New Lifetime High Reached: Markel Corporation (MKL)

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.

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 $34.5 million.
  • MKL has traded 373 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 through three segments: U.S. Insurance, International Insurance, and Reinsurance. The U.S. MKL has a PE ratio of 27. Currently there is 1 analyst that rates Markel Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Markel Corporation has been 40,600 shares per day over the past 30 days. Markel has a market cap of $11.2 billion and is part of the financial sector and insurance industry. The stock has a beta of 1.03 and a short float of 1.8% with 6.15 days to cover. Shares are up 17.8% year-to-date as of the close of trading on Tuesday.

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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 revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 5.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although MKL's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 117.7% when compared to the same quarter one year prior, rising from $87.72 million to $190.99 million.
  • Net operating cash flow has slightly increased to $22.83 million or 1.85% when compared to the same quarter last year. Despite an increase in cash flow, MARKEL CORP's cash flow growth rate is still lower than the industry average growth rate of 21.66%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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