WHITE MOUNTAINS INSURANCE GP (WTM)
BMG9618E1075 - Common Stock
We assign a fundamental rating of 4 out of 10 to WTM. WTM was compared to 141 industry peers in the Insurance industry. WTM has an average financial health and profitability rating. WTM has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WTM had positive earnings in the past year.
In the past year WTM had a positive cash flow from operations.
WTM had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: WTM reported negative operating cash flow in multiple years.
1.2 Ratios
With an excellent Return On Assets value of 5.99%, WTM belongs to the best of the industry, outperforming 89.93% of the companies in the same industry.
WTM has a Return On Equity (11.85%) which is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 6.00%, WTM belongs to the best of the industry, outperforming 88.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 11.85% | ||
| ROIC | 6% |
ROA(3y)4.28%
ROA(5y)7.58%
ROE(3y)8.45%
ROE(5y)11.24%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WTM's Profit Margin of 23.18% is amongst the best of the industry. WTM outperforms 91.37% of its industry peers.
In the last couple of years the Profit Margin of WTM has declined.
Looking at the Operating Margin, with a value of 28.99%, WTM belongs to the top of the industry, outperforming 90.65% of the companies in the same industry.
WTM's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.99% | ||
| PM (TTM) | 23.18% | ||
| GM | N/A |
OM growth 3Y-20.35%
OM growth 5YN/A
PM growth 3Y-27.19%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WTM is destroying value.
Compared to 1 year ago, WTM has less shares outstanding
The number of shares outstanding for WTM has been reduced compared to 5 years ago.
The debt/assets ratio for WTM has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of WTM is 1.40, which is an excellent value as it means it would take WTM, only 1.40 years of fcf income to pay off all of its debts.
WTM has a Debt to FCF ratio of 1.40. This is in the better half of the industry: WTM outperforms 62.59% of its industry peers.
WTM has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.13, WTM belongs to the top of the industry, outperforming 81.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | N/A |
ROIC/WACC0.7
WACC8.58%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for WTM have decreased strongly by -28.30% in the last year.
Measured over the past years, WTM shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.70% on average per year.
WTM shows a strong growth in Revenue. In the last year, the Revenue has grown by 52.77%.
The Revenue has been growing by 42.47% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-28.3%
EPS 3Y-4.7%
EPS 5YN/A
EPS growth Q2Q613%
Revenue 1Y (TTM)52.77%
Revenue growth 3Y22.43%
Revenue growth 5Y42.47%
Revenue growth Q2Q68.37%
3.2 Future
WTM is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -44.75% yearly.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y-23.69%
EPS Next 2Y-44.75%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
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 decreasing.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.94 indicates a reasonable valuation of WTM.
Based on the Price/Earnings ratio, WTM is valued a bit cheaper than the industry average as 66.91% of the companies are valued more expensively.
WTM is valuated cheaply when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.72, which indicates a very decent valuation of WTM.
WTM's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, WTM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 11.72 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as WTM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.29 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
WTM's earnings are expected to decrease with -44.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-44.75%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.06%, WTM is not a good candidate for dividend investing.
WTM's Dividend Yield is slightly below the industry average, which is at 4.36.
With a Dividend Yield of 0.06, WTM pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.06% |
5.2 History
The dividend of WTM decreases each year by -1.37%.
WTM has been paying a dividend for at least 10 years, so it has a reliable track record.
As WTM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-1.37%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
WTM pays out 0.52% of its income as dividend. This is a sustainable payout ratio.
WTM's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP0.52%
EPS Next 2Y-44.75%
EPS Next 3YN/A
WHITE MOUNTAINS INSURANCE GP
NYSE:WTM (4/25/2024, 1:34:53 PM)
1775
+8.05 (+0.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 11.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 11.85% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.99% | ||
| PM (TTM) | 23.18% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-28.3%
EPS 3Y-4.7%
EPS 5Y
EPS growth Q2Q
EPS Next Y-23.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)52.77%
Revenue growth 3Y22.43%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y