Markel Corporation
Markel Corporation Fundamental Analysis
Markel Corporation (MKL) shows moderate financial fundamentals with a PE ratio of 11.61, profit margin of 12.89%, and ROE of 11.85%. The company generates $17.5B in annual revenue with moderate year-over-year growth of 6.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MKL's fundamental strength across five key dimensions:
Efficiency Score
WeakMKL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMKL trades at attractive valuation levels.
Growth Score
ExcellentMKL delivers strong and consistent growth momentum.
Financial Health Score
ModerateMKL shows balanced financial health with some risks.
Profitability Score
WeakMKL struggles to sustain strong margins.
Key Financial Metrics
Is MKL Expensive or Cheap?
P/E Ratio
MKL trades at 11.61 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MKL's PEG of 1.84 indicates fair valuation.
Price to Book
The market values Markel Corporation at 1.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.50 times EBITDA. This is generally considered low.
How Well Does MKL Make Money?
Net Profit Margin
For every $100 in sales, Markel Corporation keeps $12.89 as profit after all expenses.
Operating Margin
Core operations generate 16.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.85 in profit for every $100 of shareholder equity.
ROA
Markel Corporation generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Markel Corporation produces operating cash flow of $2.25B, showing steady but balanced cash generation.
Free Cash Flow
Markel Corporation generates strong free cash flow of $2.09B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $165.93 in free cash annually.
FCF Yield
MKL converts 7.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How MKL Stacks Against Its Sector Peers
| Metric | MKL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.61 | 18.86 | Better (Cheaper) |
| ROE | 11.85% | 847.00% | Weak |
| Net Margin | 12.89% | 4202.00% | Weak |
| Debt/Equity | 0.00 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 0.00% | -21543.00% (disorted) | Weak |
MKL outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Markel Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
87.36%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
63.37%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
116.79%
Industry Style: Value, Dividend, Cyclical
High Growth