NYSE:MKL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$16.6b

Last Updated

2021/08/03 23:37 UTC

Data Sources

Company Financials +

Executive Summary

Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, Bermuda, the United Kingdom, rest of Europe, Canada, Latin America, the Asia Pacific, and the Middle East. More Details


Snowflake Analysis

Excellent balance sheet with proven track record.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MKL's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

MKL

0.8%

US Insurance

0.9%

US Market


1 Year Return

15.7%

MKL

33.3%

US Insurance

34.7%

US Market

Return vs Industry: MKL underperformed the US Insurance industry which returned 31% over the past year.

Return vs Market: MKL underperformed the US Market which returned 34.4% over the past year.


Shareholder returns

MKLIndustryMarket
7 Day-0.8%0.8%0.9%
30 Day-1.0%-0.4%0.2%
90 Day1.8%-3.0%4.7%
1 Year15.7%15.7%36.6%33.3%36.8%34.7%
3 Year2.1%2.1%35.7%25.6%62.5%52.4%
5 Year28.4%28.4%76.0%54.2%123.1%98.4%

Long-Term 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?

6.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MKL ($1206.5) is trading above our estimate of fair value ($1193.87)

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


Price To Earnings Ratio

PE vs Industry: MKL is good value based on its PE Ratio (6.1x) compared to the US Insurance industry average (10.7x).

PE vs Market: MKL is good value based on its PE Ratio (6.1x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MKL is overvalued based on its PB Ratio (1.3x) compared to the US Insurance industry average (1.2x).


Future Growth

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

-16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKL's earnings are forecast to decline over the next 3 years (-16.7% per year).

Earnings vs Market: MKL's earnings are forecast to decline over the next 3 years (-16.7% per year).

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

Revenue vs Market: MKL's revenue (2.9% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: MKL's revenue (2.9% 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 (7.2%).


Past Performance

How has Markel performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MKL has high quality earnings.

Growing Profit Margin: MKL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MKL's earnings have grown significantly by 24.1% per year over the past 5 years.

Accelerating Growth: MKL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MKL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (70.4%).


Return on Equity

High ROE: MKL's Return on Equity (21%) is considered high.


Financial Health

How is Markel's financial position?


Financial Position Analysis

Short Term Liabilities: MKL's short term assets ($17.2B) exceed its short term liabilities ($5.4B).

Long Term Liabilities: MKL's short term assets ($17.2B) do not cover its long term liabilities ($24.2B).


Debt to Equity History and Analysis

Debt Level: MKL's debt to equity ratio (22.4%) is considered satisfactory.

Reducing Debt: MKL's debt to equity ratio has reduced from 27.7% to 22.4% over the past 5 years.

Debt Coverage: MKL's debt is well covered by operating cash flow (66.3%).

Interest Coverage: MKL's interest payments on its debt are well covered by EBIT (21.9x coverage).


Balance Sheet


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?

2.9yrs

Average management tenure


CEO

Tom Gayner (60 yo)

5.58yrs

Tenure

US$4,183,420

Compensation

Mr. Thomas Sinnickson Gayner, also known as Tom, serves as Co-Chief Executive Officer at Markel Corporation since January 1, 2016. Mr. Gayner serves as the Co-Chief Executive Officer at Markel Ventures, In...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD4.18M) is below average for companies of similar size in the US market ($USD11.16M).

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


Leadership Team

Experienced Management: MKL's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: MKL's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: MKL 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$16.599b
  • Shares outstanding: 13.76m
  • Website: https://www.markel.com

Number of Employees


Location

  • Markel Corporation
  • 4521 Highwoods Parkway
  • Glen Allen
  • Virginia
  • 23060-6148
  • United States

Listings


Biography

Markel Corporation, a diverse financial holding company, markets and underwrites specialty insurance products in the United States, Bermuda, the United Kingdom, rest of Europe, Canada, Latin America, the A...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 23:37
End of Day Share Price2021/08/03 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.