MARKEL GROUP INC (MKL) Stock Fundamental Analysis
NYSE:MKL - New York Stock Exchange, Inc. - US5705351048 - Common Stock - Currency: USD
Overall MKL gets a fundamental rating of 4 out of 10. We evaluated MKL against 143 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MKL had positive earnings in the past year.
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 has a Return On Assets of 2.73%. This is in the better half of the industry: MKL outperforms 60.84% of its industry peers.
MKL has a Return On Equity (10.27%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 10.27% | ||
| 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
Looking at the Profit Margin, with a value of 11.33%, MKL is in the better half of the industry, outperforming 70.63% of the companies in the same industry.
MKL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.10%, MKL is in the better half of the industry, outperforming 71.33% of the companies in the same industry.
MKL's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.1% | ||
| PM (TTM) | 11.33% | ||
| 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
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.
The number of shares outstanding for MKL has been reduced compared to 5 years ago.
MKL has a worse debt/assets ratio than last year.
2.2 Solvency
MKL has a debt to FCF ratio of 2.08. This is a good value and a sign of high solvency as MKL would need 2.08 years to pay back of all of its debts.
The Debt to FCF ratio of MKL (2.08) 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 better Debt to Equity ratio (0.26) than 65.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.37%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.42% 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.
MKL shows a decrease in Revenue. In the last year, the revenue decreased by -6.46%.
Measured over the past years, MKL shows a quite strong growth in Revenue. The Revenue has been growing by 11.78% on average per year.
EPS 1Y (TTM)44.42%
EPS 3Y4.51%
EPS 5Y13.39%
EPS Q2Q%4.6%
Revenue 1Y (TTM)-6.46%
Revenue growth 3Y8.97%
Revenue growth 5Y11.78%
Sales Q2Q%-20.6%
3.2 Future
The Earnings Per Share is expected to grow by 11.92% on average over the next years. This is quite good.
MKL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.06% yearly.
EPS Next Y31.79%
EPS Next 2Y21.83%
EPS Next 3Y16.05%
EPS Next 5Y11.92%
Revenue Next Year-7.21%
Revenue Next 2Y-1.53%
Revenue Next 3Y0.3%
Revenue Next 5Y3.06%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.15, the valuation of MKL can be described as expensive.
Based on the Price/Earnings ratio, MKL is valued a bit more expensive than the industry average as 70.63% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 25.82. MKL is around the same levels.
With a Price/Forward Earnings ratio of 17.17, MKL is valued on the expensive side.
66.43% 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 21.76, MKL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 17.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MKL is valued a bit cheaper than 60.14% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MKL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.18 | ||
| EV/EBITDA | 7.94 |
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 16.05% in the coming years.
PEG (NY)0.79
PEG (5Y)1.88
EPS Next 2Y21.83%
EPS Next 3Y16.05%
5. Dividend
5.1 Amount
MKL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1860.45
+1.19 (+0.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners80.21%
Inst Owner Change2.59%
Ins Owners1.37%
Ins Owner Change1.02%
Market Cap23.65B
Analysts51.43
Price Target1942.08 (4.39%)
Short Float %1.38%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend2.78
Dividend Growth(5Y)N/A
DP2.04%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)41.28%
Min EPS beat(2)27.49%
Max EPS beat(2)55.06%
EPS beat(4)3
Avg EPS beat(4)-3.17%
Min EPS beat(4)-119.59%
Max EPS beat(4)55.06%
EPS beat(8)6
Avg EPS beat(8)-15.71%
EPS beat(12)9
Avg EPS beat(12)3.47%
EPS beat(16)13
Avg EPS beat(16)7.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.26%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)-1.93%
Revenue beat(4)0
Avg Revenue beat(4)-2.97%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)-1.93%
Revenue beat(8)3
Avg Revenue beat(8)4.33%
Revenue beat(12)5
Avg Revenue beat(12)1.05%
Revenue beat(16)7
Avg Revenue beat(16)4.82%
PT rev (1m)-1.26%
PT rev (3m)10.56%
EPS NQ rev (1m)-1.73%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)-0.73%
EPS NY rev (3m)3.56%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-2.16%
Revenue NY rev (1m)-1.33%
Revenue NY rev (3m)-3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 17.17 | ||
| P/S | 1.52 | ||
| P/FCF | 11.18 | ||
| P/OCF | 10.11 | ||
| P/B | 1.38 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)73.97
EY3.98%
EPS(NY)108.38
Fwd EY5.83%
FCF(TTM)166.47
FCFY8.95%
OCF(TTM)184.07
OCFY9.89%
SpS1223.7
BVpS1349.21
TBVpS1002.45
PEG (NY)0.79
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 10.27% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 17.1% | ||
| PM (TTM) | 11.33% | ||
| GM | N/A | ||
| FCFM | 13.6% |
ROA(3y)2.38%
ROA(5y)2.8%
ROE(3y)8.69%
ROE(5y)9.72%
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 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
F-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 2.08 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 65.36% | ||
| Cap/Sales | 1.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.94% | ||
| Profit Quality | 120.09% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC8.37%
ROIC/WACCN/A
Cap/Depr(3y)81.13%
Cap/Depr(5y)63.91%
Cap/Sales(3y)1.78%
Cap/Sales(5y)1.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.42%
EPS 3Y4.51%
EPS 5Y13.39%
EPS Q2Q%4.6%
EPS Next Y31.79%
EPS Next 2Y21.83%
EPS Next 3Y16.05%
EPS Next 5Y11.92%
Revenue 1Y (TTM)-6.46%
Revenue growth 3Y8.97%
Revenue growth 5Y11.78%
Sales Q2Q%-20.6%
Revenue Next Year-7.21%
Revenue Next 2Y-1.53%
Revenue Next 3Y0.3%
Revenue Next 5Y3.06%
EBIT growth 1Y-24.25%
EBIT growth 3Y4.62%
EBIT growth 5Y8.42%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-9.52%
FCF growth 3Y3.19%
FCF growth 5Y15.24%
OCF growth 1Y-9.27%
OCF growth 3Y4.48%
OCF growth 5Y15.28%