Fairfax Financial Return On Equity vs. Shares Outstanding

FFH Stock  CAD 1,970  10.78  0.55%   
Taking into consideration Fairfax Financial's profitability measurements, Fairfax Financial Holdings is performing exceptionally good at the present time. It has a great chance to showcase excellent profitability results in December. Profitability indicators assess Fairfax Financial's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.19092395
Current Value
0.2
Quarterly Volatility
0.08991776
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Fairfax Financial's Price To Sales Ratio is very stable compared to the past year. As of the 23rd of November 2024, Price Sales Ratio is likely to grow to 0.99, while Days Sales Outstanding is likely to drop 34.37. At this time, Fairfax Financial's Interest Income is very stable compared to the past year. As of the 23rd of November 2024, Net Income Per Share is likely to grow to 181.90, though Accumulated Other Comprehensive Income is likely to grow to (914.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.070.9334
Fairly Up
Pretty Stable
For Fairfax Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fairfax Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fairfax Financial Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fairfax Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fairfax Financial Holdings over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Fairfax Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fairfax Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fairfax Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Fairfax Financial Shares Outstanding vs. Return On Equity Fundamental Analysis

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.
Fairfax Financial Holdings is one of the top stocks in return on equity category among its peers. It is rated below average in shares outstanding category among its peers creating about  125,098,940  of Shares Outstanding per Return On Equity. 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.

Fairfax Shares Outstanding vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Fairfax Financial

Return On Equity

 = 

Net Income

Total Equity

 = 
0.17
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.

Fairfax Financial

Shares Outstanding

 = 

Public Shares

-

Repurchased

 = 
21.24 M
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.

Fairfax Shares Outstanding Comparison

Fairfax Financial is currently under evaluation in shares outstanding category among its peers.

Fairfax Financial Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Fairfax Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fairfax Financial will eventually generate negative long term returns. The profitability progress is the general direction of Fairfax Financial's change in net profit over the period of time. It can combine multiple indicators of Fairfax Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-962.2 M-914.1 M
Operating Income5.2 B5.5 B
Income Before Tax5.9 B6.2 B
Total Other Income Expense Net713.1 M1.4 B
Net Income5.1 B5.3 B
Income Tax Expense813.4 M854.1 M
Net Income From Continuing Ops5.1 B5.3 B
Net Income Applicable To Common Shares1.3 BB
Interest Income1.9 BB
Net Interest Income-510 M-535.5 M
Change To Netincome-8.9 B-8.5 B
Net Income Per Share 173.24  181.90 
Income Quality(0.01)(0.01)
Net Income Per E B T 0.74  0.78 

Fairfax Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Fairfax Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Fairfax Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Fairfax Financial's important profitability drivers and their relationship over time.

Use Fairfax Financial in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fairfax Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fairfax Financial will appreciate offsetting losses from the drop in the long position's value.

Fairfax Financial Pair Trading

Fairfax Financial Holdings Pair Trading Analysis

The ability to find closely correlated positions to Fairfax Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fairfax Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fairfax Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Fairfax Financial Holdings to buy it.
The correlation of Fairfax Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fairfax Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fairfax Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Fairfax Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Fairfax Financial position

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.

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Machinery
Machinery Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Machinery theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Machinery Theme or any other thematic opportunities.
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Other Information on Investing in Fairfax Stock

To fully project Fairfax Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Fairfax Financial at a specified time, usually calculated after every quarter, six months, or one year. 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 can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Fairfax Financial investors may work on 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.