Fairfax Financial Financials
| FFH Stock | CAD 1,514 9.20 0.61% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Debt Equity Ratio | 0.59 | 0.4705 |
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| Current Ratio | 3.37 | 3.5508 |
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Fairfax | Select Account or Indicator |
Understanding current and past Fairfax Financial Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Fairfax Financial's financial statements are interrelated, with each one affecting the others. For example, an increase in Fairfax Financial's assets may result in an increase in income on the income statement.
The data published in Fairfax Financial's official financial statements usually reflect Fairfax Financial's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Fairfax Financial. For example, before you start analyzing numbers published by Fairfax accountants, it's critical to develop an understanding of what Fairfax Financial's liquidity, profitability, and earnings quality are in the context of the Insurance space in which it operates.
Please note, the presentation of Fairfax Financial's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Fairfax Financial's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Fairfax Financial's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Fairfax Financial Holdings. Please utilize our Beneish M Score to check the likelihood of Fairfax Financial's management manipulating its earnings.
Fairfax Financial Stock Summary
Fairfax Financial competes with Citadel Income, and S Split. 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. Fairfax Financial Holdings Limited was incorporated in 1951 and is headquartered in Toronto, Canada. FAIRFAX FINANCIAL operates under InsuranceProperty Casualty classification in Canada and is traded on Toronto Stock Exchange. It employs 15891 people.| Foreign Associate | USA |
Specialization | Financial Services, Insurance - Property & Casualty |
| Instrument | Canada Stock View All |
| Exchange | Toronto Exchange |
| ISIN | CA3039011026 |
| Business Address | 95 Wellington Street |
| Sector | Insurance |
| Industry | Financials |
| Benchmark | NYSE Composite |
| Website | www.fairfax.ca |
| Phone | 416 367 4941 |
| Currency | CAD - Canadian Dollar |
You should never invest in Fairfax Financial without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Fairfax Stock, because this is throwing your money away. Analyzing the key information contained in Fairfax Financial's financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.
Fairfax Financial Key Financial Ratios
Generally speaking, Fairfax Financial's financial ratios allow both analysts and investors to convert raw data from Fairfax Financial's financial statements into concise, actionable information that can be used to evaluate the performance of Fairfax Financial over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Fairfax Financial reports annually and quarterly.Fairfax Financial Key Balance Sheet Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Total Assets | 70.5B | 74.1B | 86.6B | 92.1B | 92.0B | 96.6B | |
| Net Debt | 4.4B | (7.5B) | (16.9B) | (2.4B) | 4.0B | 4.2B | |
| Retained Earnings | 7.4B | 7.1B | 10.0B | 10.5B | 16.9B | 17.7B | |
| Other Current Assets | 10.3B | 9.0B | 10.3B | 10.8B | 12.4B | 9.5B | |
| Total Liab | 52.6B | 56.5B | 65.3B | 71.8B | 64.3B | 67.5B | |
| Total Current Assets | 26.7B | 32.7B | 42.9B | 36.1B | 41.5B | 43.5B | |
| Intangible Assets | 3.2B | 3.1B | 2.8B | 2.8B | 3.3B | 3.4B | |
| Other Assets | 1.0B | 6.4B | (3.3B) | 5.4B | 4.8B | 4.6B | |
| Net Receivables | 16.1B | 16.3B | 19.0B | 21.0B | 926.1M | 879.8M | |
| Good Will | 3.0B | 3.1B | 3.1B | 2.9B | 3.1B | 1.7B | |
| Short Term Debt | 853.4M | 1.7B | 647.6M | 693.4M | 797.4M | 837.3M | |
| Common Stock | 6.8B | 12.5B | 15.0B | 15.3B | 17.6B | 18.5B | |
| Accounts Payable | 3.4B | 8.0B | 9.5B | 10.3B | 2.2B | 3.3B | |
| Cash | 4.3B | 16.3B | 25.3B | 11.7B | 5.8B | 7.9B | |
| Other Current Liab | (4.2B) | (9.6B) | (4.4B) | (11.0B) | (9.9B) | (9.4B) | |
| Other Liab | 22.9B | 24.5B | 30.3B | 32.7B | 37.6B | 23.7B | |
| Net Tangible Assets | 6.8B | 6.3B | 9.1B | 9.7B | 11.1B | 7.4B | |
| Long Term Debt | 7.2B | 8.8B | 7.8B | 8.6B | 8.9B | 6.8B | |
| Inventory | 694.5M | 645.6M | 547.3M | 668.2M | 768.4M | 426.7M | |
| Short Long Term Debt | 763.4M | 1.9B | 647.6M | 693.4M | 790.6M | 858.5M | |
| Long Term Debt Total | 8.7B | 10.3B | 7.8B | 9.7B | 11.2B | 8.5B | |
| Treasury Stock | (587.5M) | (661.1M) | (732.8M) | (808.1M) | (727.3M) | (763.7M) | |
| Cash And Equivalents | 3M | 0.0 | 554.3M | 40.6M | 36.5M | 34.7M | |
| Net Invested Capital | 20.3B | 21.3B | 22.8B | 24.0B | 31.3B | 24.7B |
Fairfax Financial Key Income Statement Accounts
An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what Fairfax Financial's earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Interest Expense | 472M | 475.9M | 513.9M | 452.8M | 510M | 535.5M | |
| Total Revenue | 21.2B | 19.8B | 246.7M | 25.8B | 25.8B | 27.1B | |
| Gross Profit | 21.2B | 19.8B | 246.7M | 25.8B | 29.7B | 31.2B | |
| Ebit | 2.7B | 901M | 4.6B | 1.3B | 1.5B | 910.8M | |
| Ebitda | 3.3B | 1.7B | 5.6B | 2.0B | 2.3B | 2.4B | |
| Net Income | 2.0B | 37.4M | 3.4B | 1.1B | 4.4B | 4.6B | |
| Income Tax Expense | 261.5M | 206.7M | 726M | 425.2M | 489.0M | 513.4M | |
| Income Before Tax | 2.2B | 244.1M | 4.4B | 1.7B | 5.9B | 6.2B | |
| Operating Income | 2.7B | 901M | 4.6B | 1.3B | 1.5B | 1.7B | |
| Minority Interest | 3.5B | 3.7B | (265.5M) | (139.6M) | (713.1M) | (677.4M) | |
| Tax Provision | 261.5M | 206.7M | 726M | 425.2M | 813.4M | 854.1M | |
| Interest Income | 667.2M | 769.2M | 640.8M | 1.8B | 1.9B | 2.0B | |
| Net Interest Income | (472M) | (475.9M) | (513.9M) | (452.8M) | (510M) | (535.5M) |
Fairfax Financial Key Cash Accounts
Cash flow analysis captures how much money flows into and out of Fairfax Financial. It measures of how well Fairfax is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money Fairfax Financial brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money Fairfax had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what Fairfax Financial has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (673.6M) | 603.8M | 7.2B | (5.6B) | (1.0B) | (963.8M) | |
| Free Cash Flow | 1.0B | (133.5M) | 6.3B | (4.8B) | (553.5M) | (525.8M) | |
| Depreciation | 611.5M | 752.1M | 930.4M | 683.6M | 896M | 940.8M | |
| Other Non Cash Items | (2.3B) | (2.7B) | (1.4B) | (10.2B) | (5.5B) | (5.2B) | |
| Capital Expenditures | 319.6M | 273.3M | 353.9M | 418.9M | 514.1M | 539.8M | |
| Net Income | 2.0B | 37.4M | 3.7B | 1.3B | 4.4B | 4.6B | |
| End Period Cash Flow | 3.9B | 4.5B | 11.7B | 6.1B | 5.1B | 3.7B | |
| Dividends Paid | 323.8M | 319.7M | 316.6M | 295.1M | 294.9M | 206.0M | |
| Investments | (1.2B) | (46.8M) | 633.8M | 384.8M | 92M | 96.6M | |
| Net Borrowings | 13.2M | 1.2B | (1.1B) | 826.5M | 743.9M | 781.0M | |
| Change To Netincome | (2.2B) | (2.6B) | (592.1M) | (9.9B) | (8.9B) | (8.5B) |
Fairfax Financial Ratios Relationships
Comparative valuation techniques use various fundamental indicators to help in determining Fairfax Financial's current stock value. Our valuation model uses many indicators to compare Fairfax Financial value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Fairfax Financial competition to find correlations between indicators driving Fairfax Financial's intrinsic value. More Info.Fairfax Financial Holdings is one of the top stocks in return on equity category among related companies. It is one of the top stocks in return on asset category among related companies reporting about 0.22 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Fairfax Financial Holdings is roughly 4.63 . At this time, Fairfax Financial's Return On Equity is very stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Fairfax Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Fairfax Financial's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Fairfax Financial's earnings, one of the primary drivers of an investment's value.Fairfax Financial Systematic Risk
Fairfax Financial's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Fairfax Financial volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
Incorrect Input. Please change your parameters or increase the time horizon required for running this function. The output start index for this execution was zero with a total number of output elements of zero. The Beta measures systematic risk based on how returns on Fairfax Financial correlated with the market. If Beta is less than 0 Fairfax Financial generally moves in the opposite direction as compared to the market. If Fairfax Financial Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Fairfax Financial is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Fairfax Financial is generally in the same direction as the market. If Beta > 1 Fairfax Financial moves generally in the same direction as, but more than the movement of the benchmark.
Fairfax Financial Holdings Total Assets Over Time
About Fairfax Financial Financials
What exactly are Fairfax Financial Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include Fairfax Financial's income statement, its balance sheet, and the statement of cash flows. Potential Fairfax Financial investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Fairfax Financial investors may use each financial statement separately, they are all related. The changes in Fairfax Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Fairfax Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.Steps to analyze Fairfax Financial Financials for Investing
There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Fairfax Financial is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Fairfax has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it. In summary, you can determine if Fairfax Financial's financials are consistent with your investment objective using the following steps:- Review Fairfax Financial's balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
- Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
- Study the cash flow inflows and outflows to understand Fairfax Financial's liquidity and solvency.
- Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
- Compare Fairfax Financial's financials to those of its peers to see how it stacks up and identify any potential red flags.
- Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Fairfax Financial's stock is overvalued or undervalued.
Today, most investors in Fairfax Financial Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Fairfax Financial's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Fairfax Financial growth as a starting point in their analysis.
Price Earnings To Growth Ratio |
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Fairfax Financial April 19, 2024 Opportunity Range
Along with financial statement analysis, the daily predictive indicators of Fairfax Financial help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Fairfax Financial Holdings. We use our internally-developed statistical techniques to arrive at the intrinsic value of Fairfax Financial Holdings based on widely used predictive technical indicators. In general, we focus on analyzing Fairfax Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Fairfax Financial's daily price indicators and compare them against related drivers.
| Downside Deviation | 2.63 | |||
| Information Ratio | 0.1171 | |||
| Maximum Drawdown | 14.28 | |||
| Value At Risk | (1.45) | |||
| Potential Upside | 2.74 |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Fairfax Financial Holdings. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. Note that the Fairfax Financial information on this page should be used as a complementary analysis to other Fairfax Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Complementary Tools for Fairfax Stock analysis
When running Fairfax Financial's price analysis, check to measure Fairfax Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Fairfax Financial is operating at the current time. Most of Fairfax Financial's value examination focuses on studying past and present price action to predict the probability of Fairfax Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fairfax Financial's price. Additionally, you may evaluate how the addition of Fairfax Financial to your portfolios can decrease your overall portfolio volatility.
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