DB:MKV

Stock Analysis Report

Executive Summary

Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, the United Kingdom, Canada, and internationally.


Snowflake Analysis

Poor track record with worrying balance sheet.


Similar Companies

Share Price & News

How has Markel's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MKV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

MKV

0.9%

DE Insurance

0.3%

DE Market


1 Year Return

18.0%

MKV

26.9%

DE Insurance

13.8%

DE Market

Return vs Industry: MKV underperformed the German Insurance industry which returned 29.2% over the past year.

Return vs Market: MKV exceeded the German Market which returned 15.9% over the past year.


Shareholder returns

MKVIndustryMarket
7 Day-0.2%0.9%0.3%
30 Day6.7%1.4%1.3%
90 Day6.7%3.9%5.2%
1 Year18.0%18.0%32.5%26.9%17.4%13.8%
3 Year25.0%25.0%63.6%43.8%15.9%5.7%
5 Year75.7%75.7%98.0%58.5%27.9%10.6%

Price Volatility Vs. Market

How volatile is Markel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Markel undervalued compared to its fair value and its price relative to the market?

30.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MKV (€1052) is trading above our estimate of fair value (€946.65)

Significantly Below Fair Value: MKV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MKV is poor value based on its PE Ratio (30.1x) compared to the Insurance industry average (11.9x).

PE vs Market: MKV is poor value based on its PE Ratio (30.1x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: MKV's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MKV is overvalued based on its PB Ratio (1.5x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Markel forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-34.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKV's earnings are forecast to decline over the next 3 years (-34.8% per year).

Earnings vs Market: MKV's earnings are forecast to decline over the next 3 years (-34.8% per year).

High Growth Earnings: MKV's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MKV's revenue (0.5% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: MKV's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MKV's Return on Equity is forecast to be low in 3 years time (4.7%).


Next Steps

Past Performance

How has Markel performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MKV has a large one-off loss of $191.0M impacting its September 30 2019 financial results.

Growing Profit Margin: MKV's current net profit margins (6.7%) are lower than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: MKV's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: MKV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MKV had negative earnings growth (-48.2%) over the past year, making it difficult to compare to the Insurance industry average (7.8%).


Return on Equity

High ROE: MKV's Return on Equity (4.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Markel's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MKV has a low level of unsold assets or inventory.

Debt Coverage by Assets: MKV's debt is covered by short term assets (assets are 3.5x debt).


Financial Institutions Analysis

Asset Level: MKV's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MKV has a sufficient allowance for bad loans.

Low Risk Liabilities: MKV reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MKV has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MKV has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MKV has an appropriate level of bad loans.


Next Steps

Dividend

What is Markel's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage3.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MKV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MKV's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MKV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MKV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MKV's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Markel's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Tom Gayner (58yo)

4yrs

Tenure

US$3,713,001

Compensation

Mr. Thomas Sinnickson Gayner, also known as Tom, has been Co-Chief Executive Officer of Markel Corp. since January 1, 2016. Mr. Gayner is the Co-Chief Executive Officer at Markel Ventures, Inc., where he h ...


CEO Compensation Analysis

Compensation vs Market: Richie's total compensation ($USD3.71M) is about average for companies of similar size in the German market ($USD4.52M).

Compensation vs Earnings: Richie's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.0yrs

Average Tenure

58.5yo

Average Age

Experienced Management: MKV's management team is considered experienced (3 years average tenure).


Board Age and Tenure

10.3yrs

Average Tenure

71.5yo

Average Age

Experienced Board: MKV's board of directors are seasoned and experienced ( 10.3 years average tenure).


Insider Trading

Insider Buying: MKV insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€82,02705 Nov 19
Anthony Markel
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares78
Max Price€1,051.62
Sell€525,68601 Nov 19
Richard Whitt
EntityIndividual
Role
Member of the Board of Directors
Co-CEO & Director
Shares500
Max Price€1,051.37
Sell€676,01112 Aug 19
Steven Markel
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares677
Max Price€1,002.18
Sell€2,924,49709 Aug 19
Steven Markel
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares2,955
Max Price€994.32
Sell€41,27706 Aug 19
Anthony Markel
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares41
Max Price€1,006.75
Sell€1,371,80606 Aug 19
Steven Markel
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares1,367
Max Price€1,007.71
Sell€99206 Aug 19
Steven Markel
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares1
Max Price€992.12
Buy€92,34315 May 19
Lemuel Lewis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100
Max Price€923.43
Sell€40,74706 May 19
Anthony Markel
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares43
Max Price€947.60
Buy€89,46818 Mar 19
Lemuel Lewis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100
Max Price€894.68
Buy€172,59811 Mar 19
K. Connell
EntityIndividual
Shares200
Max Price€862.99
Sell€43,52907 Mar 19
Nora Crouch
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer & Controller
Shares50
Max Price€870.58

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Alan Kirshner (83yo)

    Executive Chairman

    • Tenure: 33.3yrs
    • Compensation: US$1.47m
  • Linda Schreiner (59yo)

    Senior Vice President of Strategic Management

    • Tenure: 4yrs
    • Compensation: US$1.05m
  • Tom Gayner (58yo)

    Co-CEO & Director

    • Tenure: 4yrs
    • Compensation: US$3.71m
  • Bob Cox (61yo)

    President & COO of Insurance Operations

    • Tenure: 1.3yrs
    • Compensation: US$1.97m
  • Richie Whitt (55yo)

    Co-CEO & Director

    • Tenure: 3.4yrs
    • Compensation: US$3.71m
  • Brad Kiscaden (56yo)

    President & Chief Administrative Officer of Insurance Operations

    • Tenure: 1.3yrs
    • Compensation: US$1.98m
  • Nora Crouch (59yo)

    Chief Accounting Officer & Controller

    • Tenure: 9.7yrs
  • Jeremy Noble (43yo)

    Senior VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$1.36m
  • Bruce Kay

    Managing Director - Investor Relations

    • Saurabh Madaan

      Managing Director of Investments

      • Tenure: 2yrs

    Board Members

    • Michael O'Reilly (75yo)

      Independent Director

      • Tenure: 6.7yrs
      • Compensation: US$243.62k
    • Alan Kirshner (83yo)

      Executive Chairman

      • Tenure: 33.3yrs
      • Compensation: US$1.47m
    • Steve Markel (70yo)

      Vice Chairman

      • Tenure: 27.8yrs
      • Compensation: US$1.24m
    • Darrell Martin (71yo)

      Independent Director

      • Tenure: 10.3yrs
      • Compensation: US$234.49k
    • Tony Markel (77yo)

      Vice Chairman

      • Tenure: 11.7yrs
      • Compensation: US$689.67k
    • Stewart Kasen (79yo)

      Lead Director

      • Tenure: 8.7yrs
      • Compensation: US$255.49k
    • Tom Gayner (58yo)

      Co-CEO & Director

      • Tenure: 4yrs
      • Compensation: US$3.71m
    • Debora Wilson (62yo)

      Independent Director

      • Tenure: 10.3yrs
      • Compensation: US$233.49k
    • Richie Whitt (55yo)

      Co-CEO & Director

      • Tenure: 3.4yrs
      • Compensation: US$3.71m
    • Lem Lewis (72yo)

      Independent Director

      • Tenure: 12.9yrs
      • Compensation: US$243.62k

    Company Information

    Markel Corporation's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Markel Corporation
    • Ticker: MKV
    • Exchange: DB
    • Founded: 1930
    • Industry: Property and Casualty Insurance
    • Sector: Insurance
    • Market Cap: US$16.414b
    • Listing Market Cap: US$14.895b
    • Shares outstanding: 13.81m
    • Website: https://www.markelcorp.com

    Number of Employees


    Location

    • Markel Corporation
    • 4521 Highwoods Parkway
    • Glen Allen
    • Virginia
    • 23060
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    MKLNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1986
    MKL *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 1986
    MKVDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1986
    0JYMLSE (London Stock Exchange)YesCommon SharesGBUSDDec 1986
    MKLC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.05 COM NPVBRBRLMay 2019

    Biography

    Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, the United Kingdom, Canada, and internationally. Its Insurance segment offers general and professional liability, property, personal lines, marine and energy, specialty programs, and workers' compensation insurance products. This segment also offers contract, commercial, and court bonds; coverage on automobiles or other vehicles held as collateral for loans; coverages for horse mortality, theft, infertility, transit, and specified perils; crime coverage; property and liability package coverage to small and medium sized businesses; accident and health coverage; coverage for legal expenses; and short-term trade credit coverage for commercial risks. The company’s Reinsurance segment offers general liability, professional liability, workers' compensation, medical malpractice, environmental impairment liability, and auto liability; property treaty products for catastrophe, per risk, and retrocessional exposures; and specialty treaty reinsurance products comprising structured and whole turnover credit, political risk, mortgage and contract, and commercial surety reinsurance programs. Its Markel Ventures segment provides equipment used in baking systems and food processing; portable dredges; over-the-road car haulers and equipment; laminated oak and composite wood flooring; storage and transportation equipment for specialty gas; dormitory furniture, wall systems, medical casework, and marine panels; ornamental plants; fashion handbags; residential homes; and behavioral healthcare, concierge health programs, retail intelligence, and management and technology consulting services, as well as leases and manages manufactured housing communities. The company’s Other segment operates as an insurance-linked securities investment fund manager. Markel Corporation was founded in 1930 and is headquartered in Glen Allen, Virginia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/27 21:46
    End of Day Share Price2020/01/27 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.