TRAVELERS COS INC/THE (TRV) Stock Fundamental Analysis
USA - NYSE:TRV - US89417E1091 - Common Stock
261.57 USD
-7.88 (-2.92%)
260.5 USD
-1.07 (-0.41%)
Overall TRV gets a fundamental rating of 5 out of 10. We evaluated TRV against 145 industry peers in the Insurance industry. TRV has an excellent profitability rating, but there are some minor concerns on its financial health. TRV has a correct valuation and a medium growth rate.
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.
TRV had positive earnings in each of the past 5 years.
In the past 5 years TRV always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.75%, TRV is in the better half of the industry, outperforming 76.55% of the companies in the same industry.
TRV's Return On Equity of 17.64% is amongst the best of the industry. TRV outperforms 82.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.31%, TRV is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
TRV had an Average Return On Invested Capital over the past 3 years of 3.24%. This is in line with the industry average of 4.40%.
The last Return On Invested Capital (4.31%) for TRV is above the 3 year average (3.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 17.64% | ||
| ROIC | 4.31% |
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
Looking at the Profit Margin, with a value of 10.88%, TRV is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
In the last couple of years the Profit Margin of TRV has grown nicely.
With a decent Operating Margin value of 14.43%, TRV is doing good in the industry, outperforming 66.90% of the companies in the same industry.
TRV's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.43% | ||
| PM (TTM) | 10.88% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRV is destroying value.
The number of shares outstanding for TRV has been reduced compared to 1 year ago.
TRV has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TRV has an improved debt to assets ratio.
2.2 Solvency
TRV has a debt to FCF ratio of 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
TRV has a Debt to FCF ratio of 0.83. This is in the better half of the industry: TRV outperforms 73.79% of its industry peers.
TRV has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
TRV's Debt to Equity ratio of 0.27 is in line compared to the rest of the industry. TRV outperforms 57.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | N/A |
ROIC/WACC0.53
WACC8.14%
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.
The Revenue has grown by 12.23% in the past year. This is quite good.
Measured over the past years, TRV shows a quite strong growth in Revenue. The Revenue has been growing by 8.01% on average per year.
EPS 1Y (TTM)32.19%
EPS 3Y15.59%
EPS 5Y17.6%
EPS Q2Q%55.34%
Revenue 1Y (TTM)12.23%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%9.95%
3.2 Future
Based on estimates for the next years, TRV will show a small growth in Earnings Per Share. The EPS will grow by 2.64% on average per year.
TRV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.60% yearly.
EPS Next Y3.67%
EPS Next 2Y9.44%
EPS Next 3Y8.3%
EPS Next 5Y2.64%
Revenue Next Year4.15%
Revenue Next 2Y4.17%
Revenue Next 3Y4.15%
Revenue Next 5Y3.6%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.17, which indicates a very decent valuation of TRV.
Compared to the rest of the industry, the Price/Earnings ratio of TRV indicates a somewhat cheap valuation: TRV is cheaper than 60.69% of the companies listed in the same industry.
TRV is valuated cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.12, which indicates a very decent valuation of TRV.
TRV's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, TRV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 10.12 |
4.2 Price Multiples
TRV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TRV is cheaper than 82.07% of the companies in the same industry.
66.90% 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 | 6.11 | ||
| EV/EBITDA | 4.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TRV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.78
PEG (5Y)0.58
EPS Next 2Y9.44%
EPS Next 3Y8.3%
5. Dividend
5.1 Amount
TRV has a Yearly Dividend Yield of 1.63%. Purely for dividend investing, there may be better candidates out there.
TRV's Dividend Yield is comparable with the industry average which is at 3.54.
TRV's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.2%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
TRV pays out 18.59% of its income as dividend. This is a sustainable payout ratio.
The dividend of TRV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.59%
EPS Next 2Y9.44%
EPS Next 3Y8.3%
261.57
-7.88 (-2.92%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.41%
Inst Owner Change0.17%
Ins Owners0.35%
Ins Owner Change-1.64%
Market Cap58.89B
Analysts68.67
Price Target296.8 (13.47%)
Short Float %1.79%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend4.18
Dividend Growth(5Y)5.2%
DP18.59%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)109.41%
Min EPS beat(2)76.17%
Max EPS beat(2)142.66%
EPS beat(4)4
Avg EPS beat(4)75.39%
Min EPS beat(4)36.67%
Max EPS beat(4)142.66%
EPS beat(8)6
Avg EPS beat(8)40.32%
EPS beat(12)7
Avg EPS beat(12)21.1%
EPS beat(16)11
Avg EPS beat(16)24.12%
Revenue beat(2)0
Avg Revenue beat(2)-3.32%
Min Revenue beat(2)-3.83%
Max Revenue beat(2)-2.8%
Revenue beat(4)0
Avg Revenue beat(4)-2.56%
Min Revenue beat(4)-3.83%
Max Revenue beat(4)-1.1%
Revenue beat(8)1
Avg Revenue beat(8)-2.2%
Revenue beat(12)5
Avg Revenue beat(12)0.1%
Revenue beat(16)9
Avg Revenue beat(16)2.2%
PT rev (1m)0.18%
PT rev (3m)2.39%
EPS NQ rev (1m)0.2%
EPS NQ rev (3m)7.69%
EPS NY rev (1m)0.07%
EPS NY rev (3m)16.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 10.12 | ||
| P/S | 1.23 | ||
| P/FCF | 6.11 | ||
| P/OCF | 6.11 | ||
| P/B | 1.99 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 4.47 |
EPS(TTM)25.71
EY9.83%
EPS(NY)25.86
Fwd EY9.89%
FCF(TTM)42.79
FCFY16.36%
OCF(TTM)42.79
OCFY16.36%
SpS212.52
BVpS131.12
TBVpS110.55
PEG (NY)2.78
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 17.64% | ||
| ROCE | 5.1% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.34% | ||
| ROICexgc | 5% | ||
| OM | 14.43% | ||
| PM (TTM) | 10.88% | ||
| GM | N/A | ||
| FCFM | 20.13% |
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%
ROICexcg growth 3Y6.65%
ROICexcg 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-Score9
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | 0.54 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 17.62 | ||
| Cash Conversion | 65.21% | ||
| Profit Quality | 185.04% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.14%
ROIC/WACC0.53
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 Y3.67%
EPS Next 2Y9.44%
EPS Next 3Y8.3%
EPS Next 5Y2.64%
Revenue 1Y (TTM)12.23%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%9.95%
Revenue Next Year4.15%
Revenue Next 2Y4.17%
Revenue Next 3Y4.15%
Revenue Next 5Y3.6%
EBIT growth 1Y40.28%
EBIT growth 3Y11.1%
EBIT growth 5Y13.56%
EBIT Next Year24.28%
EBIT Next 3Y9.96%
EBIT Next 5YN/A
FCF growth 1Y50.87%
FCF growth 3Y7.65%
FCF growth 5Y11.76%
OCF growth 1Y50.87%
OCF growth 3Y7.65%
OCF growth 5Y11.76%