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White Mountains Insurance Group Ltd. (WTM) Fundamental Analysis & AI Grade 2026

WTM NYSE Fire, Marine & Casualty Insurance D0 CIK: 0000776867
Updated This Month • Analysis: May 8, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
68% Confidence
N/A
C
68% Conf
Pending
Analysis scheduled

📊 WTM Key Takeaways

Revenue: $517.8M
Net Margin: -5.3%
Free Cash Flow: $27.8M
Current Ratio: N/A
Debt/Equity: 0.16x
EPS: $-12.59
AI Grade: C with 68% confidence
White Mountains Insurance Group Ltd. (WTM) receives a C fundamental grade with 68% confidence from our AI analysis based on SEC 10-K filings. With revenue of $517.8M, net profit margin of -5.3%, and return on equity (ROE) of -0.5%, White Mountains Insurance Group Ltd. demonstrates mixed fundamentals in the Finance sector. Below is our complete WTM stock analysis for 2026.

Is White Mountains Insurance Group Ltd. (WTM) a Good Investment?

Claude

Despite impressive 66.8% YoY revenue growth, White Mountains Insurance is operationally unprofitable with negative net income of -$27.2M and negative margins across all levels (Operating: -4.9%, Net: -5.3%). The company cannot cover interest expenses from operations (Interest Coverage: -1.3x) and exhibits poor returns on equity (-0.5%) and assets (-0.2%), indicating fundamental operational challenges despite strong topline expansion.

White Mountains Insurance Group Ltd. Key Strengths (WTM)

Claude
  • + Exceptional revenue growth of 66.8% YoY demonstrates market traction or successful expansion strategy
  • + Conservative capital structure with low leverage (Debt/Equity: 0.16x) provides financial flexibility and cushion
  • + Positive free cash flow of $27.8M (5.4% FCF margin) shows underlying cash generation despite net losses

WTM Stock Risks: White Mountains Insurance Group Ltd. Investment Risks

Claude
  • ! Persistent operational unprofitability with negative operating income of -$25.5M and deteriorating net margins of -5.3%
  • ! Negative interest coverage ratio (-1.3x) indicates inability to service debt obligations from core operations
  • ! Severely negative returns on equity (-0.5%) and assets (-0.2%) suggest capital inefficiency and unsustainable business model execution

Key Metrics to Watch

Claude
  • * Path to operating profitability and trend reversal in operating margins
  • * Combined ratio and claims experience in insurance underwriting operations
  • * Sustainability of cash flow generation and debt servicing capacity

White Mountains Insurance Group Ltd. (WTM) Financial Metrics & Key Ratios

Revenue
$517.8M
Net Income
$-27.2M
EPS (Diluted)
$-12.59
Free Cash Flow
$27.8M
Total Assets
$13.2B
Cash Position
$137.0M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

WTM Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin -4.9%
Net Margin -5.3%
ROE -0.5%
ROA -0.2%
FCF Margin 5.4%

WTM vs Finance Sector: How White Mountains Insurance Group Ltd. Compares

How White Mountains Insurance Group Ltd. compares to Finance sector averages

Net Margin
WTM -5.3%
vs
Sector Avg 25.0%
WTM Sector
ROE
WTM -0.5%
vs
Sector Avg 12.0%
WTM Sector
Current Ratio
WTM 0.0x
vs
Sector Avg 1.2x
WTM Sector
Debt/Equity
WTM 0.2x
vs
Sector Avg 2.0x
WTM Sector

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. has mixed fundamental signals relative to the Finance sector in 2026.

Return on Equity
-0.5%
Sector avg: 12%
Net Profit Margin
-5.3%
Sector avg: 25%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.16x
Sector avg: 2x

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

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.16x
Debt/Assets
53.1%
Interest Coverage
-1.32x
Long-term Debt
$834.8M

WTM Revenue & Earnings Growth: 5-Year Financial Trend

WTM 5-year financial data: Year 2019: Revenue $401.2M, Net Income N/A, EPS N/A. Year 2020: Revenue $401.2M, Net Income N/A, EPS N/A. Year 2021: Revenue $427.5M, Net Income N/A, EPS $130.27.
Revenue
Net Income
EPS (right axis)

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

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
5.4%
Free cash flow / Revenue

WTM Quarterly Earnings & Performance

Quarterly financial performance data for White Mountains Insurance Group Ltd. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $517.8M -$27.2M $-12.59
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

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

Operating Cash Flow
$30.5M
Cash generated from operations
Stock Buybacks
$25.9M
Shares repurchased (TTM)
Capital Expenditures
$2.7M
Investment in assets
Dividends Paid
$2.4M
Returned to shareholders

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

Date Form Document Action
May 22, 2026 4 xslF345X06/form4.xml View →
May 22, 2026 4 xslF345X06/form4.xml View →
May 22, 2026 4 xslF345X06/form4.xml View →
May 22, 2026 4 xslF345X06/form4.xml View →
May 22, 2026 4 xslF345X06/form4.xml View →

Frequently Asked Questions about WTM

What is the AI rating for WTM?

White Mountains Insurance Group Ltd. (WTM) has an AI grade of C with 68% confidence, based on fundamental analysis of SEC EDGAR filings.

What are WTM's key strengths?

Claude: Exceptional revenue growth of 66.8% YoY demonstrates market traction or successful expansion strategy. Conservative capital structure with low leverage (Debt/Equity: 0.16x) provides financial flexibility and cushion.

What are the risks of investing in WTM?

Claude: Persistent operational unprofitability with negative operating income of -$25.5M and deteriorating net margins of -5.3%. Negative interest coverage ratio (-1.3x) indicates inability to service debt obligations from core operations.

What is WTM's revenue and growth?

White Mountains Insurance Group Ltd. reported revenue of $517.8M.

Does WTM pay dividends?

White Mountains Insurance Group Ltd. pays dividends, with $2.4M 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 $-12.59.

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 grade reflects both perspectives for balanced insights.

What is WTM's fundamental grade?

Based on our AI fundamental analysis in June 2026, White Mountains Insurance Group Ltd. has a C grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is WTM stock overvalued or undervalued?

Valuation metrics for WTM: ROE of -0.5% (sector avg: 12%), net margin of -5.3% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.

What is WTM's AI grade for 2026?

Our dual AI analysis gives White Mountains Insurance Group Ltd. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is WTM's free cash flow?

White Mountains Insurance Group Ltd.'s operating cash flow is $30.5M, with capital expenditures of $2.7M. FCF margin is 5.4%.

How does WTM compare to other Finance stocks?

Vs Finance sector averages: Net margin -5.3% (avg: 25%), ROE -0.5% (avg: 12%), current ratio N/A (avg: 1.2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 8, 2026 | Data as of: 2026-03-31 | Powered by Claude AI