White Mountains Insurance Group (WTM) AI Stock Analysis

• Market Cap: $4.81B
• Dividend Yield: 0.05%
• Average Volume (3M): 13.78K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.24
• Revenue Growth: 2.48%
• EPS Growth: -54.02%
• Country: US
• Employees: 782
• Sector: Financial
• Sector Strength: 77
• Industry: Insurance
• EPS (TTM): 90.58
• Shares Outstanding: 2,540,811
• 10 Day Avg. Volume: 14,684
• 30 Day Avg. Volume: 13,776
• PEG Ratio: 0.05
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.06
• Price to Cash Flow (P/CF): 18.90
• P/FCF Ratio: 15.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

White Mountains Insurance Group demonstrates strong profitability and a solid balance sheet, primarily due to the elimination of debt which reduces financial risk. However, challenges such as declining revenue, negative cash flow, and bearish technical indicators suggest potential growth and liquidity issues. The valuation is fair, with a good dividend yield providing some investor appeal.

White Mountains Insurance Group Business Overview & Revenue Model

Company Description

White Mountains Insurance Group, Ltd. (WTM) is a diversified financial services holding company based in Hamilton, Bermuda. The company primarily operates in the property and casualty insurance and reinsurance sectors, as well as in other financial services and investment management. Through its subsidiaries and affiliates, White Mountains provides a range of insurance-related services, including underwriting, claims management, and risk assessment to both individual and commercial clients.

How the Company Makes Money

White Mountains Insurance Group makes money primarily through underwriting and investment income. In its insurance operations, the company generates revenue by collecting premiums from policyholders, which are used to cover potential claims and operational costs. Profitability in this segment depends on effective risk management and maintaining a favorable loss ratio. The company also earns income through its investment activities, where it manages a portfolio of fixed-income securities, equities, and alternative investments. Additionally, White Mountains holds interests in various subsidiaries and affiliates, which contribute to its earnings through dividends, fees, and performance-based incentives. Strategic partnerships and acquisitions play a significant role in expanding its market presence and enhancing its profitability.

White Mountains Insurance Group Financial Statement Overview

Summary

White Mountains Insurance Group shows strong profitability and a healthy balance sheet, with no debt and a solid equity position. However, recent declines in revenue and cash flow pose challenges to future growth and liquidity. Operational efficiency needs improvement to sustain positive cash flows.

Income Statement

The company shows a strong gross profit margin over time, with 100% in the latest year due to revenue and gross profit being equal. The net profit margin improved significantly from negative to positive in recent years, indicating improving profitability. However, revenue has decreased significantly in 2024 compared to 2023, suggesting potential challenges in revenue growth. The EBIT and EBITDA margins have been volatile, reflecting fluctuating operational performance.

Balance Sheet

The balance sheet is strong, with a debt-to-equity ratio of 0 in 2024, indicating no leverage and a solid equity position. The return on equity is positive, reflecting profitability on shareholder investments in recent years. The equity ratio is stable, indicating a healthy balance between liabilities and equity. The absence of debt in 2024 reduces financial risk significantly.

Cash Flow

Cash flow performance is mixed, with a recent decline in operating cash flow and free cash flow turning negative in 2024, suggesting cash management challenges. The operating cash flow to net income ratio is negative, indicating that operating cash flows are not supporting profits adequately. There is a significant drop in free cash flow growth, presenting a potential risk to liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
118.80M	2.17B	1.16B	944.80M	1.18B
	Gross Profit
89.20M	2.13B	1.06B	875.50M	1.17B
	EBIT
103.40M	116.70M	874.50M	-413.40M	618.90M
	EBITDA
35.80M	610.30M	-103.90M	-232.50M	711.20M
	Net Income Common Stockholders
64.50M	502.00M	-190.80M	-340.60M	708.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.22B	121.70M	1.18B	725.20M	354.10M
	Total Assets
9.93B	8.39B	7.39B	7.00B	4.83B
	Total Debt
562.50M	564.60M	575.20M	693.00M	376.40M
	Net Debt
310.20M	442.20M	320.20M	433.70M	165.20M
	Total Liabilities
4.79B	3.82B	3.45B	3.30B	1.01B
	Stockholders Equity
1.44B	4.24B	3.75B	3.55B	3.91B
Cash Flow		Free Cash Flow
-30.10M	404.10M	326.30M	145.00M	9.30M
	Operating Cash Flow
-30.10M	404.10M	326.30M	38.60M	-60.60M
	Investing Cash Flow
40.30M	-543.90M	108.40M	-208.30M	64.60M
	Financing Cash Flow
-10.40M	7.20M	-327.40M	217.60M	49.00M

White Mountains Insurance Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1865.51
• 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 WTM, the sentiment is Neutral. The current price of 1865.51 is above the 20-day moving average (MA) of 1853.07, below the 50-day MA of 1884.96, and above the 200-day MA of 1824.80, indicating a neutral trend. The MACD of -5.50 indicates Negative momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 71.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WTM.

White Mountains Insurance Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACGL	81 Outperform	$34.05B	8.11	22.02%	―	26.24%	-3.87%
WRB	77 Outperform	$23.88B	14.36	22.16%	0.50%	12.32%	29.21%
MKL	73 Outperform	$23.44B	9.22	16.52%	―	5.17%	35.36%
RNR	73 Outperform	$11.79B	6.86	18.40%	0.65%	28.22%	-31.48%
AIG	71 Outperform	$48.61B	16.10	7.10%	1.90%	-28.56%	1.14%
WTM	69 Neutral	$4.81B	21.05	5.22%	0.05%	2.48%	-54.02%
Sector *	64 Neutral	$13.80B	10.64	9.23%	4.22%	17.66%	-7.66%