Fairfax Financial Holdings Stock Buy Hold or Sell Recommendation
| FFH Stock | CAD 1,970 10.78 0.55% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Fairfax Financial Holdings is 'Strong Buy'. The recommendation algorithm takes into account all of Fairfax Financial's available fundamental, technical, and predictive indicators you will find on this site.
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 board of governors.
Fairfax |
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
 |  |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Fairfax Financial Trading Alerts and Improvement Suggestions
| Fairfax Financial Holdings has accumulated about 40.6 M in cash with (39.4 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 386.73. | |
| Latest headline from news.google.com: Why Id Buy Fairfax Financial Stock Even at Todays Prices - The Motley Fool Canada |
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 | 0.34 | Value At Risk | -2.26 | Potential Upside | 2.04 | Standard Deviation | 1.65 |
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
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (673.6M) | 603.8M | 7.2B | (5.6B) | (998.2M) | (948.3M) | |
| 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) | (9.4B) | (9.0B) | |
| Capital Expenditures | 319.6M | 273.3M | 353.9M | 418.9M | 514.1M | 539.8M | |
| Net Income | 2.0B | 37.4M | 3.7B | 1.3B | 5.1B | 5.3B | |
| 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 | |
| Change To Inventory | 2.1B | 3.0B | 5.1B | 3.5B | 4.1B | 4.3B | |
| 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 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 | 0.32 | |
β | Beta against Dow Jones | 0.18 | |
σ | Overall volatility | 1.68 | |
Ir | Information ratio | 0.14 |
Fairfax Financial Volatility Alert
Fairfax Financial Holdings has relatively low volatility with skewness of 2.04 and kurtosis of 12.0. 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 |
| Fundamentals | Fairfax Financial | Peer Average |
| Return On Equity | 0.17 | -0.31 |
| Return On Asset | 0.0418 | -0.14 |
| Profit Margin | 0.12 % | (1.27) % |
| Operating Margin | 0.18 % | (5.51) % |
| Current Valuation | 49.02 B | 16.62 B |
| Shares Outstanding | 21.24 M | 571.82 M |
| Shares Owned By Insiders | 3.76 % | 10.09 % |
| Shares Owned By Institutions | 38.00 % | 39.21 % |
| Number Of Shares Shorted | 154.08 K | 4.71 M |
| Price To Earning | 7.75 X | 28.72 X |
| Price To Book | 1.40 X | 9.51 X |
| Price To Sales | 1.31 X | 11.42 X |
| Revenue | 25.8 B | 9.43 B |
| Gross Profit | 9.52 B | 27.38 B |
| EBITDA | 6.09 B | 3.9 B |
| Net Income | 5.09 B | 570.98 M |
| Cash And Equivalents | 40.6 M | 2.7 B |
| Cash Per Share | 386.73 X | 5.01 X |
| Total Debt | 10.8 B | 5.32 B |
| Debt To Equity | 0.39 % | 48.70 % |
| Current Ratio | 1.86 X | 2.16 X |
| Book Value Per Share | 1,033 X | 1.93 K |
| Cash Flow From Operations | (39.4 M) | 971.22 M |
| Short Ratio | 4.21 X | 4.00 X |
| Earnings Per Share | 228.05 X | 3.12 X |
| Price To Earnings To Growth | 0.28 X | 4.89 X |
| Target Price | 1485.34 | |
| Beta | 0.83 | -0.15 |
| Market Capitalization | 44.65 B | 19.03 B |
| Total Asset | 91.99 B | 29.47 B |
| Retained Earnings | 16.88 B | 9.33 B |
| Annual Yield | 0.01 % | |
| Five Year Return | 2.28 % |
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.
Use Investing Ideas to Build Portfolios
In addition to having Fairfax Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Baby Boomer Prospects Thematic Idea Now
Baby Boomer Prospects
Equities with large market capitalization that account for significant contribution to overall economic growth especially within dividend-paying instruments and stocks from healthcare and financial sectors. The Baby Boomer Prospects theme has 98 constituents at this time.
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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.