Fairfax India Holdings Corporation Fundamental Analysis (TSX: FIH-U.TO)
Fairfax India Holdings Corporation Fundamental Analysis (TSX: FIH-U.TO)
Fairfax India Holdings Corporation (TSX: FIH-U.TO) shows moderate financial fundamentals with a PE ratio of 12.21, profit margin of -55.00%, and ROE of 7.14%. The company generates $-0.4B in annual revenue with strong year-over-year growth of 86.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 3.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FIH-U.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakFIH-U.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFIH-U.TO trades at attractive valuation levels.
Growth Score
ExcellentFIH-U.TO delivers strong and consistent growth momentum.
Financial Health Score
ModerateFIH-U.TO shows balanced financial health with some risks.
Profitability Score
WeakFIH-U.TO struggles to sustain strong margins.
Key Financial Metrics
Is FIH-U.TO Expensive or Cheap?
P/E Ratio
FIH-U.TO trades at 12.21 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FIH-U.TO's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Fairfax India Holdings Corporation at 0.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.50 times EBITDA. This is generally considered low.
How Well Does FIH-U.TO Make Money?
Net Profit Margin
For every $100 in sales, Fairfax India Holdings Corporation keeps $-55.00 as profit after all expenses.
Operating Margin
Core operations generate -93.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.14 in profit for every $100 of shareholder equity.
ROA
Fairfax India Holdings Corporation generates $5.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fairfax India Holdings Corporation generates limited operating cash flow of $-35.38M, signaling weaker underlying cash strength.
Free Cash Flow
Fairfax India Holdings Corporation produces free cash flow of $-35.38M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $-0.34 in free cash annually.
FCF Yield
FIH-U.TO converts -1.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
-5.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How FIH-U.TO Stacks Against Its Sector Peers
| Metric | FIH-U.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.21 | 21.27 | Better (Cheaper) |
| ROE | 7.14% | 664.00% | Weak |
| Net Margin | -55.00% | -735.00% (disorted) | Weak |
| Debt/Equity | 0.18 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 910.47 | Weak Liquidity |
| ROA | 5.32% | 4469143.00% | Weak |
FIH-U.TO 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 India Holdings Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
3587.01%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
1649.33%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-547.19%
Industry Style: Value, Dividend, Cyclical
Declining