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WTM

White Mountains Insurance Group NYSE:WTM Stock Report

Last Price

US$1.26k

Market Cap

US$3.7b

7D

-1.5%

1Y

7.9%

Updated

01 Jul, 2022

Data

Company Financials
WTM fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends0/6

WTM Stock Overview

White Mountains Insurance Group, Ltd., through its subsidiaries, provides insurance and other financial services in the United States.

White Mountains Insurance Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for White Mountains Insurance Group
Historical stock prices
Current Share PriceUS$1,259.14
52 Week HighUS$1,291.50
52 Week LowUS$978.51
Beta0.48
1 Month Change-0.25%
3 Month Change9.91%
1 Year Change7.91%
3 Year Change18.84%
5 Year Change46.43%
Change since IPO3,472.03%

Recent News & Updates

Shareholder Returns

WTMUS InsuranceUS Market
7D-1.5%0.7%-2.5%
1Y7.9%2.9%-21.2%

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

Return vs Market: WTM exceeded the US Market which returned -21.7% over the past year.

Price Volatility

Is WTM's price volatile compared to industry and market?
WTM volatility
WTM Average Weekly Movement3.9%
Insurance Industry Average Movement5.0%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: WTM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WTM's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19801,648George Rountreehttps://www.whitemountains.com

White Mountains Insurance Group, Ltd., through its subsidiaries, provides insurance and other financial services in the United States. The company operates through five segments: HG Global/BAM, Ark, NSM, Kudu, and Other Operations. The HG Global/BAM segment provides insurance on municipal bonds issued to finance public purposes, such as schools, utilities, and transportation facilities, as well as reinsurance protection services.

White Mountains Insurance Group Fundamentals Summary

How do White Mountains Insurance Group's earnings and revenue compare to its market cap?
WTM fundamental statistics
Market CapUS$3.71b
Earnings (TTM)-US$164.40m
Revenue (TTM)US$1.12b

3.3x

P/S Ratio

-22.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WTM income statement (TTM)
RevenueUS$1.12b
Cost of RevenueUS$653.30m
Gross ProfitUS$462.20m
Other ExpensesUS$626.60m
Earnings-US$164.40m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-55.85
Gross Margin41.43%
Net Profit Margin-14.74%
Debt/Equity Ratio18.9%

How did WTM perform over the long term?

See historical performance and comparison

Dividends

0.08%

Current Dividend Yield

-2%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is WTM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WTM?

Other financial metrics that can be useful for relative valuation.

WTM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.9x
Enterprise Value/EBITDA-63.9x
PEG Ration/a

Price to Book Ratio vs Peers

How does WTM's PB Ratio compare to its peers?

WTM PB Ratio vs Peers
The above table shows the PB ratio for WTM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average2.2x
KMPR Kemper
0.9x108.7%US$3.1b
FAF First American Financial
1.1x-4.2%US$5.8b
RLI RLI
4.6x-5.5%US$5.3b
SIGI Selective Insurance Group
2x12.7%US$5.3b
WTM White Mountains Insurance Group
1xn/aUS$3.7b

Price-To-Book vs Peers: WTM is good value based on its Price-To-Book Ratio (1x) compared to the peer average (2.2x).


Price to Earnings Ratio vs Industry

How does WTM's PE Ratio compare vs other companies in the US Insurance Industry?

Price-To-Book vs Industry: WTM is expensive based on its Price-To-Book Ratio (1x) compared to the US Insurance industry average (1x)


Price to Book Ratio vs Fair Ratio

What is WTM's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WTM PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio1x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate WTM's Price-To-Book Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of WTM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WTM ($1259.14) is trading above our estimate of fair value ($948.5)

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


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WTM's PEG Ratio to determine if it is good value.


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Future Growth

How is White Mountains Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 0 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


9.9%

Forecasted Insurance industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as White Mountains Insurance Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Take a look at our analysis of WTM’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • White Mountains Insurance Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has White Mountains Insurance Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


30.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WTM is currently unprofitable.

Growing Profit Margin: WTM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WTM is unprofitable, but has reduced losses over the past 5 years at a rate of 30.6% per year.

Accelerating Growth: Unable to compare WTM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WTM is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-2.6%).


Return on Equity

High ROE: WTM has a negative Return on Equity (-5.99%), as it is currently unprofitable.


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Financial Health

How is White Mountains Insurance Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WTM's short term assets ($2.0B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: WTM's short term assets ($2.0B) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: WTM's net debt to equity ratio (3.8%) is considered satisfactory.

Reducing Debt: WTM's debt to equity ratio has increased from 7.4% to 18.9% over the past 5 years.

Debt Coverage: WTM's debt is not well covered by operating cash flow (13%).

Interest Coverage: Insufficient data to determine if WTM's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

What is White Mountains Insurance Group 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


0.079%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WTM's dividend (0.079%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.61%).

High Dividend: WTM's dividend (0.079%) is low compared to the top 25% of dividend payers in the US market (4.3%).


Stability and Growth of Payments

Stable Dividend: WTM is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: WTM is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: WTM is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: WTM is not paying a notable dividend for the US market.


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Management

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

1.1yrs

Average management tenure


CEO

George Rountree (50 yo)

5.25yrs

Tenure

US$7,185,569

Compensation

Mr. George Manning Rountree serves as the Chairman of the Board at Build America Mutual Assurance Company since 2020. Mr. Rountree has been the Chief Executive Officer of White Mountains Insurance Group, L...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD7.19M) is about average for companies of similar size in the US market ($USD6.90M).

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


Leadership Team

Experienced Management: WTM's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: WTM's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WTM 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

White Mountains Insurance Group, Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: White Mountains Insurance Group, Ltd.
  • Ticker: WTM
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Implied Market Cap: US$3.706b
  • Shares outstanding: 2.94m
  • Website: https://www.whitemountains.com

Number of Employees


Location

  • White Mountains Insurance Group, Ltd.
  • A.S. Cooper Building
  • Suite 601
  • Hamilton
  • HM 11
  • Bermuda

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/01 00:00
End of Day Share Price2022/07/01 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.