Fairfax Financial Intrinsic Value Calculation – FAIRFAX FINANCIAL Reports Fourth Quarter Financial Results for 2022 Fiscal Year
February 25, 2023
Earnings Overview
FAIRFAX FINANCIAL ($TSX:FFH) announced its financial results for the fourth quarter of the 2022 fiscal year which ended on December 31, 2022. Total revenue for the period was USD 2.0 billion, a surge of 112.9% from the quarter of the previous year. Net income for the quarter increased by 20.1% from 2021, totaling USD 8.2 billion.
Share Price
At the opening bell, FAIRFAX FINANCIAL stock opened at CA$863.9, and by the close of the day had decreased 0.2%, closing at CA$868.8 compared to the previous day’s closing price of CA$870.9. Overall the report confirmed the company’s strong financial performance for the fourth quarter of 2022 and provided positive signs for the year ahead. With solid growth in both revenue and net income, combined with a strong ROI, FAIRFAX FINANCIAL appears well-positioned to build upon their success as 2021 progresses. 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, our mission is to provide investors with the most accurate financial analysis of publicly traded companies. Our team recently analyzed FAIRFAX FINANCIAL‘s financials and determined that its intrinsic value is around CA$564.6. This figure was derived through our proprietary Valuation Line and takes into consideration factors such as income, cash flow, and balance sheet metrics. Currently, the FAIRFAX FINANCIAL stock is trading at CA$868.8, which indicates the company is being overvalued by 53.9% in the markets. We believe this presents investors with a great opportunity to purchase FAIRFAX FINANCIAL shares at a price lower than its true value, thus potentially earning a greater return on their investment. 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
Investors looking to get a better sense of Fairfax Financial‘s financial performance should take note of their 2022 fourth quarter results. Total revenue for the period grew 112.9%, reaching USD 2.0 billion, while net income increased 20.1%, to USD 8.2 billion. These results demonstrate strong, year-over-year growth, indicating that Fairfax Financial remains a lucrative investment opportunity. Investors should monitor future trends to gain a more comprehensive understanding of the company’s financial performance and outlook.
