Fairfax Financial Holdings Limited
Fairfax Financial Holdings Limited Fundamental Analysis
Fairfax Financial Holdings Limited (FAXRF) shows moderate financial fundamentals with a PE ratio of 0.05, profit margin of 13.06%, and ROE of 18.64%. The company generates $48.1B in annual revenue with weak year-over-year growth of -10.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FAXRF's fundamental strength across five key dimensions:
Efficiency Score
WeakFAXRF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFAXRF trades at attractive valuation levels.
Growth Score
WeakFAXRF faces weak or negative growth trends.
Financial Health Score
ModerateFAXRF shows balanced financial health with some risks.
Profitability Score
ModerateFAXRF maintains healthy but balanced margins.
Key Financial Metrics
Is FAXRF Expensive or Cheap?
P/E Ratio
FAXRF trades at 0.05 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FAXRF's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Fairfax Financial Holdings Limited at 0.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.40 times EBITDA. This is generally considered low.
How Well Does FAXRF Make Money?
Net Profit Margin
For every $100 in sales, Fairfax Financial Holdings Limited keeps $13.06 as profit after all expenses.
Operating Margin
Core operations generate 18.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.64 in profit for every $100 of shareholder equity.
ROA
Fairfax Financial Holdings Limited generates $4.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fairfax Financial Holdings Limited produces operating cash flow of $5.22B, showing steady but balanced cash generation.
Free Cash Flow
Fairfax Financial Holdings Limited produces free cash flow of $4.62B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $211.89 in free cash annually.
FCF Yield
FAXRF converts 11.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.003
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.008
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.008
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How FAXRF Stacks Against Its Sector Peers
| Metric | FAXRF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.05 | 18.50 | Better (Cheaper) |
| ROE | 18.64% | 809.00% | Weak |
| Net Margin | 13.06% | 2211.00% | Weak |
| Debt/Equity | 0.51 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 692.04 | Weak Liquidity |
| ROA | 4.41% | -24328.00% (disorted) | Weak |
FAXRF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fairfax Financial Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
61.48%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
132.48%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
254.30%
Industry Style: Value, Dividend, Cyclical
High Growth