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Markel

NYSE:MKL
Snowflake Description

Excellent balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MKL
NYSE
$15B
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, the United Kingdom, Canada, and internationally. The last earnings update was 48 days ago. More info.


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MKL Share Price and Events
7 Day Returns
-0.2%
NYSE:MKL
0.5%
US Insurance
0.3%
US Market
1 Year Returns
-2.3%
NYSE:MKL
12.1%
US Insurance
0.7%
US Market
MKL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Markel (MKL) -0.2% 1.6% 8.7% -2.3% 15.9% 64.8%
US Insurance 0.5% 3.5% 9.2% 12.1% 39.9% 45.3%
US Market 0.3% 0.4% 0.6% 0.7% 37.2% 37.4%
1 Year Return vs Industry and Market
  • MKL underperformed the Insurance industry which returned 12.1% over the past year.
  • MKL underperformed the Market in United States of America which returned 0.7% over the past year.
Price Volatility
MKL
Industry
5yr Volatility vs Market

Value

 Is Markel undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Markel to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Markel.

NYSE:MKL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $767.20 * 4.8%
$37.13
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $767.20
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MKL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.69 (1 + (1- 21%) (22.32%))
0.874
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.874 * 5.96%)
7.94%

Discounted Cash Flow Calculation for NYSE:MKL using Excess Returns Model Model

The calculations below outline how an intrinsic value for Markel is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:MKL Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (4.8% – 7.94%) * $767.20)
$-23.77
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-23.77 / (7.94% - 2.73%)
$-456.38
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $767.20 + $-456.38
$310.81
NYSE:MKL Discount to Share Price
Calculation Result
Value per share (USD) From above. $310.81
Current discount Discount to share price of $1,077.75
= -1 x ($1,077.75 - $310.81) / $310.81
-246.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Markel is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Markel's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Markel's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MKL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $37.45
NYSE:MKL Share Price ** NYSE (2019-06-17) in USD $1077.75
United States of America Insurance Industry PE Ratio Median Figure of 90 Publicly-Listed Insurance Companies 17.59x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Markel.

NYSE:MKL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MKL Share Price ÷ EPS (both in USD)

= 1077.75 ÷ 37.45

28.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Markel is overvalued based on earnings compared to the US Insurance industry average.
  • Markel is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Markel's expected growth come at a high price?
Raw Data
NYSE:MKL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 28.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
-8.6%per year
United States of America Insurance Industry PEG Ratio Median Figure of 66 Publicly-Listed Insurance Companies 1.55x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:MKL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 28.78x ÷ -8.6%

-3.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Markel earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Markel's assets?
Raw Data
NYSE:MKL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $706.98
NYSE:MKL Share Price * NYSE (2019-06-17) in USD $1077.75
United States of America Insurance Industry PB Ratio Median Figure of 119 Publicly-Listed Insurance Companies 1.21x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NYSE:MKL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MKL Share Price ÷ Book Value per Share (both in USD)

= 1077.75 ÷ 706.98

1.52x

* Primary Listing of Markel.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Markel is overvalued based on assets compared to the US Insurance industry average.
X
Value checks
We assess Markel's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Markel has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-8.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Markel expected to grow at an attractive rate?
  • Markel's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Markel's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Markel's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MKL Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MKL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts -8.6%
NYSE:MKL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 2.2%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MKL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MKL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 8,349 526 4
2019-12-31 8,449 939 3
NYSE:MKL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 7,738 854 521
2018-12-31 6,841 893 -133
2018-09-30 7,461 1,023 1,041
2018-06-30 6,731 928 382
2018-03-31 6,225 904 248
2017-12-31 6,062 859 362
2017-09-30 5,828 809 65
2017-06-30 5,753 702 406
2017-03-31 5,648 651 338
2016-12-31 5,612 535 440
2016-09-30 5,604 425 511
2016-06-30 5,515 483 536

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Markel's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Markel's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MKL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Markel Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MKL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 38.57 42.75 34.70 3.00
2019-12-31 68.79 68.85 68.72 2.00
NYSE:MKL Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 37.45
2018-12-31 -9.55
2018-09-30 74.78
2018-06-30 27.39
2018-03-31 17.75
2017-12-31 25.89
2017-09-30 4.65
2017-06-30 29.01
2017-03-31 24.12
2016-12-31 31.41
2016-09-30 36.49
2016-06-30 38.31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Markel will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Markel's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Markel has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Markel performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Markel's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Markel's year on year earnings growth rate has been positive over the past 5 years.
  • Markel's 1-year earnings growth exceeds its 5-year average (110.5% vs 0.9%)
  • Markel's earnings growth has exceeded the US Insurance industry average in the past year (110.5% vs 6.6%).
Earnings and Revenue History
Markel's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Markel Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MKL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 7,738.30 521.04
2018-12-31 6,841.29 -133.01
2018-09-30 7,460.70 1,041.47
2018-06-30 6,730.90 381.63
2018-03-31 6,225.38 247.55
2017-12-31 6,061.66 361.53
2017-09-30 5,828.02 64.97
2017-06-30 5,753.15 406.28
2017-03-31 5,647.60 338.03
2016-12-31 5,612.03 440.22
2016-09-30 5,603.86 511.00
2016-06-30 5,515.34 536.03
2016-03-31 5,444.01 554.19
2015-12-31 5,369.98 586.92
2015-09-30 5,285.28 501.22
2015-06-30 5,241.80 471.87
2015-03-31 5,196.17 414.81
2014-12-31 5,133.67 313.00
2014-09-30 5,077.70 297.37
2014-06-30 4,970.08 288.43
2014-03-31 4,742.87 279.03
2013-12-31 4,323.08 282.98
2013-09-30 3,851.25 245.53
2013-06-30 3,425.36 231.29
2013-03-31 3,086.84 284.82
2012-12-31 3,000.11 250.28
2012-09-30 2,877.26 240.29
2012-06-30 2,787.57 242.19

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Markel has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Markel used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.
  • Markel's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Markel's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Markel has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Markel's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Markel's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Markel is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Markel's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Markel's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Markel Company Filings, last reported 2 months ago.

NYSE:MKL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 9,966.35 3,330.90 3,169.71
2018-12-31 9,274.36 3,009.58 3,091.86
2018-09-30 9,938.89 2,993.24 4,265.73
2018-06-30 9,633.41 3,024.31 3,892.96
2018-03-31 9,476.87 3,048.10 4,086.21
2017-12-31 9,667.85 3,099.23 4,359.43
2017-09-30 9,060.15 2,471.42 4,071.83
2017-06-30 9,039.21 2,485.67 4,019.63
2017-03-31 8,739.19 2,581.61 4,030.77
2016-12-31 8,541.09 2,574.53 4,074.90
2016-09-30 8,604.94 2,589.35 4,145.70
2016-06-30 8,511.77 2,602.43 4,003.43
2016-03-31 8,314.23 2,299.76 3,608.56
2015-12-31 7,903.57 2,239.27 4,272.27
2015-09-30 7,754.09 2,240.52 4,585.18
2015-06-30 7,801.77 2,246.88 4,038.19
2015-03-31 7,932.51 2,249.55 3,689.96
2014-12-31 7,663.05 2,253.59 3,555.02
2014-09-30 7,240.62 2,273.80 3,452.28
2014-06-30 7,207.14 2,258.52 3,693.74
2014-03-31 6,961.10 2,255.82 3,499.65
2013-12-31 6,750.19 2,256.23 3,430.81
2013-09-30 6,533.83 2,250.48 3,274.78
2013-06-30 6,400.71 2,249.82 2,698.32
2013-03-31 4,230.92 1,732.25 2,279.39
2012-12-31 3,975.24 1,492.55 1,837.10
2012-09-30 3,893.66 1,510.60 1,563.87
2012-06-30 3,742.90 1,309.53 1,302.94
  • Markel's level of debt (30.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (32.4% vs 30.7% today).
  • Debt is well covered by operating cash flow (27.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6x coverage).
X
Financial health checks
We assess Markel's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Markel has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Markel dividends.
If you bought $2,000 of Markel shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Markel's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Markel's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MKL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Insurance Industry Average Dividend Yield Market Cap Weighted Average of 80 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MKL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Markel has not reported any payouts.
  • Unable to verify if Markel's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Markel's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Markel has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Markel's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Markel afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Markel has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richie Whitt
COMPENSATION $3,706,761
AGE 54
TENURE AS CEO 3.4 years
CEO Bio

Mr. Richard Reeves Whitt III, also known as Richie, has been a Co-Chief Executive Officer of Markel Corp. since January 1, 2016. Mr. Whitt serves on the board of the World Affairs Council of Richmond and the Virginia Foundation for Independent Colleges Board. Mr. Whitt served as the President and Chief Operating Officer of Markel Corp. from 2010 to January 1, 2016. He joined the Markel Corp in 1991. Mr. Whitt served as the Executive Vice President and Chief Administrative Officer at Markel International. He has been employed at Markel International since September 1, 2003. Mr. Whitt began his business career at KPMG in Richmond Markel Corporation markets. He has been a Director of Markel Corp. since August 30, 2016. He serves as a Director of Markel-Gayner Asset Management Corporation since March, 2006.

CEO Compensation
  • Richie's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Richie's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Markel management team in years:

2.4
Average Tenure
57.5
Average Age
  • The tenure for the Markel management team is about average.
Management Team

Alan Kirshner

TITLE
Executive Chairman
COMPENSATION
$1M
AGE
82

Richie Whitt

TITLE
Co-CEO & Director
COMPENSATION
$4M
AGE
54
TENURE
3.4 yrs

Tom Gayner

TITLE
Co-CEO & Director
COMPENSATION
$4M
AGE
57
TENURE
3.4 yrs

Brad Kiscaden

TITLE
President & Chief Administrative Officer
COMPENSATION
$2M
AGE
55
TENURE
0.8 yrs

Bob Cox

TITLE
President & COO
COMPENSATION
$2M
AGE
60
TENURE
0.8 yrs

Jeremy Noble

TITLE
Senior VP & CFO
COMPENSATION
$1M
AGE
42
TENURE
0.8 yrs

Linda Schreiner

TITLE
Senior Vice President of Strategic Management
COMPENSATION
$1M
AGE
58
TENURE
3.4 yrs

Saurabh Madaan

TITLE
Managing Director of Investments
TENURE
1.4 yrs

Nora Crouch

TITLE
Chief Accounting Officer & Controller
AGE
58
TENURE
9.1 yrs

Bruce Kay

TITLE
Managing Director - Investor Relations
Board of Directors Tenure

Average tenure and age of the Markel board of directors in years:

9.7
Average Tenure
70.5
Average Age
  • The tenure for the Markel board of directors is about average.
Board of Directors

Alan Kirshner

TITLE
Executive Chairman
COMPENSATION
$1M
AGE
82
TENURE
32.8 yrs

Richie Whitt

TITLE
Co-CEO & Director
COMPENSATION
$4M
AGE
54
TENURE
2.8 yrs

Tom Gayner

TITLE
Co-CEO & Director
COMPENSATION
$4M
AGE
57
TENURE
2.8 yrs

Steve Markel

TITLE
Vice Chairman
COMPENSATION
$1M
AGE
69
TENURE
27.3 yrs

Tony Markel

TITLE
Vice Chairman
COMPENSATION
$690K
AGE
76
TENURE
11.1 yrs

Lem Lewis

TITLE
Director
COMPENSATION
$244K
AGE
71
TENURE
12.3 yrs

Debora Wilson

TITLE
Director
COMPENSATION
$233K
AGE
61
TENURE
9.7 yrs

Stewart Kasen

TITLE
Lead Director
COMPENSATION
$255K
AGE
78
TENURE
8.1 yrs

Darrell Martin

TITLE
Director
COMPENSATION
$234K
AGE
70
TENURE
9.7 yrs

Michael O'Reilly

TITLE
Director
COMPENSATION
$244K
AGE
74
TENURE
6.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Markel insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. May 19 Buy Lemuel Lewis Individual 14. May 19 14. May 19 100 $1,035.00 $103,500
06. May 19 Sell Anthony Markel Individual 03. May 19 03. May 19 -43 $1,060.66 $-45,609
18. Mar 19 Buy Lemuel Lewis Individual 15. Mar 19 15. Mar 19 100 $1,013.00 $101,300
11. Mar 19 Buy K. Connell Individual 07. Mar 19 07. Mar 19 200 $968.78 $193,756
07. Mar 19 Sell Nora Crouch Individual 06. Mar 19 06. Mar 19 -50 $985.27 $-49,263
16. Nov 18 Buy Lemuel Lewis Individual 15. Nov 18 15. Nov 18 250 $1,096.50 $274,125
06. Nov 18 Sell Anthony Markel Individual 05. Nov 18 05. Nov 18 -149 $1,090.00 $-162,410
06. Nov 18 Buy Nora Crouch Individual 05. Nov 18 05. Nov 18 9 $1,099.26 $9,893
07. Sep 18 Sell Richard Whitt Individual 05. Sep 18 05. Sep 18 -500 $1,202.81 $-601,398
X
Management checks
We assess Markel's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Markel has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

At US$1,081, Is It Time To Put Markel Corporation (NYSE:MKL) On Your Watch List?

The company's shares saw a decent share price growth in the teens level on the NYSE over the last few months. … NYSE:MKL Past and Future Earnings, June 5th 2019 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

Should We Worry About Markel Corporation's (NYSE:MKL) P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Markel Corporation's (NYSE:MKL) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

How Should Investors Feel About Markel Corporation's (NYSE:MKL) CEO Pay?

First, this article will compare CEO compensation with compensation at other large companies. … How Does Tom Gayner's Compensation Compare With Similar Sized Companies. … Our data indicates that Markel Corporation is worth US$14b, and total annual CEO compensation is US$3.7m.

Simply Wall St -

Markel Shareholders Booked A 70% Gain In The Last Five Years

Markel Corporation (NYSE:MKL) shareholders might be concerned after seeing the share price drop 13% in the last quarter. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … This EPS growth is slower than the share price growth of 11% per year, over the same period.

Simply Wall St -

What Kind Of Shareholders Own Markel Corporation (NYSE:MKL)?

Markel is a pretty big company. … Normally institutions would own a significant portion of a company this size. … Our analysis of the ownership of the company, below, shows that.

Simply Wall St -

Can Markel Corporation (NYSE:MKL) Save Your Portfolio?

Today I want to bring to light the market's darling - Markel Corporation. … Looking at its size, financial health and track record, I believe there's an opportunity with Markel during these volatile times. … Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, the United Kingdom, Canada, and internationally

Simply Wall St -

Have Insiders Been Selling Markel Corporation (NYSE:MKL) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Markel Corporation (NYSE:MKL). … That means that an insider was selling shares at around the current price of US$1,136. … Over the last year we saw more insider selling of Markel shares, than buying

Simply Wall St -

Is Markel Corporation's (NYSE:MKL) 11% ROE Strong Compared To Its Industry?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Markel has a return on equity of 11% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why Markel Corporation's (NYSE:MKL) High P/E Ratio Isn't Necessarily A Bad Thing

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll show how you can use Markel Corporation's (NYSE:MKL) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Markel Corporation's (NYSE:MKL) CEO Paid Enough To Stay Motivated?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … At the time of writing our data says that Markel Corporation has a market cap of US$15.3b, and is paying total annual CEO compensation of US$3m. … We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m.

Simply Wall St -

Company Info

Description

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.

Details
Name: Markel Corporation
MKL
Exchange: NYSE
Founded: 1930
$14,922,271,073
13,845,763
Website: http://www.markelcorp.com
Address: Markel Corporation
4521 Highwoods Parkway,
Glen Allen,
Virginia, 23060,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MKL Common Shares New York Stock Exchange US USD 12. Dec 1986
DB MKV Common Shares Deutsche Boerse AG DE EUR 12. Dec 1986
LSE 0JYM Common Shares London Stock Exchange GB USD 12. Dec 1986
BMV MKL * Common Shares Bolsa Mexicana de Valores MX MXN 12. Dec 1986
BOVESPA MKLC34 BDR EACH 1 REP 0.05 COM NPV Bolsa de Valores de Sao Paulo BR BRL 02. May 2019
Number of employees
Current staff
Staff numbers
17,400
Markel employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 23:39
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/05/30
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.