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MARKEL GROUP INC (MKL) Stock Fundamental Analysis

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

1838.16  -15.64 (-0.84%)

After market: 1838.16 0 (0%)

Fundamental Rating

4

MKL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 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 valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

MKL had positive earnings in the past year.
MKL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MKL reported negative net income in multiple years.
Of the past 5 years MKL 4 years had a positive operating cash flow.
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

The Return On Assets of MKL (4.57%) is better than 76.60% of its industry peers.
MKL has a Return On Equity of 16.74%. This is in the better half of the industry: MKL outperforms 71.63% 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's Profit Margin of 16.35% is fine compared to the rest of the industry. MKL outperforms 79.43% of its industry peers.
MKL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 24.39%, MKL belongs to the best of the industry, outperforming 85.82% of the companies in the same industry.
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.
MKL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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's Debt to FCF ratio of 1.65 is in line compared to the rest of the industry. MKL outperforms 53.90% of its industry peers.
MKL has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
MKL's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. MKL outperforms 63.12% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.26
Debt/FCF 1.65
Altman-Z N/A
ROIC/WACCN/A
WACC8.3%
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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4

3. Growth

3.1 Past

MKL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.93%, which is quite impressive.
The Earnings Per Share has been growing by 13.39% on average over the past years. This is quite good.
EPS 1Y (TTM)61.93%
EPS 3Y4.51%
EPS 5Y13.39%
EPS Q2Q%315.95%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-17.26%

3.2 Future

The Earnings Per Share is expected to grow by 14.37% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.29% on average over the next years.
EPS Next Y27.26%
EPS Next 2Y20.21%
EPS Next 3Y16.05%
EPS Next 5Y14.37%
Revenue Next Year-3.52%
Revenue Next 2Y0.5%
Revenue Next 3Y3.01%
Revenue Next 5Y3.29%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same 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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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 25.17, which means the current valuation is very expensive for MKL.
Based on the Price/Earnings ratio, MKL is valued a bit more expensive than the industry average as 74.47% of the companies are valued more cheaply.
MKL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 19.78, the valuation of MKL can be described as rather expensive.
66.67% 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 22.68, MKL is valued at the same level.
Industry RankSector Rank
PE 25.17
Fwd PE 19.78
MKL Price Earnings VS Forward Price EarningsMKL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MKL is valued a bit cheaper than the industry average as 78.72% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as MKL.
Industry RankSector Rank
P/FCF 8.91
EV/EBITDA 5.37
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

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 16.05% in the coming years.
PEG (NY)0.92
PEG (5Y)1.88
EPS Next 2Y20.21%
EPS Next 3Y16.05%

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0

5. Dividend

5.1 Amount

MKL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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MARKEL GROUP INC

NYSE:MKL (2/21/2025, 8:34:09 PM)

After market: 1838.16 0 (0%)

1838.16

-15.64 (-0.84%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-05 2025-02-05/amc
Earnings (Next)04-29 2025-04-29/amc
Inst Owners79.47%
Inst Owner Change2.89%
Ins Owners1.36%
Ins Owner Change-0.14%
Market Cap23.51B
Analysts70.77
Price Target1756.64 (-4.43%)
Short Float %1.47%
Short Ratio2.83
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)1.77%
PT rev (3m)-0.29%
EPS NQ rev (1m)-2.08%
EPS NQ rev (3m)-8.37%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-4.11%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)1.87%
Revenue NY rev (3m)2.16%
Valuation
Industry RankSector Rank
PE 25.17
Fwd PE 19.78
P/S 1.35
P/FCF 8.91
P/OCF 8.04
P/B 1.38
P/tB 1.84
EV/EBITDA 5.37
EPS(TTM)73.02
EY3.97%
EPS(NY)92.92
Fwd EY5.06%
FCF(TTM)206.26
FCFY11.22%
OCF(TTM)228.5
OCFY12.43%
SpS1362.18
BVpS1330.28
TBVpS998.19
PEG (NY)0.92
PEG (5Y)1.88
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
WACC8.3%
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)61.93%
EPS 3Y4.51%
EPS 5Y13.39%
EPS Q2Q%315.95%
EPS Next Y27.26%
EPS Next 2Y20.21%
EPS Next 3Y16.05%
EPS Next 5Y14.37%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-17.26%
Revenue Next Year-3.52%
Revenue Next 2Y0.5%
Revenue Next 3Y3.01%
Revenue Next 5Y3.29%
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%