Is White Mountains Stock a Good Investment?
White Mountains Investment Advice | WTM |
- Examine White Mountains' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research White Mountains' leadership team and their track record. Good management can help White Mountains navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Property & Casualty Insurance space and any emerging trends that could impact White Mountains' business and its evolving consumer preferences.
- Compare White Mountains' performance and market position to its competitors. Analyze how White Mountains is positioned in terms of product offerings, innovation, and market share.
- Check if White Mountains pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about White Mountains' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in White Mountains Insurance stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if White Mountains Insurance is a good investment.
Sell | Buy |
Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Sell | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine White Mountains Stock
Researching White Mountains' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 90.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.06. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. White Mountains Insurance recorded earning per share (EPS) of 252.53. The entity last dividend was issued on the 8th of March 2024. The firm had 1:20 split on the September 26, 2012.
To determine if White Mountains is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding White Mountains' research are outlined below:
| Over 90.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from insidermonkey.com: Should You Be Confident in White Mountains Insurance Group Ltd |
White Mountains uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in White Mountains Insurance. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to White Mountains' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View |
Earnings surprises can significantly impact White Mountains' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises White Mountains' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2011-10-28 | 2011-09-30 | 1.9 | 1.69 | -0.21 | 11 | ||
2008-10-31 | 2008-09-30 | 0.98 | 1.39 | 0.41 | 41 | ||
2011-04-29 | 2011-03-31 | -4.48 | -3.95 | 0.53 | 11 | ||
2012-04-27 | 2012-03-31 | 4.66 | 5.23 | 0.57 | 12 | ||
2017-11-08 | 2017-09-30 | -1.62 | -2.2 | -0.58 | 35 | ||
2008-08-01 | 2008-06-30 | 3.52 | 2.77 | -0.75 | 21 | ||
2019-02-06 | 2018-12-31 | 1.16 | 0.19 | -0.97 | 83 | ||
2014-10-29 | 2014-09-30 | 5.98 | 4.98 | -1.0 | 16 |
Know White Mountains' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as White Mountains is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading White Mountains Insurance backward and forwards among themselves. White Mountains' institutional investor refers to the entity that pools money to purchase White Mountains' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | State Street Corp | 2024-06-30 | 52.2 K | Fiduciary Management, Inc. Of Milwaukee | 2024-06-30 | 49.4 K | Bank Of America Corp | 2024-06-30 | 41.2 K | Geode Capital Management, Llc | 2024-06-30 | 39.6 K | Reinhart Mahoney Capital Management Inc | 2024-09-30 | 39.4 K | Select Equity Group Lp | 2024-09-30 | 34.7 K | Lord, Abbett & Co Llc | 2024-06-30 | 30.6 K | Norges Bank | 2024-06-30 | 30.1 K | Spears Abacus Advisors Llc | 2024-09-30 | 28.9 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 369.9 K | Vanguard Group Inc | 2024-09-30 | 250.8 K |
White Mountains' market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 5 B.Market Cap |
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White Mountains' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.04 | |
| Return On Capital Employed | 0.02 | 0.02 | |
| Return On Assets | 0.06 | 0.04 | |
| Return On Equity | 0.12 | 0.10 |
Determining White Mountains' profitability involves analyzing its financial statements and using various financial metrics to determine if White Mountains is a good buy. For example, gross profit margin measures White Mountains' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of White Mountains' profitability and make more informed investment decisions.
Evaluate White Mountains' management efficiency
White Mountains Insurance has Return on Asset of 0.0692 % which means that on every $100 spent on assets, it made $0.0692 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1637 %, implying that it generated $0.1637 on every 100 dollars invested. White Mountains' management efficiency ratios could be used to measure how well White Mountains manages its routine affairs as well as how well it operates its assets and liabilities. As of the 22nd of November 2024, Return On Tangible Assets is likely to drop to 0.04. In addition to that, Return On Capital Employed is likely to drop to 0.02. At this time, White Mountains' Total Assets are very stable compared to the past year. As of the 22nd of November 2024, Other Assets is likely to grow to about 6 B, while Non Currrent Assets Other are likely to drop (1.3 B).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 1.8 K | 1.9 K | |
| Tangible Book Value Per Share | 1.7 K | 1.7 K | |
| Enterprise Value Over EBITDA | 6.96 | 6.39 | |
| Price Book Value Ratio | 0.90 | 1.28 | |
| Enterprise Value Multiple | 6.96 | 6.39 | |
| Price Fair Value | 0.90 | 1.28 | |
| Enterprise Value | 3.9 B | 3.4 B |
Understanding the operational decisions made by White Mountains management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.
Dividend Yield 0.0005 | Forward Dividend Yield 0.0005 | Forward Dividend Rate 1 | Beta 0.428 |
Basic technical analysis of White Stock
As of the 22nd of November, White Mountains maintains the Market Risk Adjusted Performance of 0.1433, downside deviation of 1.17, and Mean Deviation of 1.01. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of White Mountains Insurance, as well as the relationship between them. Please check out White Mountains Insurance coefficient of variation, maximum drawdown, as well as the relationship between the Maximum Drawdown and skewness to decide if White Mountains Insurance is priced fairly, providing market reflects its latest price of 1971.32 per share. Given that White Mountains Insurance has jensen alpha of 0.0503, we strongly advise you to confirm White Mountains Insurance's prevalent market performance to make sure the company can sustain itself at a future point.White Mountains' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific White Mountains insiders, such as employees or executives, is commonly permitted as long as it does not rely on White Mountains' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases White Mountains insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Yi Steven over two months ago Acquisition by Yi Steven of 165 shares of White Mountains subject to Rule 16b-3 | ||
Reid Campbell over two months ago Disposition of 930 shares by Reid Campbell of White Mountains at 1000.66 subject to Rule 16b-3 | ||
Robert Seelig over two months ago Disposition of 9 shares by Robert Seelig of White Mountains at 1505.01 subject to Rule 16b-3 | ||
George Rountree over three months ago Disposition of 1068 shares by George Rountree of White Mountains at 1414.33 subject to Rule 16b-3 | ||
Harrison Giles E over three months ago Disposition of tradable shares by Harrison Giles E of White Mountains subject to Rule 16b-3 | ||
Hicks Weston M over six months ago Acquisition by Hicks Weston M of 230 shares of White Mountains subject to Rule 16b-3 | ||
Reid Campbell over six months ago Disposition of tradable shares by Reid Campbell of White Mountains subject to Rule 16b-3 | ||
Reid Campbell over six months ago Acquisition by Reid Campbell of tradable shares of White Mountains subject to Rule 16b-3 |
White Mountains' Outstanding Corporate Bonds
White Mountains issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. White Mountains Insurance uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most White bonds can be classified according to their maturity, which is the date when White Mountains Insurance has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View |
Understand White Mountains' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing White Mountains' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0819 | |||
| Market Risk Adjusted Performance | 0.1433 | |||
| Mean Deviation | 1.01 | |||
| Semi Deviation | 1.01 | |||
| Downside Deviation | 1.17 | |||
| Coefficient Of Variation | 977.38 | |||
| Standard Deviation | 1.47 | |||
| Variance | 2.15 | |||
| Information Ratio | 0.0373 | |||
| Jensen Alpha | 0.0503 | |||
| Total Risk Alpha | (0.03) | |||
| Sortino Ratio | 0.0467 | |||
| Treynor Ratio | 0.1333 | |||
| Maximum Drawdown | 7.13 | |||
| Value At Risk | (1.73) | |||
| Potential Upside | 2.44 | |||
| Downside Variance | 1.37 | |||
| Semi Variance | 1.03 | |||
| Expected Short fall | (1.15) | |||
| Skewness | 1.18 | |||
| Kurtosis | 4.04 |
| Risk Adjusted Performance | 0.0819 | |||
| Market Risk Adjusted Performance | 0.1433 | |||
| Mean Deviation | 1.01 | |||
| Semi Deviation | 1.01 | |||
| Downside Deviation | 1.17 | |||
| Coefficient Of Variation | 977.38 | |||
| Standard Deviation | 1.47 | |||
| Variance | 2.15 | |||
| Information Ratio | 0.0373 | |||
| Jensen Alpha | 0.0503 | |||
| Total Risk Alpha | (0.03) | |||
| Sortino Ratio | 0.0467 | |||
| Treynor Ratio | 0.1333 | |||
| Maximum Drawdown | 7.13 | |||
| Value At Risk | (1.73) | |||
| Potential Upside | 2.44 | |||
| Downside Variance | 1.37 | |||
| Semi Variance | 1.03 | |||
| Expected Short fall | (1.15) | |||
| Skewness | 1.18 | |||
| Kurtosis | 4.04 |
Consider White Mountains' intraday indicators
White Mountains intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of White Mountains stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 127.92 | |||
| Daily Balance Of Power | 0.7719 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 1954.27 | |||
| Day Typical Price | 1959.95 | |||
| Market Facilitation Index | 0.0046 | |||
| Price Action Indicator | 30.22 | |||
| Period Momentum Indicator | 26.33 | |||
| Relative Strength Index | 61.94 |
White Mountains Corporate Filings
| 12th of November 2024 Other Reports | ViewVerify | |
8K | 6th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 29th of August 2024 Other Reports | ViewVerify | |
F3 | 10th of June 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
White Stock media impact
Far too much social signal, news, headlines, and media speculation about White Mountains that are available to investors today. That information is available publicly through White media outlets and privately through word of mouth or via White internal channels. However, regardless of the origin, that massive amount of White data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of White Mountains news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of White Mountains relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to White Mountains' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive White Mountains alpha.
White Mountains Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards White Mountains can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
White Mountains Corporate Directors
| Philip Gelston | Independent Director | Profile | |
| Peter Carlson | Independent Director | Profile | |
| Mary Choksi | Independent Director | Profile | |
| Edith Holiday | Independent Director | Profile |
Already Invested in White Mountains Insurance?
The danger of trading White Mountains Insurance is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of White Mountains is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than White Mountains. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile White Mountains Insurance is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether White Mountains Insurance is a strong investment it is important to analyze White Mountains' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact White Mountains' future performance. For an informed investment choice regarding White Stock, refer to the following important reports: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in White Mountains Insurance. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of White Mountains. If investors know White will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about White Mountains listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 6.582 | Dividend Share 1 | Earnings Share 252.53 | Revenue Per Share 1.1 K | Quarterly Revenue Growth 0.835 |
The market value of White Mountains Insurance is measured differently than its book value, which is the value of White that is recorded on the company's balance sheet. Investors also form their own opinion of White Mountains' value that differs from its market value or its book value, called intrinsic value, which is White Mountains' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because White Mountains' market value can be influenced by many factors that don't directly affect White Mountains' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between White Mountains' value and its price, as these two are different measures arrived at by various means. Investors typically determine if White Mountains is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, White Mountains' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.