Markel (MKL) AI Stock Analysis

• Market Cap: $22.76B
• Dividend Yield: N/A
• Average Volume (3M): 54.84K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.44
• Revenue Growth: 5.17%
• EPS Growth: 35.36%
• Country: US
• Employees: 22,000
• Sector: Financial
• Sector Strength: 86
• Industry: Insurance - Property & Casualty
• EPS (TTM): 199.04
• Shares Outstanding: 12,711,262
• 10 Day Avg. Volume: 56,479
• 30 Day Avg. Volume: 54,835
• PEG Ratio: 0.25
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.41
• Price to Cash Flow (P/CF): 11.90
• P/FCF Ratio: 11.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1,947.75
• Price Target Upside: 9.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Markel demonstrates strong financial performance with robust revenue growth and improved profitability. Technical analysis shows stable price trends with balanced market sentiment. The stock is potentially undervalued with a low P/E ratio. Earnings call insights highlight operational strengths and challenges, contributing to a balanced outlook.

Markel Business Overview & Revenue Model

Company Description

Markel Corporation (MKL) is a diverse financial holding company headquartered in the United States, operating primarily in the insurance sector while also engaging in investment operations and ventures. The company is known for offering specialty insurance products across various market segments, including excess and surplus lines, reinsurance, and more niche markets such as equine and livestock insurance. Beyond insurance, Markel is involved in a range of other industries through its investment portfolio and through Markel Ventures, which acquires controlling interests in various businesses outside of the insurance industry.

How the Company Makes Money

Markel Corporation generates revenue primarily through its insurance operations, which include underwriting a wide array of specialty insurance products. The company earns premiums from policyholders in exchange for providing insurance coverage. In addition to underwriting profits, Markel invests the premiums it collects, aiming to generate investment income. The company's investment portfolio includes fixed income securities, equities, and other financial instruments. Furthermore, Markel Ventures contributes to the company's revenue by owning and operating a diverse group of businesses across different sectors such as manufacturing, transportation, and consumer and business services. These ventures provide additional income streams and help diversify Markel's earnings beyond its core insurance operations.

Markel Financial Statement Overview

Summary

Markel shows strong revenue and profit margin growth, with a robust balance sheet marked by low leverage. However, incomplete 2024 cash flow data introduces some uncertainty.

Income Statement

Markel has shown strong revenue growth over the years, with a significant jump in total revenue from $15.8 billion in 2023 to $16.6 billion in 2024. The gross profit margin remains robust, indicating efficient cost management. The net profit margin has improved from 12.6% in 2023 to 26.6% in 2024, reflecting better profitability. EBIT and EBITDA margins are also strong, underscoring operational efficiency. However, fluctuations in EBIT in earlier years highlight potential volatility.

Balance Sheet

Markel's balance sheet reflects a solid equity position with stockholders' equity increasing to $17.7 billion in 2024. The debt-to-equity ratio is low, indicating prudent financial leverage. ROE has improved significantly, showcasing enhanced profitability for shareholders. However, the absence of total assets data in 2024 restricts a comprehensive analysis of the equity ratio.

Cash Flow

While Markel has historically maintained positive free cash flow, the absence of detailed cash flow data for 2024 limits a thorough analysis. The company demonstrated a strong operating cash flow to net income ratio in prior years, indicating good cash generation capability. However, fluctuations in free cash flow growth rates suggest potential volatility in cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.62B	15.80B	11.82B	12.92B	9.64B
	Gross Profit
16.62B	15.62B	11.64B	12.76B	9.48B
	EBIT
3.71B	2.93B	878.63M	-880.80M	-2.15B
	EBITDA
3.84B	2.93B	411.45M	3.65B	1.49B
	Net Income Common Stockholders
2.75B	2.00B	-101.20M	2.42B	816.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.56B	10.21B	18.66B	18.37B	17.06B
	Total Assets
61.90B	55.05B	63.44B	48.48B	41.71B
	Total Debt
4.33B	3.78B	4.10B	4.36B	3.48B
	Net Debt
637.67M	32.74M	-33.80M	382.78M	-857.71M
	Total Liabilities
44.43B	39.52B	25.54B	24.18B	21.21B
	Stockholders Equity
16.92B	14.98B	13.07B	14.70B	12.80B
Cash Flow		Free Cash Flow
2.34B	2.53B	2.45B	2.13B	1.64B
	Operating Cash Flow
2.59B	2.79B	2.71B	2.27B	1.74B
	Investing Cash Flow
-2.40B	-2.70B	-1.67B	-2.94B	-511.75M
	Financing Cash Flow
-297.88M	-999.72M	-595.31M	369.77M	434.56M

Markel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1771.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKL, the sentiment is Negative. The current price of 1771.42 is below the 20-day moving average (MA) of 1820.76, below the 50-day MA of 1859.15, and above the 200-day MA of 1687.25, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 49.97 is Neutral, neither overbought nor oversold. The STOCH value of 56.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MKL.

Markel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CINF	82 Outperform	$21.08B	9.27	17.61%	2.45%	13.22%	24.83%
CNA	78 Outperform	$12.98B	13.66	9.40%	3.73%	7.30%	-20.49%
MKL	77 Outperform	$22.76B	8.86	16.52%	―	5.17%	35.36%
WRB	76 Outperform	$25.38B	15.37	22.16%	0.48%	12.32%	29.21%
AFG	75 Outperform	$10.45B	11.82	20.33%	2.42%	6.91%	4.97%
RLI	75 Outperform	$7.01B	20.41	23.56%	0.77%	18.31%	13.13%
Sector *	64 Neutral	$13.21B	9.26	9.39%	4.87%	16.14%	-8.87%

Markel Corporate Events

Markel Announces Leadership Transition with New Board Appointment

On March 17, 2025, Markel Group Inc. announced that Anthony F. Markel will retire as Vice Chairman and director after the company’s annual meeting on May 21, 2025, transitioning to the honorary role of Chairman Emeritus. Simultaneously, Jonathan E. Michael, a seasoned leader in the specialty insurance industry, was appointed to the Board of Directors effective March 15, 2025. This leadership change marks a significant transition for Markel, with Mr. Michael expected to bring valuable expertise to the company’s ongoing growth and strategic initiatives.

Markel Appoints Simon Wilson as New Insurance CEO

On March 17, 2025, Markel Group Inc. announced a leadership transition in its insurance underwriting operations, appointing Simon Wilson as CEO of Markel Insurance, effective immediately. This change is part of a strategic effort to enhance customer focus and streamline operations, following a board-led review that identified complexity challenges. Jeremy Noble, the former President of Insurance, will depart on April 13, 2025. The transition aims to empower teams to better serve distinct market needs, with Wilson bringing extensive experience in scaling specialty insurance operations.

Markel Highlights Strong 2024 Financial Performance

On February 24, 2025, Markel Group Inc. released its 2024 Letter to Shareholders, highlighting the company’s growth in intrinsic value per share and its financial performance. The letter, written by CEO Thomas S. Gayner, underscores Markel’s commitment to long-term principles and shareholder alignment, reflecting on its strong financial results and the importance of maintaining a stable and conservative balance sheet. The company reported significant increases in total operating revenues and comprehensive income to shareholders, indicating robust financial health and strategic positioning in the market.

Markel Increases CFO’s Equity Award Target

On February 18, 2025, the Compensation Committee of Markel Group Inc. approved a change in executive compensation for CFO Brian J. Costanzo, increasing his equity award target from 125% to 175% of his base salary. For the 2025 performance year, the equity awards will be split into 75% performance-based and 25% service-based, with metrics including operating income and stock price growth over five years, reflecting a strategic emphasis on aligning executive rewards with long-term company performance.