NYSE:MKL

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

Acceptable track record and slightly overvalued.


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

13.7%

MKL

14.9%

US Insurance

10.5%

US Market


1 Year Return

-10.4%

MKL

-19.4%

US Insurance

-11.5%

US Market

Return vs Industry: MKL exceeded the US Insurance industry which returned -19.4% over the past year.

Return vs Market: MKL exceeded the US Market which returned -11.5% over the past year.


Shareholder returns

MKLIndustryMarket
7 Day13.7%14.9%10.5%
30 Day-27.2%-24.0%-15.4%
90 Day-20.5%-28.5%-21.4%
1 Year-10.4%-10.4%-17.4%-19.4%-9.6%-11.5%
3 Year-8.5%-8.5%-6.8%-14.1%12.6%5.4%
5 Year15.5%15.5%17.8%3.5%32.8%18.1%

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?

6.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MKL ($892.43) is trading above our estimate of fair value ($666.08)

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 (6.9x) compared to the Insurance industry average (9x).

PE vs Market: MKL is good value based on its PE Ratio (6.9x) compared to the US market (13x).


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 (1.1x) compared to the US Insurance industry average (0.8x).


Next Steps

Future Growth

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

-55.7%

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 (-55.7% per year).

Earnings vs Market: MKL's earnings are forecast to decline over the next 3 years (-55.7% per year).

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

Revenue vs Market: MKL's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: MKL's revenue is forecast to decline over the next 3 years (-1.2% 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?

14.5%

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 by 14.5% 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 (43.7%).


Return on Equity

High ROE: MKL's Return on Equity (16%) is considered low.


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: MKL has a low level of unsold assets or inventory.

Debt Coverage by Assets: MKL's debt is covered by short term assets (assets are 3.9x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: Insufficient data to determine if MKL 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

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

High Dividend: Unable to evaluate MKL'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 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?

3.2yrs

Average management tenure


CEO

Tom Gayner (58yo)

4.17s

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 ($USD4.83M) is below average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alan Kirshner
Executive Chairman33.5yrsUS$1.47m0.16% $20.6m
Thomas Gayner
Co-CEO & Director4.17yrsUS$4.83m0.18% $24.0m
Richard Whitt
Co-CEO & Director3.58yrsUS$4.83m0.052% $6.8m
Bradley Kiscaden
President & Chief Administrative Officer of Insurance Operations1.5yrsUS$2.57m0.037% $4.9m
Robert Cox
President & COO of Insurance Operations1.5yrsUS$2.57m0.0011% $150.6k
Jeremy Noble
Senior VP & CFO1.5yrsUS$1.44m0.0044% $582.9k
Linda Schreiner
Senior Vice President of Strategic Management4.17yrsUS$1.25m0.0072% $944.4k
Saurabh Madaan
Managing Director of Investments2.17yrsno datano data
Nora Crouch
Chief Accounting Officer & Controller9.83yrsno data0.017% $2.2m
Bruce Kay
Managing Director - Investor Relationsno datano datano data

3.2yrs

Average Tenure

58.5yo

Average Age

Experienced Management: MKL's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alan Kirshner
Executive Chairman33.5yrsUS$1.47m0.16% $20.6m
Thomas Gayner
Co-CEO & Director4.17yrsUS$4.83m0.18% $24.0m
Richard Whitt
Co-CEO & Director3.58yrsUS$4.83m0.052% $6.8m
Michael O'Reilly
Independent Director6.83yrsUS$243.17k0.018% $2.3m
Steven Markel
Vice Chairman28yrsUS$1.24m0.77% $101.2m
Darrell Martin
Independent Director10.42yrsUS$235.16k0.13% $17.4m
Anthony Markel
Vice Chairman11.83yrsUS$689.67k0.65% $85.3m
Stewart Kasen
Lead Director8.83yrsUS$257.16k0.042% $5.5m
Debora Wilson
Independent Director10.42yrsUS$243.17k0.028% $3.7m
Lemuel Lewis
Independent Director13.08yrsUS$243.17k0.038% $5.0m

10.4yrs

Average Tenure

71.5yo

Average Age

Experienced Board: MKL's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MKL insiders have only sold shares 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$13.099b
  • 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 offers general and professional liability, personal lines, marine and energy, specialty programs, and workers' compensation insurance products; and property coverages that consist principally of fire, allied lines, and other specialized property coverages, including catastrophe-exposed property risks, such as earthquake and wind. This segment also offers credit and surety products, and collateral protection insurance. The company’s Reinsurance segment offers general liability, professional liability, workers' compensation, medical malpractice, and environmental impairment 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; and laminated oak and composite wood flooring, as well as ornamental plants and residential homes. This segment also provides healthcare, consulting, and others types of services to businesses and consumers, including management and technology consulting, behavioral healthcare, and retail intelligence. The company’s Other segment operates as an insurance and investment fund manager offering a range of investment products, including insurance-linked securities, catastrophe bonds, insurance swaps, and weather derivatives; and program services. 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 Analysis2020/03/28 01:25
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.