TRAVELERS COS INC/THE (TRV)
US89417E1091 - Common Stock
Overall TRV gets a fundamental rating of 4 out of 10. We evaluated TRV against 140 industry peers in the Insurance industry. There are concerns on the financial health of TRV while its profitability can be described as average. TRV has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TRV was profitable.
TRV had a positive operating cash flow in the past year.
In the past 5 years TRV has always been profitable.
Each year in the past 5 years TRV had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.44%, TRV is in the better half of the industry, outperforming 61.59% of the companies in the same industry.
TRV has a Return On Equity of 12.45%. This is comparable to the rest of the industry: TRV outperforms 57.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.94%, TRV is in the better half of the industry, outperforming 61.59% of the companies in the same industry.
TRV had an Average Return On Invested Capital over the past 3 years of 3.04%. This is in line with the industry average of 3.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 12.45% | ||
| ROIC | 2.94% |
ROA(3y)2.6%
ROA(5y)2.49%
ROE(3y)12.53%
ROE(5y)11.36%
ROIC(3y)3.04%
ROIC(5y)2.96%
1.3 Margins
With a Profit Margin value of 7.26%, TRV perfoms like the industry average, outperforming 52.90% of the companies in the same industry.
TRV's Profit Margin has declined in the last couple of years.
TRV has a Operating Margin of 9.82%. This is comparable to the rest of the industry: TRV outperforms 49.28% of its industry peers.
TRV's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.82% | ||
| PM (TTM) | 7.26% | ||
| GM | N/A |
OM growth 3Y-7.1%
OM growth 5Y-3.65%
PM growth 3Y-4.95%
PM growth 5Y-2.79%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRV is destroying value.
Compared to 1 year ago, TRV has less shares outstanding
TRV has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TRV has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of TRV is 0.98, which is an excellent value as it means it would take TRV, only 0.98 years of fcf income to pay off all of its debts.
TRV's Debt to FCF ratio of 0.98 is fine compared to the rest of the industry. TRV outperforms 68.12% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that TRV is not too dependend on debt financing.
The Debt to Equity ratio of TRV (0.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | N/A |
ROIC/WACC0.36
WACC8.22%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.47% over the past year.
The Earnings Per Share has been growing slightly by 6.47% on average over the past years.
TRV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.42%.
Measured over the past years, TRV shows a small growth in Revenue. The Revenue has been growing by 6.44% on average per year.
EPS 1Y (TTM)20.47%
EPS 3Y5.38%
EPS 5Y6.47%
EPS Q2Q%46.11%
Revenue 1Y (TTM)13.42%
Revenue growth 3Y8.89%
Revenue growth 5Y6.44%
Sales Q2Q%4.91%
3.2 Future
TRV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.83% yearly.
Based on estimates for the next years, TRV will show a small growth in Revenue. The Revenue will grow by 3.22% on average per year.
EPS Next Y50.1%
EPS Next 2Y31.52%
EPS Next 3Y24.27%
EPS Next 5Y13.83%
Revenue Next Year9.87%
Revenue Next 2Y8.64%
Revenue Next 3Y7.39%
Revenue Next 5Y3.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TRV is valuated correctly with a Price/Earnings ratio of 15.01.
Compared to the rest of the industry, the Price/Earnings ratio of TRV is on the same level as its industry peers.
TRV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.39.
The Price/Forward Earnings ratio is 9.73, which indicates a very decent valuation of TRV.
TRV's Price/Forward Earnings ratio is in line with the industry average.
TRV is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.01 | ||
| Fwd PE | 9.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRV is valued a bit cheaper than the industry average as 77.54% of the companies are valued more expensively.
63.04% of the companies in the same industry are more expensive than TRV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.78 | ||
| EV/EBITDA | 4.78 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TRV's earnings are expected to grow with 24.27% in the coming years.
PEG (NY)0.3
PEG (5Y)2.32
EPS Next 2Y31.52%
EPS Next 3Y24.27%
5. Dividend
5.1 Amount
TRV has a Yearly Dividend Yield of 2.03%. Purely for dividend investing, there may be better candidates out there.
TRV's Dividend Yield is comparable with the industry average which is at 4.50.
TRV's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
5.2 History
The dividend of TRV has a limited annual growth rate of 5.33%.
TRV has been paying a dividend for at least 10 years, so it has a reliable track record.
TRV has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.33%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
29.60% of the earnings are spent on dividend by TRV. This is a low number and sustainable payout ratio.
TRV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP29.6%
EPS Next 2Y31.52%
EPS Next 3Y24.27%
TRAVELERS COS INC/THE
NYSE:TRV (6/14/2024, 7:04:00 PM)
After market: 205.85 0 (0%)205.85
-1.22 (-0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap47.14B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.01 | ||
| Fwd PE | 9.73 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.3
PEG (5Y)2.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 12.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.82% | ||
| PM (TTM) | 7.26% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)20.47%
EPS 3Y5.38%
EPS 5Y
EPS Q2Q%
EPS Next Y50.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.42%
Revenue growth 3Y8.89%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y