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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Markel Corporation

(

MKL

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Markel Corporation as such a stock due to the following factors:

  • MKL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $28.7 million.
  • MKL has traded 86,008 shares today.
  • MKL is trading at a new lifetime high.

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More details on MKL:

Markel Corporation markets and underwrites specialty insurance products in the United States and internationally. It operates in three segments: Excess and Surplus Lines, Specialty Admitted, and London Insurance Market. MKL has a PE ratio of 26.3. Currently there is 1 analyst that rates Markel Corporation a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Recommends

The average volume for Markel Corporation has been 48,000 shares per day over the past 30 days. Markel has a market cap of $7.9 billion and is part of the financial sector and insurance industry. The stock has a beta of 0.72 and a short float of 1.2% with 2.12 days to cover. Shares are up 30.1% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Markel Corporation as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • MKL's very impressive revenue growth greatly exceeded the industry average of 9.0%. Since the same quarter one year prior, revenues leaped by 54.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 124.39% to $302.49 million when compared to the same quarter last year. In addition, MARKEL CORP has also vastly surpassed the industry average cash flow growth rate of -23.45%.
  • Despite currently having a low debt-to-equity ratio of 0.35, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Insurance industry average, but is greater than that of the S&P 500. The net income increased by 32.1% when compared to the same quarter one year prior, rising from $49.65 million to $65.60 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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