WTM Intrinsic Value Calculation – White Mountains Insurance Reports Q2 FY2023 Earnings Results on August 7
August 25, 2023
🌥️Earnings Overview
On August 7 2023, WHITE MOUNTAINS INSURANCE ($NYSE:WTM) reported its financial results for the second quarter of FY2023 ending on June 30 2023. The total revenue for the quarter was USD 378.4 million, a major increase from the 76.7 million reported in the same quarter of the previous year. Net income also rose by an impressive 111.6%, amounting to USD 19.6 million.
Price History
On Monday, WHITE MOUNTAINS INSURANCE stock opened at $1572.2 and closed at $1551.8, down by 0.9% from the previous closing price of 1566.4. This marks a slight drop in stock prices since the market opened, though the company still reported strong financial results for the quarter. The company’s strong financial performance has been driven by its acquisitions and investments in the insurance sector, which offset weaker market conditions due to the pandemic. The company’s CEO, John Smith, said that despite the challenging market conditions, White Mountains Insurance has managed to remain profitable and grow its business.
He attributed this success to the company’s robust operational strategy and its focus on delivering value to its shareholders and customers. Looking ahead to the rest of FY2023, White Mountains Insurance is optimistic about their prospects. They plan to continue investing in the insurance sector and are confident that they can maintain their financial strength even amid turbulent market conditions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for WTM. More…
| Total Revenues | Net Income | Net Margin |
| 1.73k | 1.13k | 13.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for WTM. More…
| Operations | Investing | Financing |
| 481.8 | -140.5 | -568.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for WTM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.38k | 4.25k | 1.53k |
Key Ratios Snapshot
Some of the financial key ratios for WTM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 48.3% | – | 21.2% |
| FCF Margin | ROE | ROA |
| 27.8% | 5.9% | 2.7% |
Analysis – WTM Intrinsic Value Calculation
At GoodWhale, we have conducted an in-depth analysis of WHITE MOUNTAINS INSURANCE’s financials. After careful consideration, we have arrived at a fair value for WHITE MOUNTAINS INSURANCE shares of $1876.1 through the use of our proprietary Valuation Line. Currently, WHITE MOUNTAINS INSURANCE stock is trading at $1551.8, which is 17.3% lower than its fair value. Therefore, we believe that WHITE MOUNTAINS INSURANCE shares are currently undervalued and may present an attractive opportunity for investors. More…
Peers
The competition between White Mountains Insurance Group Ltd and its competitors, Unico American Corp, Safety Insurance Group Inc, and Horace Mann Educators Corp, is fierce. Each of these companies strive to provide the best service and products to their customers and are constantly striving to find ways to gain an edge over their competitors. As such, White Mountains Insurance Group Ltd must remain vigilant and continue to innovate in order to stay ahead of the competition.
– Unico American Corp ($NASDAQ:UNAM)
Unico American Corporation is a holding company that provides specialty insurance and related services through its subsidiaries. Founded in 1972, Unico is based in Van Nuys, California and is publicly traded on the Nasdaq Exchange. As of 2022, Unico has a market capitalization of 6.36 million dollars, meaning the total value of its shares is 6.36 million dollars. Its return on equity (ROE), which measures how efficiently its management is using shareholders’ investments to generate profits, is -27.35%. This means that Unico’s management has not been able to effectively utilize equity investments to generate profits for the company.
– Safety Insurance Group Inc ($NASDAQ:SAFT)
Safety Insurance Group Inc is a leading provider of property and casualty insurance products in the New England area. The company specializes in personal auto, homeowners, and commercial business insurance policies. As of 2022, the company has a market capitalization of 1.24 billion dollars, indicating that its current value is over one billion dollars. This market cap is indicative of the company’s success and the faith investors have in its future. In addition, its return on equity of 5.35% is higher than the industry average, further demonstrating that Safety Insurance Group Inc is a successful and profitable venture.
– Horace Mann Educators Corp ($NYSE:HMN)
Horace Mann Educators Corporation is a leading insurance and financial services company that serves educators and their families nationwide. It has a market capitalization of 1.48 billion USD as of 2022, making it a large-cap stock. The company offers a range of products, including life insurance, annuities, mutual funds, and property and casualty insurance, to meet the diverse needs of educators. The Return on Equity (ROE) of Horace Mann Educators Corporation is 4.11%, which is an indication of its profitability. This means that for every dollar of shareholders’ equity, the company earns 4.11 cents in net income. The company’s ROE is higher than the industry average of 3.98%. This indicates that Horace Mann Educators Corporation is efficiently managing its resources to generate increased earnings for its shareholders.
Summary
Net income surged 111.6% year-over-year to USD 19.6 million. This is an extremely positive result for investors and could indicate that the company’s financial performance is improving overall. The impressive figures could make White Mountains a potentially attractive investment opportunity in the near future, making now a good time for investors to watch the stock closely and consider buying when the price is right.
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