Markel (MKL) AI Stock Analysis

• Market Cap: $25.30B
• Dividend Yield: N/A
• Average Volume (3M): 52.13K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.44
• Revenue Growth: -6.46%
• EPS Growth: -26.71%
• Country: US
• Employees: 22,000
• Sector: Financial
• Sector Strength: 81
• Industry: Insurance - Property & Casualty
• EPS (TTM): 23.13
• Shares Outstanding: 12,684,687
• 10 Day Avg. Volume: 44,697
• 30 Day Avg. Volume: 52,127
• PEG Ratio: -0.42
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.75
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 1.96
• Enterprise Value/Ebitda: 1.44
• 1Y Price Target: $1,836.00
• Price Target Upside: -7.14% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: ―

Markel's robust financial performance, marked by strong revenue growth and profitability, is a key strength. However, uncertainties in cash flow data and a mixed earnings call outlook moderate the overall score. The company's valuation is attractive due to a low P/E ratio, but technical indicators suggest a cautious approach in the near term.

Markel Business Overview & Revenue Model

Company Description

Markel Corporation, commonly referred to as Markel, is a diverse financial holding company headquartered in Glen Allen, Virginia. The company operates primarily through three segments: Insurance, Reinsurance, and Investments. Markel is recognized for its specialty insurance products, which cater to niche markets and unusual risks that are often underserved by larger insurers. Additionally, the company engages in a range of investment activities through its Markel Ventures subsidiary, which includes controlling interests in various industrial and service businesses.

How the Company Makes Money

Markel Corporation generates revenue through its diversified operations, primarily in insurance and investments. The insurance segment is a major source of income, offering specialty insurance products and services tailored for unique risks and niche markets. Premiums collected from policyholders are a primary revenue stream. In the reinsurance segment, Markel earns income by providing insurance to other insurance companies, covering large or complex risks. A significant portion of the company's earnings also comes from its investment portfolio, where it strategically invests the premiums collected in various financial instruments, including equities, fixed-income securities, and alternative investments. Through Markel Ventures, the company further diversifies its income by holding controlling interests in a variety of businesses across industrial and service sectors, generating returns from their operations. Partnerships with other insurance and reinsurance companies, as well as strategic acquisitions, also contribute to Markel's revenue growth and market presence.

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	15.56B	16.75B	15.71B	11.81B	12.92B	9.64B
Gross Profit	10.54B	11.70B	10.39B	5.71B	7.92B	4.94B
EBITDA	2.85B	4.18B	3.16B	353.94M	3.65B	1.49B
Net Income	1.84B	2.75B	2.00B	-216.28M	2.42B	816.03M
Balance Sheet
Total Assets	64.60B	61.90B	55.05B	63.44B	48.48B	41.71B
Cash, Cash Equivalents and Short-Term Investments	20.95B	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	46.85B	44.43B	39.52B	25.54B	24.18B	21.21B
Stockholders Equity	17.15B	16.92B	14.98B	13.07B	14.70B	12.80B
Cash Flow
Free Cash Flow	2.12B	2.34B	2.53B	2.45B	2.13B	1.64B
Operating Cash Flow	2.34B	2.59B	2.79B	2.71B	2.27B	1.74B
Investing Cash Flow	-1.69B	-2.40B	-2.70B	-1.67B	-2.94B	-511.75M
Financing Cash Flow	-254.45M	-297.88M	-999.72M	-595.31M	369.77M	434.56M

Markel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1977.20
• 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 1977.2 is above the 20-day moving average (MA) of 1975.51, above the 50-day MA of 1931.08, and above the 200-day MA of 1790.86, indicating a bullish trend. The MACD of 18.48 indicates Positive momentum. The RSI at 53.17 is Neutral, neither overbought nor oversold. The STOCH value of 62.15 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	82 Outperform	$26.23B	16.03	20.73%	3.43%	11.39%	14.76%
MKL	73 Outperform	$25.30B	14.57	10.94%	―	-6.46%	-26.71%
RLI	72 Outperform	$6.49B	23.27	17.99%	0.90%	9.18%	-16.06%
CINF	71 Outperform	$23.11B	16.13	10.97%	2.35%	2.44%	-38.76%
CNA	68 Neutral	$11.89B	13.39	8.98%	4.18%	6.34%	-28.19%
AFG	66 Neutral	$10.67B	13.42	18.51%	7.51%	3.76%	-9.12%
Sector *	58 Neutral	HK$90.99B	5.20	-3.21%	5.31%	7.36%	-55.21%

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.

The most recent analyst rating on (MKL) stock is a Hold with a $2000.00 price target. To see the full list of analyst forecasts on Markel stock, see the MKL Stock Forecast page.

Markel Unveils Strategic Changes at Omaha Brunch

On May 4, 2025, Markel Group Inc. presented recent changes in its core insurance business at the 2025 Markel Group Omaha Brunch, aiming to inform investors and stakeholders about its strategic developments.

Markel Announces New Divisional Structure and Leadership

On April 22, 2025, Markel Insurance announced a new divisional structure for its U.S. and Bermuda operations, along with leadership appointments, following Simon Wilson’s appointment as CEO in March. The restructuring aims to simplify and grow the business by empowering local teams, splitting operations into two divisions: US Wholesale and Specialty, led by Wendy Houser, and Programs and Solutions, led by Alex Martin. Additional leadership changes include Andrew McMellin as President, International, Glenn Harris as Chief Commercial Officer, and Henry Gardener as Chief Risk Officer, positioning Markel to enhance its market focus and stakeholder engagement.