📊 WTM Key Takeaways
Is White Mountains Insurance Group Ltd. (WTM) a Good Investment?
White Mountains demonstrates exceptional operational profitability with 35.6% operating margins and 29.6% net margins, coupled with a fortress balance sheet featuring 0.15x debt-to-equity leverage and 16.9x interest coverage. However, the significant disconnect between 66.8% revenue growth and only 1.5% net income growth suggests margin pressures or acquisition integration challenges warranting careful monitoring of earnings quality.
Why Buy White Mountains Insurance Group Ltd. Stock? WTM Key Strengths
- Outstanding profitability margins (35.6% operating margin, 29.6% net margin) indicating strong pricing power and operational efficiency
- Fortress balance sheet with minimal leverage (0.15x debt/equity), exceptional interest coverage (16.9x), and outstanding free cash flow generation ($547.8M with only $2.7M capex)
- Superior return metrics with 20.4% ROE and 9.0% ROA demonstrating excellent capital deployment and shareholder returns
WTM Stock Risks: White Mountains Insurance Group Ltd. Investment Risks
- Significant earnings quality concern: 66.8% revenue growth translating to only 1.5% net income growth indicates margin compression or operational headwinds
- EPS growth of 379.1% driven by share repurchases rather than underlying earnings growth masks stagnant fundamental profit momentum
- Limited transparency on insurance underwriting metrics (combined ratio, loss ratios) and sustainability of premium growth dynamics
Key Metrics to Watch
- Combined ratio trends and underwriting profitability as primary insurance operations health indicator
- Net profit margin direction and root causes of revenue-to-earnings disconnect
- Organic versus acquisition-driven revenue breakdown and integration execution
White Mountains Insurance Group Ltd. (WTM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
WTM Profit Margin, ROE & Profitability Analysis
WTM vs Finance Sector: How White Mountains Insurance Group Ltd. Compares
How White Mountains Insurance Group Ltd. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is White Mountains Insurance Group Ltd. Stock Overvalued? WTM Valuation Analysis 2026
Based on fundamental analysis, White Mountains Insurance Group Ltd. appears fundamentally strong relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
White Mountains Insurance Group Ltd. Balance Sheet: WTM Debt, Cash & Liquidity
WTM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: White Mountains Insurance Group Ltd.'s revenue has shown modest growth of 7% over the 5-year period. The most recent EPS of $198.60 reflects profitable operations.
WTM Revenue Growth, EPS Growth & YoY Performance
WTM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $839.1M | $113.8M | $44.18 |
| Q2 2025 | $395.4M | -$54.6M | $-21.24 |
| Q1 2025 | $577.8M | $33.9M | $13.19 |
| Q3 2024 | $519.6M | $23.6M | $9.19 |
| Q2 2024 | $378.4M | $19.6M | $7.65 |
| Q1 2024 | $531.9M | $179.5M | $69.83 |
| Q3 2023 | $383.2M | $23.6M | $9.19 |
| Q2 2023 | $76.7M | $19.6M | $7.65 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
White Mountains Insurance Group Ltd. Dividends, Buybacks & Capital Allocation
WTM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for White Mountains Insurance Group Ltd. (CIK: 0000776867)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WTM
What is the AI rating for WTM?
White Mountains Insurance Group Ltd. (WTM) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WTM's key strengths?
Claude: Outstanding profitability margins (35.6% operating margin, 29.6% net margin) indicating strong pricing power and operational efficiency. Fortress balance sheet with minimal leverage (0.15x debt/equity), exceptional interest coverage (16.9x), and outstanding free cash flow generation ($547.8M with only $2.7M capex).
What are the risks of investing in WTM?
Claude: Significant earnings quality concern: 66.8% revenue growth translating to only 1.5% net income growth indicates margin compression or operational headwinds. EPS growth of 379.1% driven by share repurchases rather than underlying earnings growth masks stagnant fundamental profit momentum.
What is WTM's revenue and growth?
White Mountains Insurance Group Ltd. reported revenue of $3.7B.
Does WTM pay dividends?
White Mountains Insurance Group Ltd. pays dividends, with $2.6M distributed to shareholders in the trailing twelve months.
Where can I find WTM SEC filings?
Official SEC filings for White Mountains Insurance Group Ltd. (CIK: 0000776867) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WTM's EPS?
White Mountains Insurance Group Ltd. has a diluted EPS of $430.14.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WTM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, White Mountains Insurance Group Ltd. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is WTM stock overvalued or undervalued?
Valuation metrics for WTM: ROE of 20.4% (sector avg: 12%), net margin of 29.6% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy WTM stock in 2026?
Our dual AI analysis gives White Mountains Insurance Group Ltd. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is WTM's free cash flow?
White Mountains Insurance Group Ltd.'s operating cash flow is $550.5M, with capital expenditures of $2.7M. FCF margin is 14.7%.
How does WTM compare to other Finance stocks?
Vs Finance sector averages: Net margin 29.6% (avg: 25%), ROE 20.4% (avg: 12%), current ratio N/A (avg: 1.2).