Markel (MKL) AI Stock Analysis

• Market Cap: $27.08B
• Dividend Yield: N/A
• Average Volume (3M): 37.16K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.54
• Revenue Growth: -6.96%
• EPS Growth: -26.28%
• Country: US
• Employees: 22,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 31.27
• Shares Outstanding: 12,610,250
• 10 Day Avg. Volume: 32,300
• 30 Day Avg. Volume: 37,157
• PEG Ratio: 0.23
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 9.61
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 3.41
• Enterprise Value/Ebitda: 9.27
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 82 Outperform
• Price Target: $2,370.00 ▲(11.12% Upside)

Markel's strong financial performance, positive technical indicators, and favorable earnings call sentiment contribute to a robust overall stock score. The company's strategic initiatives and improvements in the insurance segment are significant strengths. However, challenges in revenue growth and industrial segment performance slightly temper the outlook.

Positive Factors

Strong Cash Flow Generation

Markel's robust cash flow generation supports liquidity and capital return initiatives, such as share repurchases, enhancing shareholder value.

Improvement in Insurance Segment

Improved combined ratio indicates enhanced underwriting efficiency and profitability in the insurance segment, a core business area for Markel.

Strategic Initiatives

Strategic restructuring and leadership changes are driving positive impacts, enhancing operational efficiency and long-term competitive positioning.

Negative Factors

Decline in Revenue Growth

Negative revenue growth indicates potential challenges in market expansion and sales performance, affecting long-term growth prospects.

Pressure on Industrial Segment

Declining performance in the industrial segment due to softening demand and cost pressures could impact overall profitability and diversification.

Higher Expense Ratio in Insurance

Increased expense ratio due to personnel and professional fees may pressure margins, necessitating cost control measures to maintain profitability.

Markel Business Overview & Revenue Model

Company Description

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. The company's Reinsurance segment offers transaction, healthcare, and environmental impairment liability; and specialty treaty reinsurance products comprising structured and whole turnover credit, political risk, mortgage and contract, and commercial surety reinsurance programs. Its Markel Ventures segment provides equipment used in baking systems and food processing; portable dredges; over-the-road car haulers and transportation equipment; and laminated oak and composite wood flooring, tube and tank trailers, as well as ornamental plants and residential homes, handbags, and architectural products. This segment also provides consulting, and other types of services to businesses and consumers, including distribution of exterior building products, crane rental, fire protection, and life safety services, management and technology consulting, and retail intelligence services. The company's Other segment provides healthcare, leasing and investment services, as well as operates as an insurance and investment fund manager offering a range of investment products, including insurance-linked securities, catastrophe bonds, insurance swaps, and weather derivatives; and program services. it also manages funds with third parties. Markel Corporation was founded in 1930 and is based in Glen Allen, Virginia.

How the Company Makes Money

Markel generates revenue primarily through its insurance operations, which include underwriting premiums collected from policyholders in various sectors, such as liability, workers' compensation, and property insurance. The company also earns investment income by managing a diversified portfolio of investments, including fixed-income securities, equities, and alternative investments, using the funds accumulated from insurance premiums before claims are paid out. Key revenue streams include underwriting profit, which arises when premiums exceed claims and expenses, and investment income, which is derived from the returns on its invested assets. Additionally, Markel has established significant partnerships with various brokers and agents, enhancing its distribution capabilities and market reach, further contributing to its earnings potential.

Markel Financial Statement Overview

Summary

Markel demonstrates a strong financial position with efficient cost management and solid cash flow generation. However, the decline in revenue growth and profitability margins in the TTM period suggests potential challenges in maintaining growth momentum. The company's low leverage and strong equity returns provide a stable foundation, but attention to revenue and profit growth is necessary to sustain long-term performance.

Income Statement

Markel's income statement shows a mixed performance. The company has a strong gross profit margin of 57.94% for TTM, indicating efficient cost management. However, the net profit margin has decreased to 15.45% from 16.53% in the previous year, reflecting reduced profitability. Revenue growth has been negative at -0.69% TTM, a significant drop from the previous year's growth, which could be a concern. EBIT and EBITDA margins have also decreased, indicating pressure on operating efficiency.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.24 TTM, indicating prudent leverage management. The return on equity is strong at 14.53%, although slightly lower than the previous year, showing effective use of equity to generate profits. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Markel's cash flow statement indicates a healthy cash flow position. The free cash flow growth rate is robust at 15.97% TTM, showing strong cash generation capabilities. The free cash flow to net income ratio is high at 91.60%, indicating efficient conversion of profits into cash. However, the operating cash flow to net income ratio is not available, which limits a full assessment of cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.15B	16.75B	15.71B	11.81B	12.92B	9.64B
Gross Profit	8.48B	9.27B	8.08B	3.41B	5.89B	3.38B
EBITDA	3.12B	4.18B	3.16B	353.94M	3.65B	1.49B
Net Income	2.08B	2.75B	2.00B	-216.28M	2.42B	816.03M
Balance Sheet
Total Assets	67.39B	61.90B	55.05B	49.79B	48.48B	41.71B
Cash, Cash Equivalents and Short-Term Investments	10.85B	10.56B	20.69B	18.66B	18.37B	17.06B
Total Debt	4.28B	4.33B	3.78B	4.10B	4.36B	3.48B
Total Liabilities	48.80B	44.43B	39.52B	36.05B	33.28B	28.65B
Stockholders Equity	18.04B	16.92B	14.98B	13.15B	14.72B	12.80B
Cash Flow
Free Cash Flow	2.38B	2.34B	2.53B	2.45B	2.13B	1.64B
Operating Cash Flow	2.59B	2.59B	2.79B	2.71B	2.27B	1.74B
Investing Cash Flow	-1.15B	-2.40B	-2.70B	-1.67B	-2.94B	-511.75M
Financing Cash Flow	-1.46B	-297.88M	-999.72M	-595.31M	369.77M	434.56M

Markel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2132.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKL, the sentiment is Positive. The current price of 2132.83 is below the 20-day moving average (MA) of 2155.81, above the 50-day MA of 2078.83, and above the 200-day MA of 1957.11, indicating a neutral trend. The MACD of 19.68 indicates Positive momentum. The RSI at 55.29 is Neutral, neither overbought nor oversold. The STOCH value of 41.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MKL.

Markel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKL	82 Outperform	$27.08B	13.44	11.86%	―	-6.96%	-26.28%
CNA	79 Outperform	$12.72B	12.66	9.03%	8.03%	5.41%	-23.52%
CINF	76 Outperform	$25.77B	12.13	14.53%	2.10%	-0.63%	-30.68%
L	76 Outperform	$21.80B	15.17	8.15%	0.23%	6.06%	-8.53%
WRB	73 Outperform	$26.69B	14.38	20.92%	1.88%	11.08%	22.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AFG	67 Neutral	$11.26B	13.88	16.91%	6.71%	―	-10.75%

Markel Corporate Events

Markel Reports Q3 Revenue Growth Amid Income Decline

In the third quarter of 2025, Markel Group Inc. reported a 7% increase in operating revenues and a 26% decrease in operating income, impacted by market movements in its equity portfolio. Adjusted operating income rose by 24%, highlighting improvements in underwriting profitability and net investment income. The company’s insurance segment saw an 11% increase in underwriting gross premium volume, and the combined ratio improved to 93%. The company also made significant changes to its financial reporting, including re-segmentation of businesses and expanded financial metrics, reflecting a strategic focus on transparency and operational efficiency.

The most recent analyst rating on (MKL) stock is a Buy with a $2108.00 price target. To see the full list of analyst forecasts on Markel stock, see the MKL Stock Forecast page.