
TSE:FFH
This summary was created by AI, based on 22 opinions in the last 12 months.
Fairfax Financial (FFH-T) presents a mix of opinions among analysts, characterized by a stable yet turbulent market presence. While it boasts a solid reputation as a well-managed company with strong long-term growth potential, particularly in its insurance sector, many experts imply that the current market conditions are not optimal for buying. Reviews suggest a sideways trend in stock performance without any significant catalysts on the horizon, with some indicating that the best earnings cycle may be behind. Moreover, the stock tends to trade at a discount compared to peers, hinting at potential undervaluation, but several analysts believe that it may not be a screaming buy at this moment. The long-term outlook remains positive, though considerable patience is required to fully appreciate the investment's value.
He entered this in the $400s and it's now around $1,000. They increased their insurance premiums by 16% in the past year, and they manage their float well (reinvesting those customer premiums into short-term bonds). So, they're not exposed to interest rate fluctuations.
(Analysts’ price target is $1253.75)FFH in the past focused on growing book value per share and paying minimal dividends.
The company compounded book value per share at around 15% on average, used to be considered as a “Canadian version” of BRK.B.
However, in the last ten years, performance has not been impressive, book value compounded around 8%, while most earnings are paid out as dividends.
We think FFH will still do okay going forward, but it is quite hard to repeat the track record of its past.
FFH also used to take large 'bets' on the market (both ways), and has seemed to have reduced this activity.
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P&C insurance is doing very well, though this year is tougher than most because of catastrophic losses. So they raise their prices. One of the lower combined ratios in the space. Benefits from higher interest rates. Outlook is for double-digit returns over the next several years.