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Fairfax Financial Holdings (LTS:0KV5) 10-Year RORE % : 25.40% (As of Sep. 2024)


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What is Fairfax Financial Holdings 10-Year RORE %?

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Fairfax Financial Holdings's 10-Year RORE % for the quarter that ended in Sep. 2024 was 25.40%.

The industry rank for Fairfax Financial Holdings's 10-Year RORE % or its related term are showing as below:

LTS:0KV5's 10-Year RORE % is ranked better than
81.84% of 369 companies
in the Insurance industry
Industry Median: 9.7 vs LTS:0KV5: 25.40

Fairfax Financial Holdings 10-Year RORE % Historical Data

The historical data trend for Fairfax Financial Holdings's 10-Year RORE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Fairfax Financial Holdings 10-Year RORE % Chart

Fairfax Financial Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
10-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.61 1.76 38.00 40.98 21.34

Fairfax Financial Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
10-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.44 21.34 22.12 26.71 25.40

Competitive Comparison of Fairfax Financial Holdings's 10-Year RORE %

For the Insurance - Property & Casualty subindustry, Fairfax Financial Holdings's 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Fairfax Financial Holdings's 10-Year RORE % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Fairfax Financial Holdings's 10-Year RORE % distribution charts can be found below:

* The bar in red indicates where Fairfax Financial Holdings's 10-Year RORE % falls into.



Fairfax Financial Holdings 10-Year RORE % Calculation

Fairfax Financial Holdings's 10-Year RORE % for the quarter that ended in Sep. 2024 is calculated as:

10-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 10-year -Cumulative Dividends per Share for 10-year )
=( 221.336-25.94 )/( 882.228-112.867 )
=195.396/769.361
=25.40 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Sep. 2024 and 10-year before.


Fairfax Financial Holdings  (LTS:0KV5) 10-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Fairfax Financial Holdings 10-Year RORE % Related Terms

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Fairfax Financial Holdings Business Description

Address
95 Wellington Street West, Suite 800, Toronto, ON, CAN, M5J 2N7
Fairfax provides reinsurance and property and casualty insurance in Canada, the United States, and other international markets. The company also has some noninsurance operations such as restaurants. Fairfax has been led by Prem Watsa, its chairman and CEO, since its formation in 1985.

Fairfax Financial Holdings Headlines

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