Asset91.99 B29.47 B
Retained Earnings16.88 B9.33 B
Annual Yield0.10 %
Net Asset91.99 B
Last Dividend Paid15.0

Fairfax Financial Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Fairfax . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Fairfax Financial Buy or Sell Advice

When is the right time to buy or sell Fairfax Financial Holdings? Buying financial instruments such as Fairfax Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Other Operating Expenses4.9B5.3B6.1B5.0B
Total Revenue25.8B25.8B25.8B23.4B

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Other Information on Investing in Fairfax Stock

Fairfax Financial financial ratios help investors to determine whether Fairfax Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Fairfax with respect to the benefits of owning Fairfax Financial security.