White Mountains Insurance Group (WTM) AI Stock Analysis

• Market Cap: $5.23B
• Dividend Yield: 0.05%
• Average Volume (3M): 20.58K
• Price to Earnings (P/E): 37.4
• Beta (1Y): 0.18
• Revenue Growth: -4.24%
• EPS Growth: -78.10%
• Country: US
• Employees: 893
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 44.18
• Shares Outstanding: 2,543,741
• 10 Day Avg. Volume: 21,975
• 30 Day Avg. Volume: 20,584
• PEG Ratio: -0.39
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 8.39
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 5.38
• Enterprise Value/Ebitda: 15.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 152
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $2,245.00 ▲(10.64% Upside)

White Mountains Insurance Group's overall stock score is driven by a solid financial foundation and favorable technical indicators. The strategic sale of a majority stake in Bamboo is a significant positive corporate event, enhancing financial flexibility. However, the high P/E ratio suggests potential overvaluation, which tempers the overall score.

Positive Factors

Strategic Sale of Bamboo Stake

The sale enhances financial flexibility, providing significant cash proceeds and a gain to book value, supporting future growth initiatives.

Strong Cash Flow Management

Robust cash flow performance supports financial health, enabling strategic investments and operational resilience.

Low Leverage

Low leverage enhances financial stability, reducing risk and providing flexibility for strategic initiatives.

Negative Factors

Negative Revenue Growth

Declining revenue growth can impact long-term profitability and market competitiveness, necessitating strategic adjustments.

Low Return on Equity

Low ROE suggests limited profitability relative to shareholder equity, potentially affecting investor confidence and capital efficiency.

Decline in Revenue Growth Rate

A declining revenue growth rate may hinder the company's ability to expand and compete effectively in the market.

White Mountains Insurance Group Business Overview & Revenue Model

Company Description

White Mountains Insurance Group (WTM) is a diversified insurance holding company that operates primarily in the property and casualty insurance sectors. The company focuses on underwriting, investing, and managing insurance assets, and provides a range of insurance products through its subsidiaries. WTM is known for its strategic partnerships and investments in various insurance entities, allowing it to leverage its expertise in risk management and capital allocation.

How the Company Makes Money

White Mountains Insurance Group generates revenue through multiple channels, primarily by collecting premiums from policyholders in its insurance operations. The company earns underwriting income by assessing and assuming risks associated with the policies it issues. In addition to premiums, WTM also generates income from its investment portfolio, which includes a diversified range of assets such as stocks, bonds, and alternative investments. The performance of these investments contributes significantly to its overall profitability. Furthermore, WTM's strategic partnerships and reinsurance arrangements enhance its earning potential by allowing it to share risks and expand its market reach. Overall, the combination of underwriting income and investment returns constitutes the main revenue streams for White Mountains Insurance Group.

White Mountains Insurance Group Financial Statement Overview

Summary

White Mountains Insurance Group demonstrates strong revenue growth and profitability in the TTM period, supported by a stable balance sheet with low leverage. However, historical volatility in profitability and recent declines in cash flow growth present potential risks. The company is well-positioned in its industry, but maintaining consistent performance and addressing cash flow challenges will be crucial for future success.

Income Statement

White Mountains Insurance Group shows strong revenue growth in the TTM period with a 51.69% increase, indicating robust business expansion. The gross profit margin of 68.37% and net profit margin of 23.35% reflect solid profitability. However, the company experienced fluctuations in profitability in previous years, with negative margins in 2021. Overall, the current trajectory is positive, but historical volatility suggests potential risks.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.15, indicating prudent financial leverage. The return on equity (ROE) of 4.41% in the TTM period is modest, suggesting room for improvement in generating returns for shareholders. The equity ratio of 68.49% reflects a strong equity base, providing financial stability. While the current position is solid, historical ROE fluctuations highlight potential challenges in maintaining consistent returns.

Cash Flow

The cash flow analysis reveals a decline in free cash flow growth by 11.95% in the TTM period, which could impact future liquidity. The operating cash flow to net income ratio is not available, indicating potential concerns in cash generation relative to earnings. However, the free cash flow to net income ratio of 1.0 suggests adequate cash flow coverage. Overall, while cash flow management appears stable, the recent decline in growth warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.49B	2.35B	2.17B	1.16B	614.40M	895.60M
Gross Profit	1.11B	1.07B	1.15B	370.90M	33.10M	813.30M
EBITDA	381.10M	371.10M	610.30M	-104.80M	-231.50M	677.40M
Net Income	140.20M	230.40M	509.20M	792.80M	-275.40M	708.70M
Balance Sheet
Total Assets	12.35B	9.93B	8.39B	7.39B	7.00B	4.83B
Cash, Cash Equivalents and Short-Term Investments	1.42B	1.22B	1.61B	1.18B	605.80M	354.00M
Total Debt	765.80M	562.50M	564.60M	575.20M	639.10M	376.40M
Total Liabilities	6.63B	4.79B	3.82B	3.45B	3.30B	1.01B
Stockholders Equity	4.77B	4.48B	4.24B	3.75B	3.55B	3.91B
Cash Flow
Free Cash Flow	560.70M	586.80M	404.10M	326.30M	98.20M	-12.80M
Operating Cash Flow	560.70M	586.80M	404.10M	326.30M	98.20M	-12.80M
Investing Cash Flow	-615.10M	-447.00M	-543.90M	108.40M	-204.00M	65.50M
Financing Cash Flow	182.60M	4.20M	7.20M	-327.40M	149.20M	-21.80M

White Mountains Insurance Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2029.06
• 50DMA: Positive
• 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 WTM, the sentiment is Positive. The current price of 2029.06 is above the 20-day moving average (MA) of 1993.64, above the 50-day MA of 1940.72, and above the 200-day MA of 1830.75, indicating a bullish trend. The MACD of 36.00 indicates Negative momentum. The RSI at 68.80 is Neutral, neither overbought nor oversold. The STOCH value of 34.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WTM.

White Mountains Insurance Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIGI	77 Outperform	$4.91B	12.51	12.22%	1.91%	10.98%	74.87%
WTM	73 Outperform	$5.23B	37.37	2.95%	0.05%	-4.24%	-78.10%
HGTY	70 Outperform	$4.44B	45.53	16.42%	―	17.47%	54.19%
MCY	69 Neutral	$5.18B	11.78	21.47%	1.36%	6.18%	-21.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LMND	60 Neutral	$5.82B	-32.77	-31.34%	―	30.53%	21.82%
KMPR	52 Neutral	$2.42B	10.77	9.03%	3.10%	4.51%	-8.29%

White Mountains Insurance Group Corporate Events

White Mountains Sells Stake in Bamboo Group

On December 5, 2025, White Mountains Insurance Group completed the sale of a controlling financial interest in WM Pierce Holdings, Inc., including Bamboo Ide8 Insurance Services, to affiliates of CVC Capital Partners. The transaction involved selling approximately 77.3% of its equity interest in the Bamboo Group for $848 million, while retaining an indirect equity interest valued at $250 million. This strategic move allows White Mountains to maintain a 15% equity stake in Bamboo, potentially impacting its market positioning and stakeholder interests.

White Mountains Sells Majority Stake in Bamboo

On October 2, 2025, White Mountains Insurance Group announced a securities purchase agreement to sell approximately 77% of its equity interest in Bamboo Ide8 Insurance Services, LLC to affiliates of CVC Capital Partners, valuing Bamboo at $1.75 billion. The transaction, expected to close by the end of the fourth quarter of 2025, will result in a gain of approximately $310 to White Mountains’ book value per share and net cash proceeds of approximately $840 million, while retaining a 15% equity stake in Bamboo. This strategic move is anticipated to enhance White Mountains’ financial position and support Bamboo’s growth in the homeowners’ insurance market.