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WTM Stock Analysis: Top Mid-Cap Buy (Score 62.9/100) | Blank Capital Research | Blank Capital Research
WTM
WHITE MOUNTAINS INSURANCE GROUP LTD
$2,301.14
-8.78 (-0.38%)
Score62.9
Data as of Apr 6, 2026
WTM
WHITE MOUNTAINS INSURANCE GROUP LTD
FinancialsInsurance
$2,301.14
-8.78 (-0.38%)
Open $2,307.10High $2,307.10Low $2,266.62Prev $2,309.92Vol ---52W: $1,648.00 – $2,264.70
Buy
Composite score
01234567890123456789.0123456789
Global rank
#1
Percentile
Top 1%
Business quality
80th
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
White Mountains Insurance Group (WTM) is a deeply misunderstood financial holding company operating similarly to an early-stage Berkshire Hathaway. Through disciplined underwriting and exceptional capital allocation, management consistently compounds book value per share while flying under the radar of most institutional analysts.
Investment Thesis
WTM is a classic 'compounder' that demands patience. The company holds significant excess capital, giving management the dry powder to execute opportunistic acquisitions or massive share repurchases when the stock trades below intrinsic value. Their operating subsidiaries (like BAM and Ark) hold dominant, niche market positions with significant moats. We believe the current market price fails to account for the embedded optionality within their un-deployed capital base.
Key Growth Drivers
Aggressive Share Repurchases
Management has repeatedly demonstrated a willingness to launch massive tender offers when they believe the stock is undervalued, providing a powerful floor to the share price and rapidly accreting value for long-term holders.
Niche Operating Moats
Subsidiaries such as Build America Mutual (BAM) operate in highly specialized municipal bond insurance markets, generating steady, low-risk fee income that is largely uncorrelated to broader macroeconomic volatility.
Capital Allocation Optionality
With billions in undeployed capital following recent divestitures, White Mountains is uniquely positioned to act as a liquidity provider of last resort or acquire distressed assets during market dislocations.
Valuation & Financial Modeling
WTM should be valued primarily on its Adjusted Book Value (ABV) per share. The stock historically trades near 1.0x to 1.1x ABV. Given their historical rate of compounding ABV at high single-digits over decades, buying at or below current book value provides an exceptional entry point for a low-risk, compounding asset.
Risk Factors & Bear Case
The primary risk is opportunity cost—if management fails to deploy excess capital accretively, ROE will drag. Additionally, catastrophic event risks within their (albeit limited) insurance portfolios could temporarily impair book value.
Conclusion
White Mountains is an 'all-weather' compounder offering a unique blend of downside protection and opportunistic upside. Its complex structure obscures a remarkably consistent engine of wealth creation. We view it as a core mid-cap holding for value-oriented investors.
Upcoming Catalysts
No upcoming catalysts identified.
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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 79.6GRADE B+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.1%
Sector: 8.5%
Dividend Analysis audit
GROWTH
0.06%
Trailing Yield
$0.06
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
1%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) receives a "Buy" rating with a composite score of 62.9/100, ranked #1 out of 4446 stocks. Key factor scores: Quality 80/100, Value 79/100, Momentum 54/100. This is quantitative analysis only — not investment advice.
WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does WHITE MOUNTAINS INSURANCE GROUP LTD Do?
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. WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) is classified as a mid-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO George M. Rountree and employs approximately 1,650 people, headquartered in HANOVER, New Hampshire. With a market capitalization of $5.4B, WTM is one of the notable companies in the Financials sector.
WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) Stock Rating — Buy (April 2026)
As of April 2026, WHITE MOUNTAINS INSURANCE GROUP LTD receives a Buy rating with a composite score of 62.9/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.WTM ranks #1 out of 4,446 stocks in our coverage universe. Within the Financials sector, WHITE MOUNTAINS INSURANCE GROUP LTD ranks #1 of 891 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
WTM Stock Price and 52-Week Range
WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) currently trades at $2301.14. The stock lost $8.78 (0.4%) in the most recent trading session. The 52-week high for WTM is $2264.70, which means the stock is currently trading 1.6% from its annual peak. The 52-week low is $1648.00, putting the stock 39.6% above its annual trough. Recent trading volume was 20K shares, suggesting relatively thin trading activity.
Is WTM Overvalued or Undervalued? — Valuation Analysis
WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) carries a value factor score of 79/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 9.16x, compared to the Financials sector average of 14.88x — a discount of 38%. The price-to-book ratio stands at 0.92x, versus the sector average of 1.22x. The price-to-sales ratio is 1.90x, compared to 0.90x for the average Financials stock. On an enterprise value basis, WTM trades at 9.71x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, WHITE MOUNTAINS INSURANCE GROUP LTD appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
WHITE MOUNTAINS INSURANCE GROUP LTD Profitability — ROE, Margins, and Quality Score
WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) earns a quality factor score of 80/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is 10.1%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 5.0% versus the sector average of 1.2%.
On a margin basis, WHITE MOUNTAINS INSURANCE GROUP LTD reports gross margins of 96.3%. The operating margin is 21.8% (sector: 21.8%). Net profit margin stands at 20.1%, versus 17.7% for the average Financials stock. Revenue growth is running at 1.6% on a trailing basis, compared to 9.4% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.
WTM Debt, Balance Sheet, and Financial Health
WHITE MOUNTAINS INSURANCE GROUP LTD has a debt-to-equity ratio of 14.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 2.03x, indicating strong short-term liquidity. Total debt on the balance sheet is $837M. Cash and equivalents stand at $337M.
WTM has a beta of 0.30, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for WHITE MOUNTAINS INSURANCE GROUP LTD is 90/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
WHITE MOUNTAINS INSURANCE GROUP LTD Revenue and Earnings History — Quarterly Trend
In TTM 2026, WHITE MOUNTAINS INSURANCE GROUP LTD reported revenue of $2.97B and earnings per share (EPS) of $430.14. Net income for the quarter was $616M. Gross margin was 96.3%. Operating income came in at $667M.
In FY 2025, WHITE MOUNTAINS INSURANCE GROUP LTD reported revenue of $3.73B and earnings per share (EPS) of $430.14. Net income for the quarter was $1.20B. Gross margin was 95.9%. Revenue grew 66.8% year-over-year compared to FY 2024. Operating income came in at $1.33B.
In Q3 2025, WHITE MOUNTAINS INSURANCE GROUP LTD reported revenue of $864M and earnings per share (EPS) of $44.18. Net income for the quarter was $162M. Gross margin was 93.6%. Revenue grew 3.0% year-over-year compared to Q3 2024. Operating income came in at $179M.
In Q2 2025, WHITE MOUNTAINS INSURANCE GROUP LTD reported revenue of $689M and earnings per share (EPS) of $47.75. Net income for the quarter was $164M. Gross margin was 93.8%. Revenue grew -19.0% year-over-year compared to Q2 2024. Operating income came in at $177M.
Over the past 8 quarters, WHITE MOUNTAINS INSURANCE GROUP LTD has demonstrated a growth trajectory, with revenue expanding from $851M to $2.97B. Investors analyzing WTM stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
WTM Dividend Yield and Income Analysis
WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) currently pays a dividend yield of 0.1%. At this yield, a $10,000 investment in WTM stock would generate approximately $$6.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning WTM yields less than the typical sector peer. With a net margin of 20.1%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
WTM Momentum and Technical Analysis Profile
WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) has a momentum factor score of 54/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 33/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 15/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
WTM vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing WTM against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full WTM vs S&P 500 (SPY) comparison to assess how WHITE MOUNTAINS INSURANCE GROUP LTD stacks up against the broader market across all factor dimensions.
WTM Next Earnings Date
No upcoming earnings date has been announced for WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy WTM? — Investment Thesis Summary
The bull case for WHITE MOUNTAINS INSURANCE GROUP LTD rests on several quantitative strengths. The quality score of 80/100 indicates above-average profitability and business fundamentals. The value score of 79/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 90/100) reduces downside risk.
In summary, WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) earns a Buy rating with a composite score of 62.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on WTM stock.
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Execution Benchmarks audit
Revenue Growth
YOY expansion rate
1.6%
Sector: 9.4%
-83% VS SCTR
Gross Margin
Core pricing power
96.3%
Sector: 0.0%
+Infinity% VS SCTR
Operating Margin
Operating efficiency
21.8%
Sector: 21.8%
IN LINE
Net Margin
Bottom-line conversion
20.1%
Sector: 17.7%
+13% VS SCTR
Return on Equity
Equity capital efficiency
10.1%
Sector: 8.5%
+18% VS SCTR
Return on Assets
Asset base utilization
5.0%
Sector: 1.2%
+307% VS SCTR
Debt/Equity
Financial leverage load
14.0%
Sector: 121.0%
+88% VS SCTR
Dividend Yield
Direct cash return
0.1%
Sector: 2.5%
-98% VS SCTR
-25%
Price / Sales
1.9x
+111%
WHITE MOUNTAINS INSURANCE GROUP LTD exhibits a 61% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
5.0%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
96.3%
Sector: 0.0%
Operating Margin
Core business profitability
21.8%
Sector: 21.8%
Net Margin
Bottom-line profitability
20.1%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta-98%
Income Projection audit
A $10,000 investment would generate approximately $6 annually in dividends at the current trailing rate.