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MKL

Markel NYSE:MKL Stock Report

Last Price

US$1.34k

Market Cap

US$18.2b

7D

-1.6%

1Y

10.2%

Updated

24 May, 2022

Data

Company Financials +
MKL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends0/6

MKL Stock Overview

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, the Asia Pacific, and the Middle East.

Markel Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Markel
Historical stock prices
Current Share PriceUS$1,341.66
52 Week HighUS$1,519.25
52 Week LowUS$1,155.00
Beta0.75
1 Month Change-8.40%
3 Month Change9.82%
1 Year Change10.17%
3 Year Change27.80%
5 Year Change38.57%
Change since IPO5,929.93%

Recent News & Updates

Shareholder Returns

MKLUS InsuranceUS Market
7D-1.6%-2.2%-4.0%
1Y10.2%2.5%-13.2%

Return vs Industry: MKL exceeded the US Insurance industry which returned 1% over the past year.

Return vs Market: MKL exceeded the US Market which returned -12.3% over the past year.

Price Volatility

Is MKL's price volatile compared to industry and market?
MKL volatility
MKL Average Weekly Movement3.5%
Insurance Industry Average Movement5.0%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

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.

About the Company

FoundedEmployeesCEOWebsite
193020,300Tom Gaynerhttps://www.markel.com

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, the Asia Pacific, and the Middle East. Its Insurance segment offers general and professional liability, personal lines, marine and energy, specialty programs, and workers' compensation insurance products; and property coverages that include 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 products.

Markel Fundamentals Summary

How do Markel's earnings and revenue compare to its market cap?
MKL fundamental statistics
Market CapUS$18.20b
Earnings (TTM)US$1.76b
Revenue (TTM)US$12.55b

10.3x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MKL income statement (TTM)
RevenueUS$12.55b
Cost of RevenueUS$6.03b
Gross ProfitUS$6.52b
Other ExpensesUS$4.76b
EarningsUS$1.76b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)130.05
Gross Margin51.95%
Net Profit Margin14.06%
Debt/Equity Ratio30.4%

How did MKL perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


16.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MKL ($1341.66) is trading below our estimate of fair value ($1603.33)

Significantly Below Fair Value: MKL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MKL is good value based on its Price-To-Earnings Ratio (10.3x) compared to the US Insurance industry average (11.3x).

PE vs Market: MKL is good value based on its Price-To-Earnings Ratio (10.3x) compared to the US market (15.1x).


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 Price-To-Book Ratio (1.3x) compared to the US Insurance industry average (1x).


Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-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 (6% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: MKL's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MKL's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Markel performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


44.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MKL has high quality earnings.

Growing Profit Margin: MKL's current net profit margins (14.1%) are lower than last year (22.3%).


Past Earnings Growth Analysis

Earnings Trend: MKL's earnings have grown significantly by 44.5% 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 (-35.6%) over the past year, making it difficult to compare to the Insurance industry average (-2.6%).


Return on Equity

High ROE: MKL's Return on Equity (12.5%) is considered low.


Financial Health

How is Markel's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MKL's short term assets ($19.1B) exceed its short term liabilities ($6.6B).

Long Term Liabilities: MKL's short term assets ($19.1B) do not cover its long term liabilities ($27.8B).


Debt to Equity History and Analysis

Debt Level: MKL has more cash than its total debt.

Reducing Debt: MKL's debt to equity ratio has increased from 29.5% to 30.4% over the past 5 years.

Debt Coverage: MKL's debt is well covered by operating cash flow (53.5%).

Interest Coverage: MKL's interest payments on its debt are well covered by EBIT (12.9x coverage).


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MKL has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.5yrs

Average management tenure


CEO

Tom Gayner (60 yo)

6.33yrs

Tenure

US$4,624,603

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD4.62M) is below average for companies of similar size in the US market ($USD13.26M).

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 (3.5 years average tenure).


Board Members

Experienced Board: MKL's board of directors are considered experienced (4.9 years average tenure).


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 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
  • Implied Market Cap: US$18.204b
  • Shares outstanding: 13.57m
  • Website: https://www.markel.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/24 00:00
End of Day Share Price2022/05/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.