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MARKEL GROUP INC (MKL) Stock Fundamental Analysis

NYSE:MKL - New York Stock Exchange, Inc. - US5705351048 - Common Stock

1774.07  +5.03 (+0.28%)

After market: 1774.07 0 (0%)

Fundamental Rating

4

Taking everything into account, MKL scores 4 out of 10 in our fundamental rating. MKL was compared to 144 industry peers in the Insurance industry. While MKL is still in line with the averages on profitability rating, there are concerns on its financial health. MKL is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year MKL was profitable.
MKL had a positive operating cash flow in the past year.
Of the past 5 years MKL 4 years were profitable.
In the past 5 years MKL always reported a positive cash flow from operatings.
MKL Yearly Net Income VS EBIT VS OCF VS FCFMKL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B

1.2 Ratios

Looking at the Return On Assets, with a value of 4.57%, MKL is in the better half of the industry, outperforming 76.06% of the companies in the same industry.
The Return On Equity of MKL (16.74%) is better than 71.83% of its industry peers.
Industry RankSector Rank
ROA 4.57%
ROE 16.74%
ROIC N/A
ROA(3y)2.65%
ROA(5y)2.92%
ROE(3y)9.08%
ROE(5y)9.89%
ROIC(3y)N/A
ROIC(5y)N/A
MKL Yearly ROA, ROE, ROICMKL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15

1.3 Margins

MKL has a Profit Margin of 16.35%. This is in the better half of the industry: MKL outperforms 79.58% of its industry peers.
MKL's Profit Margin has improved in the last couple of years.
MKL has a better Operating Margin (24.39%) than 83.80% of its industry peers.
MKL's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 24.39%
PM (TTM) 16.35%
GM N/A
OM growth 3Y3.42%
OM growth 5Y39.61%
PM growth 3Y16.35%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
MKL Yearly Profit, Operating, Gross MarginsMKL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20 25

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3

2. Health

2.1 Basic Checks

MKL does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for MKL has been increased compared to 1 year ago.
Compared to 5 years ago, MKL has less shares outstanding
MKL has a better debt/assets ratio than last year.
MKL Yearly Shares OutstandingMKL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M 10M
MKL Yearly Total Debt VS Total AssetsMKL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B 50B

2.2 Solvency

The Debt to FCF ratio of MKL is 1.65, which is an excellent value as it means it would take MKL, only 1.65 years of fcf income to pay off all of its debts.
MKL has a Debt to FCF ratio (1.65) which is comparable to the rest of the industry.
MKL has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
MKL has a Debt to Equity ratio of 0.26. This is in the better half of the industry: MKL outperforms 63.38% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF 1.65
Altman-Z N/A
ROIC/WACCN/A
WACC8.44%
MKL Yearly LT Debt VS Equity VS FCFMKL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
MKL Yearly Current Assets VS Current LiabilitesMKL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2022 2023 200M 400M 600M 800M

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5

3. Growth

3.1 Past

The earnings per share for MKL have decreased strongly by -61.86% in the last year.
The Earnings Per Share has been growing by 38.84% on average over the past years. This is a very strong growth
MKL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.34%.
MKL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.23% yearly.
EPS 1Y (TTM)-61.86%
EPS 3Y38.84%
EPS 5YN/A
EPS Q2Q%-118.35%
Revenue 1Y (TTM)13.34%
Revenue growth 3Y17.53%
Revenue growth 5Y18.23%
Sales Q2Q%9.85%

3.2 Future

The Earnings Per Share is expected to grow by 22.60% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.48% on average over the next years.
EPS Next Y92.01%
EPS Next 2Y47.84%
EPS Next 3Y34.01%
EPS Next 5Y22.6%
Revenue Next Year7.35%
Revenue Next 2Y2.28%
Revenue Next 3Y3.01%
Revenue Next 5Y4.48%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
MKL Yearly Revenue VS EstimatesMKL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B
MKL Yearly EPS VS EstimatesMKL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 50 -50 100

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 59.85, which means the current valuation is very expensive for MKL.
80.99% of the companies in the same industry are cheaper than MKL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MKL to the average of the S&P500 Index (27.96), we can say MKL is valued expensively.
MKL is valuated rather expensively with a Price/Forward Earnings ratio of 18.00.
65.49% of the companies in the same industry are cheaper than MKL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, MKL is valued a bit cheaper.
Industry RankSector Rank
PE 59.85
Fwd PE 18
MKL Price Earnings VS Forward Price EarningsMKL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MKL is valued a bit cheaper than 77.46% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MKL.
Industry RankSector Rank
P/FCF 8.65
EV/EBITDA 5.17
MKL Per share dataMKL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 200 400 600 800 1K

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MKL's earnings are expected to grow with 34.01% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y47.84%
EPS Next 3Y34.01%

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0

5. Dividend

5.1 Amount

No dividends for MKL!.
Industry RankSector Rank
Dividend Yield N/A

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MARKEL GROUP INC

NYSE:MKL (1/17/2025, 8:15:01 PM)

After market: 1774.07 0 (0%)

1774.07

+5.03 (+0.28%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)01-29 2025-01-29/amc
Inst Owners79.47%
Inst Owner Change0.35%
Ins Owners1.36%
Ins Owner Change-0.23%
Market Cap22.81B
Analysts71.43
Price Target1726.04 (-2.71%)
Short Float %1.18%
Short Ratio2.79
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend2.76
Dividend Growth(5Y)N/A
DP1.26%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-47.61%
Min EPS beat(2)-119.59%
Max EPS beat(2)24.37%
EPS beat(4)2
Avg EPS beat(4)-61.07%
Min EPS beat(4)-163.09%
Max EPS beat(4)24.37%
EPS beat(8)5
Avg EPS beat(8)-27.15%
EPS beat(12)9
Avg EPS beat(12)-1.07%
EPS beat(16)12
Avg EPS beat(16)2.42%
Revenue beat(2)0
Avg Revenue beat(2)-3.67%
Min Revenue beat(2)-3.7%
Max Revenue beat(2)-3.64%
Revenue beat(4)2
Avg Revenue beat(4)9.73%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)24%
Revenue beat(8)5
Avg Revenue beat(8)8.34%
Revenue beat(12)6
Avg Revenue beat(12)3.8%
Revenue beat(16)9
Avg Revenue beat(16)8.44%
PT rev (1m)0%
PT rev (3m)-1.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)-2.3%
Revenue NY rev (3m)0.94%
Valuation
Industry RankSector Rank
PE 59.85
Fwd PE 18
P/S 1.31
P/FCF 8.65
P/OCF 7.81
P/B 1.34
P/tB 1.79
EV/EBITDA 5.17
EPS(TTM)29.64
EY1.67%
EPS(NY)98.56
Fwd EY5.56%
FCF(TTM)205.13
FCFY11.56%
OCF(TTM)227.26
OCFY12.81%
SpS1354.77
BVpS1323.04
TBVpS992.76
PEG (NY)0.65
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.57%
ROE 16.74%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 24.39%
PM (TTM) 16.35%
GM N/A
FCFM 15.14%
ROA(3y)2.65%
ROA(5y)2.92%
ROE(3y)9.08%
ROE(5y)9.89%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y3.42%
OM growth 5Y39.61%
PM growth 3Y16.35%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF 1.65
Debt/EBITDA 0.97
Cap/Depr 109.48%
Cap/Sales 1.63%
Interest Coverage 250
Cash Conversion 64.82%
Profit Quality 92.59%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score8
WACC8.44%
ROIC/WACCN/A
Cap/Depr(3y)70.69%
Cap/Depr(5y)58.18%
Cap/Sales(3y)1.65%
Cap/Sales(5y)1.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-61.86%
EPS 3Y38.84%
EPS 5YN/A
EPS Q2Q%-118.35%
EPS Next Y92.01%
EPS Next 2Y47.84%
EPS Next 3Y34.01%
EPS Next 5Y22.6%
Revenue 1Y (TTM)13.34%
Revenue growth 3Y17.53%
Revenue growth 5Y18.23%
Sales Q2Q%9.85%
Revenue Next Year7.35%
Revenue Next 2Y2.28%
Revenue Next 3Y3.01%
Revenue Next 5Y4.48%
EBIT growth 1Y44.9%
EBIT growth 3Y21.55%
EBIT growth 5Y65.07%
EBIT Next Year-77.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.81%
FCF growth 3Y15.61%
FCF growth 5Y26.31%
OCF growth 1Y15.43%
OCF growth 3Y17.05%
OCF growth 5Y25.56%