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Fairfax Financial Holdings
(TSX:FFH)
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Rating:72Outperform
Price Target:
C$2,606.00
â–²(14.30% Upside)
Action:Upgraded
Date:08/01/26
The score is driven primarily by strong financial performance (healthy margins, strong ROE, and reasonable leverage), supported by attractive valuation (low P/E). Earnings-call takeaways are constructive on underwriting and expected Q2 monetizations, but tempered by investment mark-to-market volatility and slightly higher leverage. Technical signals are only mildly positive given limited momentum indicator data.
Positive Factors
Improved Underwriting
A sub-100% combined ratio indicates profitable core underwriting, reducing reliance on investment gains to generate returns. The sharp year-over-year improvement suggests stronger risk selection and pricing discipline, supporting more durable earnings quality if management sustains this performance.
Negative Factors
Cash-Flow Volatility
Volatile operating and free cash flow makes reported earnings less consistently convertible into internally generated liquidity. The weaker recent conversion and history of negative periods can constrain capital allocation flexibility and make results more sensitive to claims timing, investment movements and working-capital changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Underwriting
A sub-100% combined ratio indicates profitable core underwriting, reducing reliance on investment gains to generate returns. The sharp year-over-year improvement suggests stronger risk selection and pricing discipline, supporting more durable earnings quality if management sustains this performance.
Read all positive factors
Fairfax Financial Holdings (FFH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$55.17B
Dividend Yield0.85%
Average Volume (3M)49.21K
Price to Earnings (P/E)8.3
Beta (1Y)0.44
Revenue Growth-1.15%
EPS Growth1.30%
CountryCA
Employees62,500
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)212.17
Shares Outstanding20,830,778
10 Day Avg. Volume56,688
30 Day Avg. Volume49,206
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)1.54
Price to Sales (P/S)1.34
P/FCF Ratio17.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$2,990.80Price Target Upside31.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)175.13
Revenue Forecast (FY)C$31.95B
Fairfax Financial Holdings Business Overview & Revenue Model
Company Description
Fairfax Financial Holdings Limited operates as a diversified holding company, primarily engaged in property and casualty insurance and reinsurance, in addition to providing investment management services. Its global reach spans the United States, ...
How the Company Makes Money
FFH makes money primarily through a combination of insurance underwriting profits, investment income and gains on invested assets, and earnings from non-insurance subsidiaries.
1) Insurance and reinsurance underwriting: FFH’s insurance companies ...
Fairfax Financial Holdings Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive financial and operational picture: strong operating income, solid underwriting results, meaningful realized and unrealized investment gains, book value per share growth, sizable and well-positioned investment portfolio, successful corporate transactions and active capital returns. Offsetting items include weaker quarterly profits of associates (driven by mark-to-market/write-downs), unrealized bond losses from rising rates, softening pricing in parts of the insurance market (notably property in North America), and modestly higher leverage. On balance, the company emphasized diversification, conservative reserving, high-quality fixed income, and long-term partnerships, with positives materially outweighing the lowlights.Positive Updates
Strong Operating and Underwriting Income
Operating income from insurance & reinsurance (adjusted, undiscounted, before risk margin) of $1.1 billion in Q2 2026; underwriting income $459 million, up from $427 million YoY; combined ratio improved marginally to 93.1% (from 93.3% a year ago) and IFRS 17 combined ratio improved to 81.9% (from 84.1).
Negative Updates
Decline in Profits of Associates
Share of profits of associates fell to $43 million in Q2 2026 from $131 million a year earlier (down $88M YoY), driven by a $92 million write-down of Helios Fairfax Partners and mark-to-market losses at Waterous Energy Fund III.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Operating and Underwriting Income
Operating income from insurance & reinsurance (adjusted, undiscounted, before risk margin) of $1.1 billion in Q2 2026; underwriting income $459 million, up from $427 million YoY; combined ratio improved marginally to 93.1% (from 93.3% a year ago) and IFRS 17 combined ratio improved to 81.9% (from 84.1).
Read all positive updates
Company Guidance
Management gave limited formal guidance but flagged a few concrete targets and timing expectations: they expect investment gains to perform well over the long term but to fluctuate (Q2 consolidated investment return 2%, net investment gains $769M; total investment portfolio $77.3B), target a 15% return on the ~$25B equity/equity‑like portfolio and are earning a ~5% yield with 2‑year duration on the $52.3B fixed‑income book. They reiterated discipline on underwriting and reserves (Q2 gross written premium $9.4B, annualized group premium >$34B, Q2 combined ratio 93.1% / IFRS 17 combined ratio 81.9%, underwriting income $459M, operating income from insurance/reinsurance $1.1B) and said prior informal guidance of about $1B of income from associates and consolidated investments is a useful reference though associate income can swing (share of profit $43M Q2, $414M YTD). Key transaction timing: Poseidon partial sale realized gain $838M closed, Kennedy‑Wilson privatization closed in June, Andrew Peller expected to close in Q3 (~$233M), Eurobank‑related deals expected Q3 (≈$930M / EUR 813M and ERBA ~€59M), IIFL stake to 51% expected H2 (~$417M), Sleep Country acquisition ~ $530M expected to close, while liquidity and balance‑sheet metrics include holding company cash $2.3B, an undrawn $2B revolver, excess fair value over carrying value $4.4B ($220/share pretax), book value per basic share $1,304.39 (up 4.8% H1 adjusted), and total debt to total capital (ex‑noninsurance) 28% (from 26.2%).Fairfax Financial Holdings Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.74B | 30.41B | 28.45B | 25.80B | 19.58B | 25.80B |
| Gross Profit | 15.57B | 6.59B | 5.57B | 5.23B | -104.30M | 12.27B |
| EBITDA | 7.79B | 8.05B | 7.04B | 7.31B | 6.03B | 5.84B |
| Net Income | 4.44B | 4.77B | 3.87B | 4.38B | 3.37B | 3.40B |
Balance Sheet | ||||||
| Total Assets | 108.91B | 107.59B | 96.78B | 91.99B | 92.13B | 86.65B |
| Cash, Cash Equivalents and Short-Term Investments | 6.19B | 11.68B | 7.28B | 7.96B | 11.70B | 25.34B |
| Total Debt | 14.27B | 14.83B | 13.06B | 10.80B | 9.32B | 7.75B |
| Total Liabilities | 77.97B | 76.77B | 68.43B | 64.28B | 71.79B | 65.33B |
| Stockholders Equity | 26.24B | 26.47B | 24.07B | 22.95B | 16.68B | 16.39B |
Cash Flow | ||||||
| Free Cash Flow | 930.89M | 2.40B | 3.59B | -553.50M | -4.84B | 6.29B |
| Operating Cash Flow | 1.63B | 2.99B | 3.99B | -39.40M | -4.42B | 6.64B |
| Investing Cash Flow | 1.32B | -702.28M | -1.32B | 92.00M | 384.80M | 1.84B |
| Financing Cash Flow | -2.70B | -1.69B | -1.56B | -1.07B | -1.29B | -1.19B |
Fairfax Financial Holdings Technical Analysis
Positive
2279.87
Price Trends
2291.53
Positive
2308.24
Positive
2313.09
Positive
Market Momentum
61.66
Negative
68.39
Neutral
68.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FFH, the sentiment is Positive. The current price of 2279.87 is below the 20-day moving average (MA) of 2344.26, below the 50-day MA of 2291.53, and below the 200-day MA of 2313.09, indicating a bullish trend. The MACD of 61.66 indicates Negative momentum. The RSI at 68.39 is Neutral, neither overbought nor oversold. The STOCH value of 68.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FFH.
Fairfax Financial Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | C$8.65B | 18.29 | 11.45% | 1.17% | 35.39% | 14.86% | |
79 Outperform | C$19.00B | 18.56 | 13.70% | 1.92% | 13.06% | 8.42% | |
78 Outperform | C$46.12B | 14.51 | 15.73% | 2.20% | 3.25% | 38.09% | |
74 Outperform | C$62.93B | 19.09 | 13.89% | 3.32% | -0.59% | 5.22% | |
74 Outperform | C$82.93B | 19.00 | 15.48% | 2.83% | 4.29% | 21.91% | |
72 Outperform | C$55.17B | 8.30 | 16.94% | 0.85% | -1.15% | 1.30% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
TSE:FFH
Fairfax Financial Holdings
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Fairfax Financial Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Fairfax to Discuss Q3 2026 Results on November 4 Conference Call
Positive
Oct 27, 2026
Fairfax Financial Holdings Limited will release its third-quarter 2026 results after markets close on November 3, with the full disclosure available on the company’s website. Management will host a conference call on November 4 at 8:30 a.m. ...
Business Operations and StrategyM&A Transactions
Fairfax Named Strategic Buyer for Majority Stake in IDBI Bank, Plans Integrated Indian Financial Platform
Positive
Oct 14, 2026
Fairfax has been selected by the Government of India as the strategic buyer for a 60.72% stake in IDBI Bank, agreeing to pay INR 81 per share, or about US$5.6 billion, a roughly 23% premium to the bank’s June 30, 2026 book value. The move gi...
Dividends
Fairfax Declares Quarterly Dividend on Series K Preferred Shares
Positive
Sep 1, 2026
Fairfax Financial Holdings has declared a quarterly cash dividend of $0.315313 per share on its outstanding Series K preferred shares, to be paid on September 30, 2026, to shareholders of record as of September 14, 2026. The payment underscores Fa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.