Fairfax Financial Holdings Limited

FFH.TO

Insurance - Property & Casualty · Financial Services

Price

C$2241.47

+4.14 (+0.19%)

Market Cap

C$45.88B

Exchange

Toronto Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Strong

Growth

Mixed

Cash Flow

Weak

Stability

Strong

Valuation

Good

Dividends

Good

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Share count falling — buybacks

−19.8% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 27.8M (2021) → 22.3M (2025)

Winston Score History

The full picture

Fairfax Financial Holdings is a Canadian company that sells insurance and reinsurance. Insurance means customers pay regular fees so the company will cover big unexpected costs — like damage from fires, floods, or accidents. Fairfax sells these policies to businesses and individuals through brands like Northbridge, Odyssey Group, and Brit Insurance, operating across North America, Europe, Asia, and beyond.

Fairfax makes money in two ways: collecting insurance premiums and investing the cash it holds before paying out claims. This investing side is heavily influenced by CEO Prem Watsa, often compared to Warren Buffett for his value-investing style, which is a key part of the company's identity. Fairfax operates globally and has grown significantly through acquisitions over the decades. The main growth driver is expanding its insurance operations in emerging markets like India, but the biggest risk is large catastrophe events — hurricanes, earthquakes, or wildfires — which can trigger massive claim payouts and hurt profitability quickly.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+42.3% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-0.1% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

13.7%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$76.2B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Fairfax Financial Holdings Limited grew revenue 42% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

100.0%

Premium pricing power — 100.0% gross margin

Profit after running costs

Operating Margin

16.7%

Healthy — 16.7% operating margin

Return on the money invested

ROCE

15.5%

Strong — 15.5% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+4.8%

Slow sales growth (+4.8% YoY)

Profit growth

EPS YoY

+1.0%

Flat earnings

Single-digit earnings growth — steady but not exciting.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

37%

Weak — only 37% of profit becomes cash

Spare cash per sale

FCF Margin

2.8%

Thin free cash flow (2.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.54

Conservative — low debt load (0.54)

Covers its interest

Interest Cover

7.39x

Adequate interest coverage (7.4x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

7.7x

Attractive valuation — P/E 7.7

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

-1.2

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend

Dividend Yield

0.92%

Small dividend — 0.92% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+47.8%

Dividend growing fast (47.8% YoY)

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