White Mountains Insurance Group (WTM) AI Stock Analysis

• Market Cap: $4.51B
• Dividend Yield: 0.06%
• Average Volume (3M): 19.78K
• Price to Earnings (P/E): 152.7
• Beta (1Y): 0.30
• Revenue Growth: -4.09%
• EPS Growth: -94.77%
• Country: US
• Employees: 893
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Property & Casualty
• EPS (TTM): 13.19
• Shares Outstanding: 2,573,726
• 10 Day Avg. Volume: 20,305
• 30 Day Avg. Volume: 19,776
• PEG Ratio: 0.53
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.25
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 8.27
• Enterprise Value/Ebitda: 2.22
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: $1,909.00 ▲(7.01%Upside)

White Mountains Insurance Group's overall score reflects solid financial performance with strong cash flow and a robust balance sheet. However, technical analysis shows mixed signals, and high P/E ratio suggests overvaluation risk. The absence of earnings call and corporate event data prevents further insights.

White Mountains Insurance Group Business Overview & Revenue Model

Company Description

White Mountains Insurance Group, Ltd., through its subsidiaries, provides insurance and other financial services in the United States. The company operates through five segments: HG Global/BAM, Ark, NSM, Kudu, and Other Operations. The HG Global/BAM segment provides insurance on municipal bonds issued to finance public purposes, such as schools, utilities, and transportation facilities, as well as reinsurance protection services. The Ark segment writes a portfolio of reinsurance and insurance, including property, marine and energy, accident and health, casualty, and specialty products. The NSM segment operates as a managing general agent and program administrator for specialty property and casualty insurance to various sectors comprising specialty transportation, real estate, social services, and pet. The Kudu segment provides capital solutions to boutique asset and wealth managers for generational ownership transfers, management buyouts, acquisitions and growth finances, and legacy partner liquidity, as well as strategic assistance to investees. The Other Operations segment offers insurance solutions to travel industry through broker channel and on a direct-to-consumer basis; and manages separate accounts and pooled investment vehicles for insurance-linked securities sectors, including catastrophe bonds, collateralized reinsurance investments, and industry loss warranties of third-party clients. White Mountains Insurance Group, Ltd. was incorporated in 1980 and is headquartered in Hamilton, Bermuda.

How the Company Makes Money

White Mountains Insurance Group generates revenue through its insurance and reinsurance operations, primarily by underwriting premiums in various sectors, including property and casualty insurance. The company earns money from the premiums paid by policyholders in exchange for coverage, while managing risks and claims to ensure profitability. Additionally, White Mountains invests the premiums received in a diversified portfolio of financial instruments, generating investment income that contributes significantly to its revenue. The company also benefits from strategic partnerships and acquisitions that enhance its market position and expand its service offerings.

White Mountains Insurance Group Financial Statement Overview

Summary

White Mountains Insurance Group has demonstrated strong revenue growth and improved profitability in the most recent periods. The balance sheet is robust with manageable debt levels, although past income variability presents a potential risk. Cash flow generation is strong and consistent, supporting the company's financial stability.

Income Statement

The company has demonstrated strong revenue growth over the years, with the TTM (Trailing-Twelve-Months) showing significant improvement in gross and net profit margins compared to previous periods. However, there have been fluctuations in EBIT and EBITDA margins, with a notable decline in EBIT in 2021. Overall, profitability has improved, but past inconsistencies pose a mild risk.

Balance Sheet

The company's debt-to-equity ratio is maintained at a reasonable level, indicating prudent leverage management. The equity ratio is strong, reflecting a solid financial structure. However, return on equity has shown variability, primarily due to fluctuating net income levels over the years. Despite this, the balance sheet remains robust.

Cash Flow

Operating cash flow has been consistently positive, with a notable increase in free cash flow in recent periods. The free cash flow to net income ratio is favorable, suggesting efficient cash generation relative to earnings. However, operating cash flow relative to net income has varied, indicating potential volatility in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	568.40M	15.80M	2.17B	1.16B	614.40M	781.40M
Gross Profit	521.90M	-45.00M	2.13B	1.06B	614.40M	770.10M
EBITDA	203.20M	377.50M	610.30M	-103.90M	-232.50M	711.20M
Net Income	27.70M	227.40M	502.00M	792.80M	-290.90M	711.20M
Balance Sheet
Total Assets	11.00B	9.93B	8.39B	7.39B	7.00B	4.83B
Cash, Cash Equivalents and Short-Term Investments	1.32B	1.22B	1.61B	1.18B	605.80M	354.10M
Total Debt	676.10M	562.50M	564.60M	575.20M	639.10M	376.40M
Total Liabilities	5.87B	4.79B	3.82B	3.45B	3.30B	1.01B
Stockholders Equity	4.51B	4.48B	4.24B	3.75B	3.55B	3.91B
Cash Flow
Free Cash Flow	534.70M	586.80M	404.10M	365.00M	38.60M	-60.60M
Operating Cash Flow	560.50M	586.80M	404.10M	365.00M	38.60M	-60.60M
Investing Cash Flow	-616.70M	-447.00M	-543.90M	115.50M	-208.30M	64.60M
Financing Cash Flow	113.50M	-10.40M	7.20M	-327.40M	217.60M	49.00M

White Mountains Insurance Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1783.93
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 1783.93 is above the 20-day moving average (MA) of 1778.69, above the 50-day MA of 1779.33, and below the 200-day MA of 1839.64, indicating a neutral trend. The MACD of -4.49 indicates Negative momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 56.56 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
THG	78 Outperform	$6.02B	13.95	15.74%	2.13%	3.09%	168.29%
UVE	78 Outperform	$776.51M	12.08	16.95%	2.34%	7.24%	-9.28%
RLI	72 Outperform	$6.54B	23.45	17.99%	0.89%	9.18%	-16.06%
SIGI	68 Neutral	$5.12B	22.99	7.48%	1.77%	13.37%	-35.09%
Sector *	67 Neutral	$16.66B	11.44	9.71%	3.92%	11.61%	-10.70%
WTM	62 Neutral	$4.51B	152.69	0.61%	0.06%	-4.09%	-94.77%
KMPR	58 Neutral	$4.10B	11.99	12.57%	1.99%	-6.08%	―

White Mountains Insurance Group Corporate Events

White Mountains Highlights Strong Q1 2025 Performance

In its 2025 Annual Investor Presentation, White Mountains Insurance Group reported an 8% growth in Adjusted Book Value per Share (ABVPS) for 2024, which fell short of its target. The company highlighted strong operating results from its Ark and Bamboo businesses, although results were mixed in other areas. The presentation also noted significant capital deployments and distributions, with a total capital of $5.8 billion as of the first quarter of 2025. Ark, a specialized P&C insurance business, achieved excellent results in 2024 with a combined ratio of 83% and a 28% growth in Tangible Book Value, while maintaining strong performance in the first quarter of 2025.

White Mountains Insurance Holds 2025 Annual Meeting

White Mountains Insurance Group held its 2025 Annual General Meeting on May 22, 2025, in Bermuda, with 2,573,726 common shares eligible to vote. The meeting resulted in the election of Class I Directors, approval of executive compensation, an amended long-term incentive plan, and the appointment of PwC as the independent accounting firm for 2025.