Markel (MKL) AI Stock Analysis

• Market Cap: $24.74B
• Dividend Yield: N/A
• Average Volume (3M): 42.87K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.47
• Revenue Growth: 1.66%
• EPS Growth: 8.51%
• Country: US
• Employees: 22,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 25.61
• Shares Outstanding: 12,652,001
• 10 Day Avg. Volume: 40,473
• 30 Day Avg. Volume: 42,872
• PEG Ratio: 0.23
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 9.61
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 2.71
• Enterprise Value/Ebitda: 9.05
• 1Y Price Target: $2,003.33
• Price Target Upside: 1.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: $2,174.00 ▲(10.25% Upside)

Markel's strong financial performance and strategic initiatives highlighted in the earnings call are the primary drivers of its score. The company's valuation is attractive, though technical indicators suggest caution. Challenges in the insurance segment and incomplete cash flow data introduce some risk.

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 and reinsurance operations, where it earns premium income from policyholders. This income is supplemented by investment revenue derived from its diversified investment portfolio, which includes equities, fixed income, and alternative investments. Key revenue streams include underwriting premiums collected from various specialty insurance products, as well as income from the investment of those premiums until claims are paid. Additionally, Markel benefits from its strong relationships with brokers and agents, which help in acquiring a steady flow of business. The company's disciplined underwriting practices and risk selection processes play a crucial role in maintaining profitability, while its investment strategy seeks to maximize returns on the capital held for future claims.

Markel Financial Statement Overview

Summary

Markel exhibits strong revenue growth and profitability with a solid equity position and low leverage. However, incomplete cash flow data for 2024 introduces some uncertainty, particularly in cash management.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.26B	16.75B	15.71B	11.81B	12.92B	9.64B
Gross Profit	11.18B	11.70B	10.39B	5.71B	7.92B	4.94B
EBITDA	3.35B	4.18B	3.16B	353.94M	3.65B	1.49B
Net Income	2.23B	2.75B	2.00B	-216.28M	2.42B	816.03M
Balance Sheet
Total Assets	66.79B	61.90B	55.05B	63.44B	48.48B	41.71B
Cash, Cash Equivalents and Short-Term Investments	21.07B	10.56B	10.21B	18.66B	18.37B	17.06B
Total Debt	0.00	4.33B	3.78B	4.10B	4.36B	3.48B
Total Liabilities	48.92B	44.43B	39.52B	25.54B	24.18B	21.21B
Stockholders Equity	17.32B	16.92B	14.98B	13.07B	14.70B	12.80B
Cash Flow
Free Cash Flow	2.05B	2.34B	2.53B	2.45B	2.13B	1.64B
Operating Cash Flow	2.27B	2.59B	2.79B	2.71B	2.27B	1.74B
Investing Cash Flow	-756.93M	-2.40B	-2.70B	-1.67B	-2.94B	-511.75M
Financing Cash Flow	-1.48B	-297.88M	-999.72M	-595.31M	369.77M	434.56M

Markel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1971.84
• 50DMA: Negative
• 100DMA: Positive
• 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 Positive. The current price of 1971.84 is above the 20-day moving average (MA) of 1959.07, below the 50-day MA of 1972.55, and above the 200-day MA of 1847.33, indicating a neutral trend. The MACD of -9.66 indicates Negative momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 68.59 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
WRB	83 Outperform	$26.74B	16.05	20.63%	2.21%	11.41%	15.32%
RLI	76 Outperform	$6.14B	19.11	19.49%	3.83%	10.29%	-4.70%
CINF	74 Outperform	$23.42B	12.99	13.44%	2.21%	9.64%	-15.08%
CNA	74 Outperform	$12.78B	14.67	8.54%	7.81%	6.12%	-31.43%
AFG	73 Outperform	$10.87B	14.31	17.17%	6.86%	3.35%	-14.16%
MKL	72 Outperform	$24.74B	11.83	13.23%	―	1.66%	8.51%
Sector *	68 Neutral	$17.52B	11.72	10.43%	3.85%	9.75%	2.39%

Markel Corporate Events

Markel Shareholders Approve Key Proposals at Annual Meeting

At the 2025 Annual Meeting of Shareholders held on May 21, 2025, Markel Group Inc. shareholders elected directors to the Board, approved executive compensation, ratified KPMG LLP as the independent auditor, rejected a proposal for a greenhouse gas emissions report, and approved a proposal for a simple majority vote. These decisions reflect the company’s strategic focus on governance and operational transparency, with implications for its environmental policies and shareholder engagement.