Fairfax Financial Intrinsic Value Calculation – FAIRFAX FINANCIAL Reports 112.9% Increase in Revenue for Q4 FY2022.
March 9, 2023
Earnings Overview
On February 16 2023, FAIRFAX FINANCIAL ($TSX:FFH) announced their fourth quarter FY2022 earnings results, which revealed a total revenue of USD 2.0 billion, representing a 112.9% increase from the same period in the previous year. Net income was reported to have risen 20.1% year over year, to USD 8.2 billion.
Stock Price
On Thursday, FAIRFAX FINANCIAL reported a 112.9% increase in revenue for Q4 FY2022, causing the stock to open at CA$863.9 and close at CA$868.8, down by 0.2% from the previous closing price of 870.9. This staggering increase in revenue is a testament to the financial success of the company, as well as its ability to consistently perform strongly on the stock market. The impressive figures reported by FAIRFAX FINANCIAL have been attributed to their strategies of diversifying their investments across various markets, as well as their commitment to providing quality services to their customers. The company has also invested heavily in research and development, allowing them to stay ahead of the curve when it comes to the latest technologies and trends. This has enabled them to remain competitive and profitable in the face of ever-changing financial markets.
Investors will be happy to see that FAIRFAX FINANCIAL is doing well despite the difficult circumstances caused by the global pandemic. The company’s strong performance in the fourth quarter of FY2022 demonstrates its resilience and ability to maintain a strong financial position even during difficult times. This is likely to be reassuring for shareholders, who will be able to continue relying on FAIRFAX FINANCIAL to provide reliable returns in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Fairfax Financial. More…
| Total Revenues | Net Income | Net Margin |
| 25.82k | 1.15k | 0.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Fairfax Financial. More…
| Operations | Investing | Financing |
| -3.74k | 1.84k | -1.19k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Fairfax Financial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 92.13k | 71.79k | 670.45 |
Key Ratios Snapshot
Some of the financial key ratios for Fairfax Financial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.8% | – | 8.4% |
| FCF Margin | ROE | ROA |
| -16.0% | 8.6% | 1.5% |
Analysis – Fairfax Financial Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of FAIRFAX FINANCIAL‘s financials. Our proprietary Valuation Line has calculated the intrinsic value of FAIRFAX FINANCIAL share to be around CA$567.6. However, the stock is currently trading at CA$868.8, which puts it at an overvaluation of 53.1%. This discrepancy provides an opportunity for potential investors to benefit from this discrepancy between the actual and intrinsic value. More…
Peers
The Company’s segments include Insurance, Reinsurance, Run-off and Other. The Insurance segment consists of property and casualty insurance companies that operate within the United States, Canada and Bermuda. The Reinsurance segment includes property and casualty reinsurance companies that operate within the United States, Canada and Bermuda. The Run-off segment includes the management of the Company’s runoff businesses. The Other segment includes the Company’s investment management and corporate operations.
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Summary
FAIRFAX FINANCIAL‘s fourth quarter of FY2022 earnings report showed an impressive increase in revenue of 112.9% year over year to a total of USD 2 billion. Net income also increased 20.1% from the same period a year before, to USD 8.2 billion. This financial success can be attributed to the company’s dedication towards expanding their operations and investments into new ventures.
With strong returns from their investments, FAIRFAX FINANCIAL’s future looks promising for investors. It is therefore recommended that investors consider FAIRFAX FINANCIAL as a sound investment opportunity.
