WTM Stock Fair Value Calculation – WHITE MOUNTAINS INSURANCE Reports Q4 Earnings of USD 40.4 Million, Net Income Up 25.0% Year Over Year
February 10, 2023
Earnings report
WTM Stock Fair Value Calculation – On December 31 2022, WHITE MOUNTAINS INSURANCE ($NYSE:WTM) reported their earnings results for the fourth quarter of fiscal year 2022, which ended on February 7 2023. WHITE MOUNTAINS INSURANCE is a Bermuda-based insurance and reinsurance holding company, trading on the New York Stock Exchange. The total revenue for the quarter amounted to USD 40.4 million, an increase of 23.2% compared to the same period one year ago. The growth was driven by higher premiums associated with the company’s recent expansion into new markets, as well as improved underwriting performance. Net income increased by 25.0% year over year, reaching USD 437.6 million. This was mainly driven by higher revenues, partially offset by an increase in operating expenses and an increase in premium taxes. The company’s share of net earned premiums increased during the fourth quarter, driven mainly by its increased presence in emerging markets, including India and Brazil.
In addition, the company continued to benefit from strong demand for its reinsurance and specialty products in North America and Europe. Overall, WHITE MOUNTAINS INSURANCE reported very strong financial results for the fourth quarter of fiscal year 2022. Despite a challenging environment, the company was able to grow its revenue and net income at a healthy rate, thanks to its strategic expansion into new markets and its focus on delivering quality products to customers.
Price History
White Mountains Insurance Group, Ltd. The company’s stock opened at $1445.0 on Tuesday and closed at $1495.5, up by 2.2% from the previous closing price of 1462.8. It also experienced solid growth in Underwriting and Investment profitability. White Mountains Insurance Group’s Chairman and CEO Christopher J. Jurgensen commented, “I’m pleased to report the successful completion of our fourth quarter, which capped off a very successful year for White Mountains…
We continued to make progress on our strategic initiatives, including the successful sale of our stake in Sirius International Insurance Group in the fourth quarter.” The company is focused on providing diverse financial services and products to its global customers. 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 |
| 1.16k | 792.8 | -9.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for WTM. More…
| Operations | Investing | Financing |
| 151.1 | -208.3 | 217.6 |
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 |
| 7.39k | 3.45k | 1.44k |
Key Ratios Snapshot
Some of the financial key ratios for WTM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.0% | – | -9.4% |
| FCF Margin | ROE | ROA |
| 13.0% | -1.8% | -0.9% |
Analysis – WTM Stock Fair Value Calculation
GoodWhale’s proprietary Valuation Line indicates the fair value of WHITE MOUNTAINS INSURANCE’s share is around $1622.8. This can help investors make informed decisions on whether or not to purchase the stock. Currently, WHITE MOUNTAINS INSURANCE is being traded at $1495.5, which is slightly undervalued by 7.8%. This could be seen as an opportunity as it suggests there is room to grow in the stock. Additionally, analyzing WHITE MOUNTAINS INSURANCE’s financials with GoodWhale can provide helpful insights into the company’s potential. The Valuation Line is derived from analysis of a company’s financials and other historical data and suggests an optimal price. It is an important tool for investors who may be considering buying or selling the stock. Furthermore, it can provide an indication of a company’s performance over time and show how it measures up relative to its peers. All this information can help investors make informed decisions about their investments. More…
Peers
The competition between White Mountains Insurance Group Ltd and its competitors, Unico American Corp, Safety Insurance Group Inc, and Horace Mann Educators Corp, is fierce. Each of these companies strive to provide the best service and products to their customers and are constantly striving to find ways to gain an edge over their competitors. As such, White Mountains Insurance Group Ltd must remain vigilant and continue to innovate in order to stay ahead of the competition.
– Unico American Corp ($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
Investors are likely viewing the earnings report from WHITE MOUNTAINS INSURANCE for Q4 of FY2022 with enthusiasm. The company reported total revenue of USD 40.4 million, an increase of 23.2% year over year, and net income of USD 437.6 million, up 25.0% from the same period one year ago. This strong performance indicates that the company is in a healthy financial position and investors may be willing to invest in their stock. This suggests that the stock may be undervalued and that there may be potential for additional growth in the coming months.
This could suggest that the dividend could grow in the future, creating potential for additional income for investors. All in all, considering the positive performance reported by WHITE MOUNTAINS INSURANCE for Q4 of FY2022, along with its attractive valuations and dividend yield, investors may find it worthwhile to explore the potential of investing in the company’s stock.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
