Fairfax Financial Stock Fair Value – FAIRFAX FINANCIAL Reports First Quarter Earnings Results for FY2023.
May 24, 2023
Earnings Overview
FAIRFAX FINANCIAL ($TSX:FFH) released the earnings results for the first quarter of FY2023, which ended on March 31 2023. Total revenue for the period was USD 7433.4 million, a 28.2% increase from the same period last year. Net income for the period was USD 1250.0 million, drastically higher than the 125.5 million reported for the same period in the previous year.
Market Price
This is impressive considering the volatility of the markets and the overall economic uncertainty. This was mainly due to the company’s investments in various industries including insurance, reinsurance and banking. The company managed to increase its total assets and pay out large dividends to shareholders, showing its commitment to maximizing shareholder value in the long run. 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 |
| 27.64k | 1.76k | 3.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Fairfax Financial. More…
| Operations | Investing | Financing |
| -4.42k | 384.8 | -1.29k |
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 |
| 81.17k | 57.14k | 860.98 |
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 |
| 13.5% | – | 11.0% |
| FCF Margin | ROE | ROA |
| -17.5% | 10.4% | 2.3% |
Analysis – Fairfax Financial Stock Fair Value
At GoodWhale, we have conducted an analysis of FAIRFAX FINANCIAL‘s financials. Based on our proprietary Valuation Line, we have calculated that the fair value of FAIRFAX FINANCIAL share to be around CA$788.1. However, currently, FAIRFAX FINANCIAL stock is traded at CA$937.5, which makes it a fair price overvalued by 19.0%. 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 invest in FAIRFAX FINANCIAL have much to be pleased with. The company reported total revenue of USD 7433.4 million for the first quarter of FY2023, an impressive 28.2% increase from the same period the previous year. Additionally, net income for the period was USD 1250 million, a significant improvement from the previous year’s figure of 125.5 million. With these impressive figures, FAIRFAX FINANCIAL looks like a promising investment opportunity for investors.
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