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Markel Group Inc MKL

Morningstar Rating
$1,462.82 +9.69 (0.67%)
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Company Report

Markel Earnings: Underwriting Results Get Worse

Markel finished a difficult year on a very mixed note. Underwriting results have been the company's Achilles' heel this past year, and while that issue only got worse in the fourth quarter, strong investment results acted as an offset. Overall, we are more concerned about the poor underwriting results, as we expect the investment side to be volatile quarter to quarter and think the company's relative investing advantage may be mooted going forward if interest rates remain high. We will maintain our $1,310 fair value estimate for the no-moat company and see the shares as roughly fairly valued at the moment.

Price vs Fair Value

MKL is trading within a range we consider fairly valued.
Price
$1,462.82
Fair Value
$2,971.00
Uncertainty
Medium
1-Star Price
$6,295.80
5-Star Price
$341.00
Economic Moat
Jpc
Capital Allocation
Mzcqwlrvs

Bulls Say, Bears Say

Bulls

Markel's focus on specialty lines creates the potential for a moat.

Bears

Markel's relatively large exposure to equities makes the company much more vulnerable than peers to a bear market.

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News

Trading Information

Previous Close Price
$1,453.13
Day Range
$1,451.111,467.91
52-Week Range
$1,186.561,560.00
Bid/Ask
$1,450.00 / $1,471.00
Market Cap
$19.21 Bil
Volume/Avg
38,392 / 67,200

Key Statistics

Price/Earnings (Normalized)
17.79
Price/Sales
1.25
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.83%

Company Profile

Markel's primary business is property and casualty insurance, and the company focuses primarily on specialty lines, ranging from areas such as executive liability to commercial equine insurance. The acquisition of Alterra in 2013 added substantial reinsurance operations, which now account for a little less than 15% of premiums. The company uses capital generated by its insurance operations to buy noninsurance operations in diverse areas, such as bakery equipment manufacturing and residential homebuilding.
Sector
Financial Services
Industry
Insurance - Property & Casualty
Stock Style Box
Mid Core
Total Number of Employees
20,900

Competitors

Valuation

Metric
MKL
TRV
FFH
Price/Earnings (Normalized)
17.7925.136.53
Price/Book Value
1.981.21
Price/Sales
1.251.220.94
Price/Cash Flow
7.064.85
Price/Earnings
MKL
TRV
FFH

Financial Strength

Metric
MKL
TRV
FFH
Quick Ratio
Current Ratio
Interest Coverage
14.439.979.00
Quick Ratio
No chart available

Profitability

Metric
MKL
TRV
FFH
Return on Assets (Normalized)
4.13%2.55%2.50%
Return on Equity (Normalized)
16.33%13.79%12.48%
Return on Invested Capital (Normalized)
12.54%11.35%8.13%
Return on Assets
MKL
TRV
FFH
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Insurance - Property & Casualty Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
PGR
Progressive CorpCbgcrv$111.4 Bil
CB
Chubb LtdQmbppn$102.8 Bil
TKOMY
Tokio Marine Holdings Inc ADRBfxy$56.9 Bil
TKOMF
Tokio Marine Holdings IncQntx$56.9 Bil
TRV
The Travelers Companies IncRsgkmdw$50.3 Bil
ALL
Allstate CorpLgq$41.9 Bil
IFCZF
Intact Financial CorpFtplzls$29.8 Bil
PINXY
The People's Insurance Co (Group) of China Ltd ADRBslpn$29.2 Bil
WRB
WR Berkley CorpGwpxlg$21.4 Bil

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