MARKEL GROUP INC (MKL) Stock Fundamental Analysis
NYSE:MKL - New York Stock Exchange, Inc. - US5705351048 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MKL. MKL was compared to 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 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.
MKL had a positive operating cash flow in the past year.
MKL had positive earnings in 4 of the past 5 years.
In the past 5 years MKL always reported a positive cash flow from operatings.
1.2 Ratios
MKL has a Return On Assets of 4.20%. This is in the better half of the industry: MKL outperforms 79.02% of its industry peers.
MKL's Return On Equity of 15.37% is fine compared to the rest of the industry. MKL outperforms 64.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 15.37% | ||
| 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
With a decent Profit Margin value of 15.64%, MKL is doing good in the industry, outperforming 79.02% of the companies in the same industry.
MKL's Profit Margin has declined in the last couple of years.
MKL has a Operating Margin of 22.34%. This is amongst the best in the industry. MKL outperforms 81.12% of its industry peers.
In the last couple of years the Operating Margin of MKL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.34% | ||
| PM (TTM) | 15.64% | ||
| 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.
Compared to 1 year ago, MKL has less shares outstanding
MKL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MKL is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of MKL is 1.85, which is an excellent value as it means it would take MKL, only 1.85 years of fcf income to pay off all of its debts.
MKL's Debt to FCF ratio of 1.85 is in line compared to the rest of the industry. MKL outperforms 50.35% 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.
With a decent Debt to Equity ratio value of 0.26, MKL is doing good in the industry, outperforming 67.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.16%
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 61.93% over the past year.
Measured over the past years, MKL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.39% on average per year.
The Revenue has been growing slightly by 5.17% in the past year.
MKL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.78% yearly.
EPS 1Y (TTM)61.93%
EPS 3Y4.51%
EPS 5Y13.39%
EPS Q2Q%315.95%
Revenue 1Y (TTM)5.17%
Revenue growth 3Y8.97%
Revenue growth 5Y11.78%
Sales Q2Q%-19.6%
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 11.92% yearly.
MKL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.06% yearly.
EPS Next Y32.75%
EPS Next 2Y22.79%
EPS Next 3Y19.55%
EPS Next 5Y11.92%
Revenue Next Year-5.66%
Revenue Next 2Y-0.74%
Revenue Next 3Y1.46%
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
The Price/Earnings ratio is 24.69, which indicates a rather expensive current valuation of MKL.
Based on the Price/Earnings ratio, MKL is valued a bit more expensive than 71.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.79. MKL is around the same levels.
A Price/Forward Earnings ratio of 18.60 indicates a rather expensive valuation of MKL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MKL indicates a slightly more expensive valuation: MKL is more expensive than 65.03% of the companies listed in the same industry.
MKL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 18.6 |
4.2 Price Multiples
MKL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MKL is cheaper than 74.13% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as MKL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.8 | ||
| EV/EBITDA | 5.83 |
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.
MKL's earnings are expected to grow with 19.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)1.84
EPS Next 2Y22.79%
EPS Next 3Y19.55%
5. Dividend
5.1 Amount
No dividends for MKL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1803.15
-5.26 (-0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners80.21%
Inst Owner Change1.14%
Ins Owners1.37%
Ins Owner Change0.95%
Market Cap22.92B
Analysts52
Price Target1942.08 (7.7%)
Short Float %1.39%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend2.78
Dividend Growth(5Y)N/A
DP1.38%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-32.27%
Min EPS beat(2)-119.59%
Max EPS beat(2)55.06%
EPS beat(4)3
Avg EPS beat(4)-6.54%
Min EPS beat(4)-119.59%
Max EPS beat(4)55.06%
EPS beat(8)5
Avg EPS beat(8)-20.51%
EPS beat(12)9
Avg EPS beat(12)2.62%
EPS beat(16)13
Avg EPS beat(16)6.44%
Revenue beat(2)0
Avg Revenue beat(2)-2.81%
Min Revenue beat(2)-3.7%
Max Revenue beat(2)-1.93%
Revenue beat(4)1
Avg Revenue beat(4)3.69%
Min Revenue beat(4)-3.7%
Max Revenue beat(4)24%
Revenue beat(8)4
Avg Revenue beat(8)5.33%
Revenue beat(12)5
Avg Revenue beat(12)0.72%
Revenue beat(16)8
Avg Revenue beat(16)6.01%
PT rev (1m)1.05%
PT rev (3m)13.95%
EPS NQ rev (1m)-5.01%
EPS NQ rev (3m)-26.59%
EPS NY rev (1m)4.32%
EPS NY rev (3m)-1.64%
Revenue NQ rev (1m)-1.65%
Revenue NQ rev (3m)-2.15%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.69 | ||
| Fwd PE | 18.6 | ||
| P/S | 1.38 | ||
| P/FCF | 9.8 | ||
| P/OCF | 8.83 | ||
| P/B | 1.35 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 5.83 |
EPS(TTM)73.02
EY4.05%
EPS(NY)96.94
Fwd EY5.38%
FCF(TTM)184.03
FCFY10.21%
OCF(TTM)204.09
OCFY11.32%
SpS1307.69
BVpS1330.91
TBVpS1000.82
PEG (NY)0.75
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 15.37% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 22.34% | ||
| PM (TTM) | 15.64% | ||
| GM | N/A | ||
| FCFM | 14.07% |
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-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.85 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 74.48% | ||
| Cap/Sales | 1.53% | ||
| Interest Coverage | 18.81 | ||
| Cash Conversion | 63.97% | ||
| Profit Quality | 89.99% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.16%
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)61.93%
EPS 3Y4.51%
EPS 5Y13.39%
EPS Q2Q%315.95%
EPS Next Y32.75%
EPS Next 2Y22.79%
EPS Next 3Y19.55%
EPS Next 5Y11.92%
Revenue 1Y (TTM)5.17%
Revenue growth 3Y8.97%
Revenue growth 5Y11.78%
Sales Q2Q%-19.6%
Revenue Next Year-5.66%
Revenue Next 2Y-0.74%
Revenue Next 3Y1.46%
Revenue Next 5Y3.06%
EBIT growth 1Y26.76%
EBIT growth 3Y4.62%
EBIT growth 5Y8.42%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-7.48%
FCF growth 3Y3.19%
FCF growth 5Y15.24%
OCF growth 1Y-6.92%
OCF growth 3Y4.48%
OCF growth 5Y15.28%