White Mountains Insurance Group Ltd (WTM) stock analysis

P/E below its 5-year median

White Mountains Insurance's P/E of 6.0 is below its own 5-year median of 8.0.

P/E below the industry

White Mountains Insurance's P/E of 6.0 is below the Fire, Marine, and Casualty Insurance median of 10.4.

P/S above the industry

White Mountains Insurance's price-to-sales of 1.50 is above the Fire, Marine, and Casualty Insurance median of 1.28.

P/B below the industry

White Mountains Insurance's price-to-book of 1.01 is below the Fire, Marine, and Casualty Insurance median of 1.62.

Trading below fair value

The share price of $2259.75 is below our fair value estimate of $3206.06.

Margin of safety over 20%

The price is 29.5% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 47.8% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 15.8% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 44.9% over the last twelve months; the Fire, Marine, and Casualty Insurance median is 5.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 92.8% over the last twelve months, against 95.5% a year earlier.

Return on equity under 15%

Return on equity was 19.2% over the last twelve months and averaged 10.9% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 7.5%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

White Mountains Insurance's return on equity of 19.2% is above the Fire, Marine, and Casualty Insurance median of 15.9%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 26.9% over the last twelve months, against a 5-year average of 17.4%.

Net margin above the industry

White Mountains Insurance's net margin of 26.9% is above the Fire, Marine, and Casualty Insurance median of 12.0%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

Insurers do not split assets into current and non-current.

Bankruptcy risk (Altman Z)

The Altman model does not apply to insurers.

Pays a dividend

White Mountains Insurance paid dividends worth 0.0% of the share price over the last twelve months.

Yield below Treasuries

The 0.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; White Mountains Insurance yields 0.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 0.2% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.