TRAVELERS COS INC/THE (TRV) Stock Fundamental Analysis
USA - NYSE:TRV - US89417E1091 - Common Stock
282.39 USD
+2.58 (+0.92%)
282.64 USD
+0.25 (+0.09%)
Overall TRV gets a fundamental rating of 6 out of 10. We evaluated TRV against 146 industry peers in the Insurance industry. TRV has an excellent profitability rating, but 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.
TRV had a positive operating cash flow in the past year.
TRV had positive earnings in each of the past 5 years.
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 4.06%, TRV is in the better half of the industry, outperforming 77.40% of the companies in the same industry.
TRV has a better Return On Equity (18.45%) than 83.56% of its industry peers.
TRV's Return On Invested Capital of 4.64% is fine compared to the rest of the industry. TRV outperforms 77.40% 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 4.51%.
The 3 year average ROIC (3.24%) for TRV is below the current ROIC(4.64%), indicating increased profibility in the last year.
| 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 69.86% 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 69.18% of its industry peers.
TRV's Operating Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for TRV has been reduced compared to 1 year ago.
Compared to 5 years ago, TRV has less shares outstanding
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 73.97% 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.
Looking at the Debt to Equity ratio, with a value of 0.29, TRV is in line with its industry, outperforming 57.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.56
WACC8.23%
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.
TRV shows a small growth in Revenue. In the last year, the Revenue has grown by 6.74%.
The Revenue has been growing by 8.01% on average over the past years. This is quite good.
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.
TRV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.60% yearly.
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.
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
A Price/Earnings ratio of 10.98 indicates a reasonable valuation of TRV.
TRV's Price/Earnings ratio is in line with the industry average.
TRV is valuated cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.47, the valuation of TRV can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as TRV.
TRV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 10.47 |
4.2 Price Multiples
TRV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TRV is cheaper than 81.51% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRV indicates a somewhat cheap valuation: TRV is cheaper than 67.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.31 | ||
| EV/EBITDA | 4.56 |
4.3 Compensation for Growth
TRV's 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)0.61
PEG (5Y)0.62
EPS Next 2Y11.76%
EPS Next 3Y9.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, TRV has a reasonable but not impressive dividend return.
TRV's Dividend Yield is comparable with the industry average which is at 3.45.
Compared to the average S&P500 Dividend Yield of 2.36, TRV is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of TRV has a limited annual growth rate of 5.20%.
TRV has paid a dividend for at least 10 years, which is 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.
TRV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.76%
EPS Next 2Y11.76%
EPS Next 3Y9.17%
282.39
+2.58 (+0.92%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.41%
Inst Owner Change-1.09%
Ins Owners0.35%
Ins Owner Change-1.62%
Market Cap62.99B
Revenue(TTM)48.41B
Net Income(TTM)5.83B
Analysts68.67
Price Target302 (6.94%)
Short Float %1.61%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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)1.75%
PT rev (3m)2.31%
EPS NQ rev (1m)3.55%
EPS NQ rev (3m)1.43%
EPS NY rev (1m)13.75%
EPS NY rev (3m)32.89%
Revenue NQ rev (1m)-2.14%
Revenue NQ rev (3m)-2%
Revenue NY rev (1m)-1.31%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 10.47 | ||
| P/S | 1.3 | ||
| P/FCF | 6.31 | ||
| P/OCF | 6.31 | ||
| P/B | 1.99 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 4.56 |
EPS(TTM)25.71
EY9.1%
EPS(NY)26.96
Fwd EY9.55%
FCF(TTM)44.76
FCFY15.85%
OCF(TTM)44.76
OCFY15.85%
SpS217
BVpS141.71
TBVpS121.03
PEG (NY)0.61
PEG (5Y)0.62
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
WACC8.23%
ROIC/WACC0.56
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 10.98 and the Price/Book (PB) ratio is 1.99.
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.