NYSE:MKL

Stock Analysis Report

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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

Reasonable growth potential with adequate 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: MKL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.1%

MKL

0.9%

US Insurance

2.6%

US Market


1 Year Return

-4.7%

MKL

-13.9%

US Insurance

15.4%

US Market

Return vs Industry: MKL exceeded the US Insurance industry which returned -14.3% over the past year.

Return vs Market: MKL underperformed the US Market which returned 16.2% over the past year.


Shareholder returns

MKLIndustryMarket
7 Day5.1%0.9%2.6%
30 Day16.3%7.4%6.1%
90 Day27.2%13.6%16.6%
1 Year-4.7%-4.7%-11.7%-13.9%17.8%15.4%
3 Year0.5%0.5%3.4%-4.3%43.9%34.7%
5 Year22.9%22.9%34.2%17.4%76.2%57.3%

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

Valuation

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

68.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MKL ($1063) is trading above our estimate of fair value ($310.08)

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


Price To Earnings Ratio

PE vs Industry: MKL is poor value based on its PE Ratio (68.3x) compared to the US Insurance industry average (14.2x).

PE vs Market: MKL is poor value based on its PE Ratio (68.3x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: MKL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: MKL is overvalued based on its PB Ratio (1.4x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

How is Markel forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

137.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKL's forecast earnings growth (137.1% per year) is above the savings rate (2.2%).

Earnings vs Market: MKL's earnings (137.1% per year) are forecast to grow faster than the US market (22.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MKL's revenue (11.5% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: MKL's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MKL's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Markel performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MKL has high quality earnings.

Growing Profit Margin: MKL's current net profit margins (2.7%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: MKL's earnings have grown by 2% per year over the past 5 years.

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

Earnings vs Industry: MKL had negative earnings growth (-71%) over the past year, making it difficult to compare to the Insurance industry average (-4.5%).


Return on Equity

High ROE: MKL's Return on Equity (2.1%) is considered low.


Next Steps

Financial Health

How is Markel's financial position?


Financial Position Analysis

Short Term Liabilities: MKL's short term assets ($15.8B) exceed its short term liabilities ($4.9B).

Long Term Liabilities: MKL's short term assets ($15.8B) do not cover its long term liabilities ($22.6B).


Debt to Equity History and Analysis

Debt Level: MKL's debt to equity ratio (28.8%) is considered satisfactory.

Reducing Debt: MKL's debt to equity ratio has reduced from 28.8% to 28.8% over the past 5 years.

Debt Coverage: MKL's debt is well covered by operating cash flow (45.3%).

Interest Coverage: MKL's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if MKL'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 MKL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Tom Gayner (59 yo)

4.58yrs

Tenure

US$4,832,682

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: Tom's total compensation ($USD4.83M) is below average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Tom's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Gayner
Co-CEO & Director4.58yrsUS$4.83m0.18%
$ 26.4m
Richard Whitt
Co-CEO & Director4yrsUS$4.83m0.052%
$ 7.5m
Bradley Kiscaden
President & Chief Administrative Officer of Insurance Operations1.92yrsUS$2.57m0.037%
$ 5.4m
Robert Cox
President & COO of Insurance Operations1.92yrsUS$2.57m0.0011%
$ 166.1k
Jeremy Noble
Senior VP & CFO1.92yrsUS$1.44m0.0044%
$ 642.8k
Linda Schreiner
Senior Vice President of Strategic Management4.58yrsUS$1.25m0.0073%
$ 1.1m
Saurabh Madaan
Managing Director of Investments2.58yrsno datano data
Oscar Guerrero
Chief Accounting Officer0.25yrno data0.0030%
$ 431.9k
Richard Grinnan
Senior VP6.17yrsno data0.0099%
$ 1.4m
Paul Broughton
Managing Director of Marketingno datano datano data
Frederick May
Vice President of Sales & Business Development1.58yrsno datano data
Jeff Lamb
Managing Director of Underwritingno datano datano data

2.3yrs

Average Tenure

56.5yo

Average Age

Experienced Management: MKL's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Gayner
Co-CEO & Director4.58yrsUS$4.83m0.18%
$ 26.4m
Richard Whitt
Co-CEO & Director4yrsUS$4.83m0.052%
$ 7.5m
Michael O'Reilly
Independent Director7.25yrsUS$243.17k0.020%
$ 2.8m
Alan Kirshner
Chairman Emeritus0.25yrUS$1.47m0.15%
$ 22.3m
Steven Markel
Chairman0.25yrUS$1.24m0.77%
$ 111.6m
Darrell Martin
Independent Director10.83yrsUS$235.16k0.13%
$ 19.3m
Anthony Markel
Director42.58yrsUS$689.67k0.65%
$ 94.0m
K. Connell
Independent Director7.25yrsUS$235.16k0.019%
$ 2.7m
Stewart Kasen
Lead Independent Director9.25yrsUS$257.16k0.043%
$ 6.2m
Lemuel Lewis
Independent Director13.5yrsUS$243.17k0.040%
$ 5.8m
Harold Morrison
Independent Director0.58yrno data0.0019%
$ 270.1k
Diane Leopold
Independent Director2.25yrsUS$243.17k0.011%
$ 1.6m

5.6yrs

Average Tenure

71.5yo

Average Age

Experienced Board: MKL's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Markel Corporation
  • Ticker: MKL
  • Exchange: NYSE
  • Founded: 1930
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$14.444b
  • Shares outstanding: 13.78m
  • Website: https://www.markel.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 of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 23:32
End of Day Share Price2020/08/05 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.