MKL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. There are concerns on the financial health of MKL while its profitability can be described as average. MKL is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year MKL was profitable.
In the past year MKL had a positive cash flow from operations.
MKL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MKL had a positive operating cash flow.

1.2 Ratios

MKL's Return On Assets of 3.02% is fine compared to the rest of the industry. MKL outperforms 64.86% of its industry peers.
MKL has a Return On Equity of 11.28%. This is comparable to the rest of the industry: MKL outperforms 50.68% of its industry peers.

		Industry Rank	Sector Rank
ROA	3.02%
ROE	11.28%
ROIC	N/A

ROA(3y)2.38%

ROA(5y)2.8%

ROE(3y)8.69%

ROE(5y)9.72%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

MKL has a better Profit Margin (12.55%) than 68.24% of its industry peers.
MKL's Profit Margin has declined in the last couple of years.
MKL has a better Operating Margin (18.48%) than 68.24% of its industry peers.
In the last couple of years the Operating Margin of MKL has declined.

		Industry Rank	Sector Rank
OM	18.48%
PM (TTM)	12.55%
GM	N/A

OM growth 3Y-3.99%

OM growth 5Y-3%

PM growth 3Y-6.22%

PM growth 5Y-3.63%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

MKL does not have a ROIC to compare to the WACC, probably because it is not profitable.
MKL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MKL has less shares outstanding
The debt/assets ratio for MKL is higher compared to a year ago.

2.2 Solvency

The Debt to FCF ratio of MKL is 1.80, which is an excellent value as it means it would take MKL, only 1.80 years of fcf income to pay off all of its debts.
MKL has a Debt to FCF ratio of 1.80. This is comparable to the rest of the industry: MKL outperforms 53.38% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that MKL is not too dependend on debt financing.
MKL has a Debt to Equity ratio of 0.24. This is in the better half of the industry: MKL outperforms 64.19% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.24
Debt/FCF	1.8
Altman-Z	N/A

ROIC/WACCN/A

WACC8.21%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 234.35% over the past year.
MKL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.39% yearly.
The Revenue has decreased by -6.96% in the past year.
The Revenue has been growing by 11.78% on average over the past years. This is quite good.

EPS 1Y (TTM)234.35%

EPS 3Y4.51%

EPS 5Y13.39%

EPS Q2Q%865.09%

Revenue 1Y (TTM)-6.96%

Revenue growth 3Y8.97%

Revenue growth 5Y11.78%

Sales Q2Q%6.12%

3.2 Future

MKL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.31% yearly.
The Revenue is expected to grow by 3.46% on average over the next years.

EPS Next Y47.83%

EPS Next 2Y24.16%

EPS Next 3Y19.85%

EPS Next 5Y13.31%

Revenue Next Year-3.51%

Revenue Next 2Y-2.96%

Revenue Next 3Y-0.99%

Revenue Next 5Y3.46%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 20.59 indicates a rather expensive valuation of MKL.
68.92% 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 (28.32), we can say MKL is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.13, which indicates a rather expensive current valuation of MKL.
Based on the Price/Forward Earnings ratio, MKL is valued a bit more expensive than 66.22% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MKL to the average of the S&P500 Index (25.57), we can say MKL is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	20.59
Fwd PE	18.13

4.2 Price Multiples

62.16% of the companies in the same industry are more expensive than MKL, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as MKL.

		Industry Rank	Sector Rank
P/FCF	10.83
EV/EBITDA	7.78

4.3 Compensation for Growth

MKL's 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 19.85% in the coming years.