Fairfax India Holdings Corporation logo

Fairfax India Holdings Corporation

FIH-U.TO
47
Asset Management · Financial Services
Price
C$17.99
-0.11 (-0.61%)
Market Cap
C$1.87B
Exchange
Toronto Stock Exchange
Winston Score
47
Winston looking serious
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Winston Score between 40 and 70. The stock passes some quality checks but not all.

Fairfax India Holdings Corporation is a Canadian investment company that puts money into businesses based in India. It buys stakes in Indian companies across industries like airports, financial services, and manufacturing. The company is controlled by Fairfax Financial Holdings, the large Canadian insurer run by investor Prem Watsa, who is sometimes called "Canada's Warren Buffett."

Fairfax India makes money when the value of its investments goes up and when those businesses pay dividends. It is listed in Canada but almost all of its assets are in India, making it a way for investors outside India to get exposure to the Indian economy. The company's main edge is its access to deal flow through Fairfax's relationships and its long-term, patient investing style. The biggest growth driver is India's expanding economy, but the main risks are currency fluctuations between the Indian rupee and the Canadian dollar, and the concentration of its portfolio in a small number of large positions.

Winston Score History

Score breakdown

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Quality

Gross Margin
101.8%
Premium pricing power — 101.8% gross margin
Operating Margin
102.3%
Excellent — 102.3% operating margin
ROCE
-12.7%
Weak — -12.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
-47.5%
Shrinking sales (-47.5% YoY)
EPS YoY
+559.9%
Earnings growing fast (559.9% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
-12%
Weak — only -12% of profit becomes cash
FCF Margin
-45.8%
Burning cash (-45.8%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.19
Conservative — low debt load (0.19)
Interest Cover
12.89x
Comfortably covers interest (12.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio
3.9x
Attractive valuation — P/E 3.9

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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