Fairfax Financial Holdings Ltd. (OTCMKTS:FRFHF) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst consensus: Six brokerages give Fairfax an average rating of "Moderate Buy", split evenly between three buys and three holds, with recent moves including downgrades from Zacks and BMO while Scotiabank maintained an outperform view.
• Quarterly results: Fairfax beat estimates with EPS of $57.57 (vs. $55.45 expected) and revenue of $7.71 billion, reporting a 16.29% return on equity and a 15.10% net margin; analysts forecast 166.85 EPS for the year.
• Market/valuation snapshot: The stock opened at $1,729.36, has a market cap of $37.84 billion and a P/E of 8.08, with a 52-week range of $1,292.53–$1,949.00.

Fairfax Financial Holdings Ltd. (OTCMKTS:FRFHF - Get Free Report) has been given an average recommendation of "Moderate Buy" by the six brokerages that are presently covering the firm, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company.

Several equities research analysts recently commented on the company. Zacks Research downgraded Fairfax Financial from a "strong-buy" rating to a "hold" rating in a report on Friday, January 30th. Scotiabank reiterated an "outperform" rating on shares of Fairfax Financial in a research note on Friday, January 30th. Finally, BMO Capital Markets lowered shares of Fairfax Financial from an "outperform" rating to a "hold" rating in a research note on Wednesday, January 21st.

Fairfax Financial Stock Performance

OTCMKTS:FRFHF opened at $1,729.36 on Friday. The company has a market cap of $37.84 billion, a P/E ratio of 8.08 and a beta of 0.59. The company has a quick ratio of 3.78, a current ratio of 3.78 and a debt-to-equity ratio of 0.45. Fairfax Financial has a fifty-two week low of $1,292.53 and a fifty-two week high of $1,949.00. The firm's 50 day moving average is $1,714.87 and its two-hundred day moving average is $1,727.43.

Fairfax Financial (OTCMKTS:FRFHF - Get Free Report) last announced its quarterly earnings results on Thursday, February 19th. The financial services provider reported $57.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $55.45 by $2.12. The firm had revenue of $7.71 billion during the quarter, compared to the consensus estimate of $7.62 billion. Fairfax Financial had a return on equity of 16.29% and a net margin of 15.10%. Analysts expect that Fairfax Financial will post 166.85 EPS for the current year.

About Fairfax Financial

Fairfax Financial OTCMKTS: FRFHF is a Toronto-based financial holding company primarily engaged in property and casualty insurance, reinsurance and investment management. The company underwrites a broad range of commercial and personal insurance products, operates specialty and run-off reinsurance businesses, and manages a diversified investment portfolio largely funded by insurance float. Fairfax conducts its insurance operations through a network of subsidiaries and affiliated companies that provide local underwriting and claims services across multiple markets.

On the insurance side, Fairfax writes a mix of short-tail and long-tail coverages across specialty lines, commercial casualty, property and other niche markets, while its reinsurance activities include treaty and facultative solutions for cedants and intermediaries.

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