Markel has built a reputation as a “mini-Berkshire,” and while we think it is a solid franchise, we believe the premium the market has at times awarded the company based on this narrative is not fully justified. However, the company is coming off a bad run of underwriting and investment results, and we think this premium has disappeared.
Markel's focus on specialty lines creates the potential for a moat.
Markel's relatively large exposure to equities makes the company much more vulnerable than peers to a bear market and reduces the upside from higher interest rates.
|
Metric
|
MKL
|
FFH
|
WRB
|
|---|---|---|---|
Price/Earnings (Normalized) | 17.56 | 8.82 | 15.49 |
Price/Book Value | 1.22 | 1.44 | 2.87 |
Price/Sales | 1.41 | 1.36 | 1.97 |
Price/Cash Flow | 10.12 | — | 15.73 |
|
Metric
|
MKL
|
FFH
|
WRB
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | 15.52 | 8.40 | 20.01 |
|
Metric
|
MKL
|
FFH
|
WRB
|
|---|---|---|---|
Return on Assets (Normalized) | 3.39% | 4.84% | 4.31% |
Return on Equity (Normalized) | 12.77% | 20.69% | 19.65% |
Return on Invested Capital (Normalized) | 10.78% | 13.11% | 15.96% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
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United States