Post by
retiredcf on Sep 10, 2022 5:05pm
Assessment
FFH is a classic 'value' stock, trading at only 10X earnings. It has had a decent year after doing nothing for some time. Growth has gone out of favour, and investors now appreciate more its book value and solid cash flow. Earnings bounce around depending on its deals, but 2023 earnings are expected to rise nearly 50%. The balance sheet is decent, and it has exposure to many companies that could do well if the market rallies (one day!). Insider own 11% and are considered extremely good. We do think they are good, but perhaps less so than their near-perfect reputation. They have had some bad investments over the years, and the stock is still lower than it was six years ago. But, with a $17B market cap, a 1.9% dividend (hasn't changed in 10 years, though) and a very low valuation with upside exposure, we would be fine holding it for a conservative investor. (5iResearch)