TRAVELERS COS INC/THE (TRV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRV - US89417E1091 - Common Stock
294.52 USD
+0.82 (+0.28%)
294.52 USD
0 (0%)
TRV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. While TRV has a great profitability rating, there are some minor concerns on its financial health. TRV scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year TRV was profitable.
In the past year TRV had a positive cash flow from operations.
In the past 5 years TRV has always been profitable.
TRV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TRV has a Return On Assets of 4.06%. This is in the better half of the industry: TRV outperforms 75.51% of its industry peers.
With an excellent Return On Equity value of 18.45%, TRV belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
The Return On Invested Capital of TRV (4.64%) is better than 77.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRV is in line with the industry average of 4.52%.
The last Return On Invested Capital (4.64%) for TRV is above the 3 year average (3.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 18.45% | ||
| ROIC | 4.64% |
ROA(3y)2.84%
ROA(5y)2.77%
ROE(3y)14.27%
ROE(5y)12.91%
ROIC(3y)3.24%
ROIC(5y)3.19%
1.3 Margins
TRV has a better Profit Margin (12.05%) than 65.31% of its industry peers.
TRV's Profit Margin has improved in the last couple of years.
TRV has a Operating Margin of 15.90%. This is in the better half of the industry: TRV outperforms 64.63% of its industry peers.
In the last couple of years the Operating Margin of TRV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.9% | ||
| PM (TTM) | 12.05% | ||
| GM | N/A |
OM growth 3Y0.94%
OM growth 5Y5.14%
PM growth 3Y0.78%
PM growth 5Y5.33%
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.
TRV has less shares outstanding than it did 1 year ago.
TRV has less shares outstanding than it did 5 years ago.
TRV has a better debt/assets ratio than last year.
2.2 Solvency
TRV has a debt to FCF ratio of 0.93. This is a very positive value and a sign of high solvency as it would only need 0.93 years to pay back of all of its debts.
TRV has a Debt to FCF ratio of 0.93. This is in the better half of the industry: TRV outperforms 71.43% of its industry peers.
TRV has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
TRV has a Debt to Equity ratio of 0.29. This is comparable to the rest of the industry: TRV outperforms 55.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.57
WACC8.15%
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 32.19% over the past year.
The Earnings Per Share has been growing by 17.60% on average over the past years. This is quite good.
Looking at the last year, TRV shows a small growth in Revenue. The Revenue has grown by 6.74% in the last year.
TRV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.01% yearly.
EPS 1Y (TTM)32.19%
EPS 3Y15.59%
EPS 5Y17.6%
EPS Q2Q%55.34%
Revenue 1Y (TTM)6.74%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%1.38%
3.2 Future
TRV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.64% yearly.
The Revenue is expected to grow by 3.60% on average over the next years.
EPS Next Y17.92%
EPS Next 2Y11.76%
EPS Next 3Y9.17%
EPS Next 5Y2.64%
Revenue Next Year2.78%
Revenue Next 2Y2.69%
Revenue Next 3Y2.99%
Revenue Next 5Y3.6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 11.46, the valuation of TRV can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TRV is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TRV to the average of the S&P500 Index (26.15), we can say TRV is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.92, the valuation of TRV can be described as very reasonable.
TRV's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TRV to the average of the S&P500 Index (36.12), we can say TRV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 10.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRV is valued cheaply inside the industry as 80.27% of the companies are valued more expensively.
TRV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRV is cheaper than 63.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.58 | ||
| EV/EBITDA | 4.73 |
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.
TRV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.64
PEG (5Y)0.65
EPS Next 2Y11.76%
EPS Next 3Y9.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.53%, TRV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.46, TRV has a dividend in line with its industry peers.
TRV's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
The dividend of TRV has a limited annual growth rate of 5.20%.
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)5.2%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
16.76% of the earnings are spent on dividend by TRV. This is a low number and sustainable payout ratio.
The dividend of TRV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.76%
EPS Next 2Y11.76%
EPS Next 3Y9.17%
294.52
+0.82 (+0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.41%
Inst Owner Change-2.67%
Ins Owners0.35%
Ins Owner Change-1.62%
Market Cap65.70B
Revenue(TTM)48.41B
Net Income(TTM)5.83B
Analysts68.67
Price Target301.69 (2.43%)
Short Float %1.65%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend4.18
Dividend Growth(5Y)5.2%
DP16.76%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)51.59%
Min EPS beat(2)27.01%
Max EPS beat(2)76.17%
EPS beat(4)4
Avg EPS beat(4)70.63%
Min EPS beat(4)27.01%
Max EPS beat(4)142.66%
EPS beat(8)7
Avg EPS beat(8)48.17%
EPS beat(12)7
Avg EPS beat(12)20.07%
EPS beat(16)11
Avg EPS beat(16)22.42%
Revenue beat(2)0
Avg Revenue beat(2)-3.31%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-2.8%
Revenue beat(4)0
Avg Revenue beat(4)-2.89%
Min Revenue beat(4)-3.83%
Max Revenue beat(4)-1.1%
Revenue beat(8)0
Avg Revenue beat(8)-2.75%
Revenue beat(12)4
Avg Revenue beat(12)-0.44%
Revenue beat(16)8
Avg Revenue beat(16)1.59%
PT rev (1m)1.65%
PT rev (3m)1.83%
EPS NQ rev (1m)2.76%
EPS NQ rev (3m)3.72%
EPS NY rev (1m)6.05%
EPS NY rev (3m)13.82%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 10.92 | ||
| P/S | 1.36 | ||
| P/FCF | 6.58 | ||
| P/OCF | 6.58 | ||
| P/B | 2.08 | ||
| P/tB | 2.43 | ||
| EV/EBITDA | 4.73 |
EPS(TTM)25.71
EY8.73%
EPS(NY)26.96
Fwd EY9.16%
FCF(TTM)44.76
FCFY15.2%
OCF(TTM)44.76
OCFY15.2%
SpS217
BVpS141.71
TBVpS121.03
PEG (NY)0.64
PEG (5Y)0.65
Graham Number286.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 18.45% | ||
| ROCE | 5.49% | ||
| ROIC | 4.64% | ||
| ROICexc | 4.67% | ||
| ROICexgc | 5.36% | ||
| OM | 15.9% | ||
| PM (TTM) | 12.05% | ||
| GM | N/A | ||
| FCFM | 20.63% |
ROA(3y)2.84%
ROA(5y)2.77%
ROE(3y)14.27%
ROE(5y)12.91%
ROIC(3y)3.24%
ROIC(5y)3.19%
ROICexc(3y)3.26%
ROICexc(5y)3.21%
ROICexgc(3y)3.79%
ROICexgc(5y)3.74%
ROCE(3y)3.82%
ROCE(5y)3.77%
ROICexgc growth 3Y6.65%
ROICexgc growth 5Y8.29%
ROICexc growth 3Y7.09%
ROICexc growth 5Y8.8%
OM growth 3Y0.94%
OM growth 5Y5.14%
PM growth 3Y0.78%
PM growth 5Y5.33%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.93 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 19.64 | ||
| Cash Conversion | 63.94% | ||
| Profit Quality | 171.24% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.15%
ROIC/WACC0.57
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)223.91%
Profit Quality(5y)223.05%
High Growth Momentum
Growth
EPS 1Y (TTM)32.19%
EPS 3Y15.59%
EPS 5Y17.6%
EPS Q2Q%55.34%
EPS Next Y17.92%
EPS Next 2Y11.76%
EPS Next 3Y9.17%
EPS Next 5Y2.64%
Revenue 1Y (TTM)6.74%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%1.38%
Revenue Next Year2.78%
Revenue Next 2Y2.69%
Revenue Next 3Y2.99%
Revenue Next 5Y3.6%
EBIT growth 1Y27.98%
EBIT growth 3Y11.1%
EBIT growth 5Y13.56%
EBIT Next Year24.28%
EBIT Next 3Y9.96%
EBIT Next 5YN/A
FCF growth 1Y43.73%
FCF growth 3Y7.65%
FCF growth 5Y11.76%
OCF growth 1Y43.73%
OCF growth 3Y7.65%
OCF growth 5Y11.76%
TRAVELERS COS INC/THE / TRV FAQ
What is the fundamental rating for TRV stock?
ChartMill assigns a fundamental rating of 6 / 10 to TRV.
Can you provide the valuation status for TRAVELERS COS INC/THE?
ChartMill assigns a valuation rating of 7 / 10 to TRAVELERS COS INC/THE (TRV). This can be considered as Undervalued.
Can you provide the profitability details for TRAVELERS COS INC/THE?
TRAVELERS COS INC/THE (TRV) has a profitability rating of 7 / 10.
What are the PE and PB ratios of TRAVELERS COS INC/THE (TRV) stock?
The Price/Earnings (PE) ratio for TRAVELERS COS INC/THE (TRV) is 11.46 and the Price/Book (PB) ratio is 2.08.
Can you provide the expected EPS growth for TRV stock?
The Earnings per Share (EPS) of TRAVELERS COS INC/THE (TRV) is expected to grow by 17.92% in the next year.