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

Key Points

• Consensus rating: Six analysts give Fairfax Financial a consensus of "Moderate Buy," split evenly with three buy ratings and three holds, amid recent mixed analyst moves (Scotiabank reiterated an outperform while BMO and Zacks downgraded).
• Quarterly beat and profitability: Fairfax reported EPS of $57.57 (beat by $2.12) and revenue of $7.71 billion (slightly above estimates), with a return on equity of 16.29% and a net margin of 15.10%.
• Valuation and balance sheet: The company has a market cap of $37.75 billion, a PE of 8.21, strong liquidity (current and quick ratios of 3.78) and modest leverage (debt/equity 0.45), with a 1-year share range of $1,397 to $1,949.

Shares of Fairfax Financial Holdings Ltd. (OTCMKTS:FRFHF - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the six ratings firms that are presently covering the firm, MarketBeat Ratings reports. Three analysts have rated the stock with a hold rating and three have given a buy rating to the company.

FRFHF has been the topic of several recent analyst reports. Scotiabank restated an "outperform" rating on shares of Fairfax Financial in a report on Friday, January 30th. BMO Capital Markets downgraded Fairfax Financial from an "outperform" rating to a "hold" rating in a report on Wednesday, January 21st. Finally, Zacks Research downgraded Fairfax Financial from a "strong-buy" rating to a "hold" rating in a report on Friday, January 30th.

Fairfax Financial Price Performance

OTCMKTS FRFHF opened at $1,755.42 on Tuesday. The stock's 50-day moving average price is $1,704.06 and its two-hundred day moving average price is $1,723.28. The company has a current ratio of 3.78, a quick ratio of 3.78 and a debt-to-equity ratio of 0.45. The company has a market cap of $37.75 billion, a PE ratio of 8.21 and a beta of 0.58. Fairfax Financial has a 1 year low of $1,397.00 and a 1 year high of $1,949.00.

Fairfax Financial (OTCMKTS:FRFHF - Get Free Report) last posted its quarterly earnings data on Thursday, February 19th. The financial services provider reported $57.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $55.45 by $2.12. The firm had revenue of $7.71 billion for 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%. On average, analysts predict that Fairfax Financial will post 166.85 EPS for the current year.

Fairfax Financial Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.