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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2452
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Insurance
$24.2B
Richard R. Whitt
Markel Corporation markets and underwrites specialty insurance products in the United States, Bermuda, the United Kingdom, rest of Europe, Canada, Asia Pacific, and the Middle East. Its Insurance segment offers general and professional liability, personal lines, marine and energy, specialty programs, and workers' compensation insurance products. Its Reinsurance segment offers transaction, healthcare, and environmental impairment liability; and specialty treaty reinsurance products.
Headcount
20.9K
HQ Base
Glen Allen, Virginia
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = MKL ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | 15.7% | 12.8% | 48.9% | 37.0% | 28.8% | 14.9% | 2.5% | 0.0x | $1.1B | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | 13.2% | 1.4% | 100.0% | 97.0% | 23.8% | 11.8% | 2.7% | 5.0x | $21.5B | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | 9.9% | 0.6% | 84.5% | 70.0% | 7.3% | 14.9% | 0.0% | 923.0x | $18.3B | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | 17.3% | 17.7% | 100.0% | 100.0% | 100.0% | 1643.8% | 0.0% | 0.0x | $5.0B | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | 12.6% | 0.9% | 32.0% | 31.3% | 7.9% | -12.9% | 4.3% | 24.0x | $37.8B | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | 22.5% | 22.8% | 101.8% | 100.0% | 100.0% | 138.9% | 0.0% | 0.0x | $8.4B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | 8.8% | 5.8% | 98.7% | 75.7% | 88.5% | 17.6% | 4.3% | 34.0x | $2.2B | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 27.1% | 100.0% | 98.9% | 459.9% | 333.4% | 0.0% | 0.0x | $43.7B | VS | |
$MKL MARKEL GROUP INC. | 47 | 30 | 56 | 46 | 10.4x | 7.0x | 14.0% | 3.7% | -1.3% | 20.7% | 14.7% | 4.9% | 0.0% | 24.0x | $24.2B | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 8.9% | 1.2% | 76.5% | 17.0% | 21.5% | 10.8% | 1.9% | 0.5x | - | REF |
MARKEL GROUP INC. (MKL) receives a "Reduce" rating with a composite score of 47.2/100. It ranks #2452 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Richard R. Whitt
Chief Executive Officer
Labor Force
20,900
30
43
80
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for MKL
In-line with peers — no strong momentum signal
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for MKL.
View All RatingsMaterial decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 30 | 31 | -1NEUTRAL |
| MOMENTUM | 46 | 46 | 0NEUTRAL |
| VALUATION | 56 | 76 | -20DRAG |
| INVESTMENT | 43 | 81 | -38DRAG |
| STABILITY | 80 | 87 | -7DRAG |
| SHORT INT | 46 | 46 | 0NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 1577.8% vs WACC 8.5% (spread +1569.2%)
GM -1% vs sector 77%, OM 21% vs sector 17%
Capital turnover 16.49x
Rev growth 5%, 10yr history
Interest coverage 77.6x, Net debt/EBITDA 0.2x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
MARKEL GROUP INC. receives a Reduce rating from our analysis, with a composite score of 47.2/100 and 2 out of 5 stars, ranking #2452 out of 7,333 stocks. MKL's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
MKL's quality score of 30/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 14.0% (sector avg: 8.9%), gross margins of -1.3% (sector avg: 76.5%), net margins of 14.7% (sector avg: 21.5%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
MKL's value score of 56/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 10.43x, an EV/EBITDA of 7.00x, a P/B ratio of 1.46x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
With an investment score of 43/100, MKL exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 4.9% vs. a sector average of 10.8% and a return on assets of 3.7% (sector: 1.2%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
MKL is currently showing below-average momentum at 46/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 4.9% year-over-year, while a beta of 0.58 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
MKL shows good financial stability with a score of 80/100. Key stability metrics include a beta of 0.58 and a debt-to-equity ratio of 24.00x (sector avg: 0.5x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
The short interest score of 46/100 for MKL suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 24.00x). With a $24.2B market cap (large-cap), MARKEL GROUP INC. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
MARKEL GROUP INC. is a large-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #2452 of 7,333 overall (67th percentile). Key comparisons include ROE of 14.0% exceeding the 8.9% sector median and operating margins of 20.7% above the 17.0% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While MKL currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Finance, Insurance, And Real Estate Alpha →Quant Factor Profile
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Improvement in Quality (30) would have the largest impact on the composite score.
EV/EBITDA 10% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 56% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 102% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate MARKEL GROUP INC. (MKL) as a Reduce with a composite score of 47.2/100 at a current price of $2066.00. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in stability (80th percentile) and value (56th percentile), which together account for the majority of the composite score. Offsetting weakness in quality (30th percentile) and investment (43th percentile) tempers our overall conviction. We assign a Narrow Moat rating (59/100), Low uncertainty, and Standard capital allocation.
Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
MARKEL GROUP INC. holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 47.2/100 places it at rank #2452 in our full 7,333-stock universe. With a $24.2B market capitalization, MARKEL GROUP INC. operates at meaningful scale within the Finance, Insurance, And Real Estate sector, providing competitive advantages in distribution, procurement, and customer reach.
Revenue is growing at 5%, though momentum at the 46th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.
The margin cascade tells an important story: gross margins of -1% (-77.8pp vs sector) narrow to operating margins of 21% (+3.7pp vs sector) and net margins of 14.7%, yielding a gross-to-net conversion rate of N/A%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $2066.00, MARKEL GROUP INC. is trading near fair value based on current fundamentals. Our value factor score of 56/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 10.4x (roughly in line with the sector median of 11.9x), EV/EBITDA of 7.0x (near the sector median), P/B of 1.5x, P/S of 1.6x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.
A conservative balance sheet (24% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
The Reduce rating (composite 47.2/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Below-average quality (30th percentile) raises durability concerns about the fundamental profile and increases the risk of negative earnings surprises.
We assign a Low uncertainty rating to MARKEL GROUP INC.. The company exhibits strong financial stability with a beta of 0.58, conservative leverage (24% D/E), and a stability factor in the 80th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.
Specific risk factors that inform our assessment include: weak quality scores (30th percentile); low beta of 0.58 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 80th percentile and quality factor at the 30th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: conservative leverage (24% D/E) limits balance sheet risk; above-average stability (80th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate MARKEL GROUP INC.'s capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 14.0%, and the balance sheet is managed within acceptable parameters (D/E: 24%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; MARKEL GROUP INC. falls short on at least one dimension.
There is room for improvement in optimizing the capital structure or enhancing shareholder returns. Absent a dividend, the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.
In summary, MARKEL GROUP INC. receives a Reduce rating with a composite score of 47.2/100 (rank #2452 of 7,333). Our quantitative framework assigns a Narrow Moat (59/100, trend: stable), Low uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 51/100.
Our analysis does not support a constructive view on MARKEL GROUP INC. at this time. The combination of the current quantitative profile, low uncertainty, and standard capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign MARKEL GROUP INC. a Narrow Moat rating with a composite moat score of 59/100. The ROIC-WACC spread of +1569.2% is the primary signal of economic value creation. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that MARKEL GROUP INC. can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being economic value creation at 18.7/20.
The strongest moat sources are economic value creation (18.7/20) and financial resilience (16.1/20). ROIC 1577.8% vs WACC 8.5% (spread +1569.2%). Interest coverage 77.6x, Net debt/EBITDA 0.2x. These pillars form the core of MARKEL GROUP INC.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include margin superiority (6.8/20) and growth durability (7.6/20). GM -1% vs sector 77%, OM 21% vs sector 17%. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect MARKEL GROUP INC.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include operating margins of 21% reflecting effective cost management. The margin cascade from -1% gross to 21% operating to 14.7% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality raises some durability concerns, with the quality factor at the 30th percentile.
The margin profile shows gross margins of -1%, operating margins of 21%, net margins of 14.7%. Return metrics include ROE of 14.0% and ROA of 3.7%. Relative to the Finance, Insurance, And Real Estate sector, gross margins are 77.8 percentage points below the sector median of 77%, and ROE of 14.0% compares to a sector median of 8.9%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 24%, revenue growth of 5%. The sector median D/E is 0%, putting MARKEL GROUP INC. at higher leverage than the typical peer. The combination of low leverage and healthy profitability provides significant financial resilience and strategic optionality.
Above 50MA
37.18%
Net New Highs
+51081
Markel Group Inc. (MKL) has been gaining momentum due to new business volume, strong retention levels, an improving rate environment, higher interest income, strategic buyouts, and favorable growth estimates. The company's earnings have grown significantly in the past five years, and it has a decent earnings surprise history. However, it faces risks from catastrophe losses and rising expenses.
Markel Group (MKL) stands to gain from rate increases, strategic buyouts, new business volume, solid capital position and prudent capital deployment.
Markel Group Inc. (NYSE: MKL) announced today the appointments of Simon Wilson, CEO of Markel Insurance, and Andrew Crowley, President of Markel Ventures, as Executive Vice Presidents of Markel Group, in addition to their current responsibilities. Wilson and Crowley oversee Markel Group's insurance and non‑insurance businesses, respectively, and their appointments highlight the critical role each plays in advancing the company's strategic and operational priorities. Both will report to Tom Gayne
Markel, often compared to Berkshire Hathaway, has not been performing as well as the Warren Buffett-led conglomerate recently. However, this could change soon, according to the analysis.
Markel, an insurance company that also makes stock market investments and acquires businesses, reported strong Q4 earnings, beating expectations on the top and bottom lines. The company's stock price surged to a new all-time high, and Markel announced a $2 billion stock buyback program to take advantage of the perceived discount to intrinsic value.