White Mountains Insurance Group, Ltd.
White Mountains Insurance Group, Ltd. Fundamental Analysis
White Mountains Insurance Group, Ltd. (WTM) shows strong financial fundamentals with a PE ratio of 5.24, profit margin of 39.37%, and ROE of 20.61%. The company generates $2.6B in annual revenue with strong year-over-year growth of 14.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze WTM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWTM demonstrates superior asset utilization.
Valuation Score
ExcellentWTM trades at attractive valuation levels.
Growth Score
ModerateWTM shows steady but slowing expansion.
Financial Health Score
ModerateWTM shows balanced financial health with some risks.
Profitability Score
ExcellentWTM achieves industry-leading margins.
Key Financial Metrics
Is WTM Expensive or Cheap?
P/E Ratio
WTM trades at 5.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WTM's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values White Mountains Insurance Group, Ltd. at 1.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.46 times EBITDA. This is generally considered low.
How Well Does WTM Make Money?
Net Profit Margin
For every $100 in sales, White Mountains Insurance Group, Ltd. keeps $39.37 as profit after all expenses.
Operating Margin
Core operations generate 46.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.61 in profit for every $100 of shareholder equity.
ROA
White Mountains Insurance Group, Ltd. generates $14.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
White Mountains Insurance Group, Ltd. produces operating cash flow of $615.73M, showing steady but balanced cash generation.
Free Cash Flow
White Mountains Insurance Group, Ltd. generates strong free cash flow of $615.73M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $248.61 in free cash annually.
FCF Yield
WTM converts 11.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.002
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.002
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How WTM Stacks Against Its Sector Peers
| Metric | WTM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.24 | 18.88 | Better (Cheaper) |
| ROE | 20.61% | 801.00% | Weak |
| Net Margin | 39.37% | 2213.00% | Weak |
| Debt/Equity | 0.16 | 1.03 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 615.97 | Weak Liquidity |
| ROA | 14.60% | -19854.00% (disorted) | Strong |
WTM outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews White Mountains Insurance Group, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
264.69%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
88.34%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
32.14%
Industry Style: Value, Dividend, Cyclical
High Growth