TRAVELERS COS INC/THE (TRV) Stock Fundamental Analysis
NYSE:TRV - New York Stock Exchange, Inc. - US89417E1091 - Common Stock - Currency: USD
TRV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. TRV has an average financial health and profitability rating. 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.
Each year in the past 5 years TRV has been profitable.
In the past 5 years TRV always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.12%, TRV is doing good in the industry, outperforming 69.23% of the companies in the same industry.
With a decent Return On Equity value of 15.03%, TRV is doing good in the industry, outperforming 62.94% of the companies in the same industry.
TRV has a Return On Invested Capital of 3.63%. This is in the better half of the industry: TRV outperforms 70.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRV is in line with the industry average of 4.47%.
The last Return On Invested Capital (3.63%) for TRV is above the 3 year average (3.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 15.03% | ||
| ROIC | 3.63% |
ROA(3y)2.84%
ROA(5y)2.77%
ROE(3y)14.27%
ROE(5y)12.91%
ROIC(3y)3.24%
ROIC(5y)3.19%
1.3 Margins
The Profit Margin of TRV (9.01%) is comparable to the rest of the industry.
TRV's Profit Margin has improved in the last couple of years.
TRV has a Operating Margin (12.08%) which is comparable to the rest of the industry.
TRV's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.08% | ||
| PM (TTM) | 9.01% | ||
| 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
TRV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 0.89. This is a very positive value and a sign of high solvency as it would only need 0.89 years to pay back of all of its debts.
The Debt to FCF ratio of TRV (0.89) is better than 66.43% of its industry peers.
TRV has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.28, TRV is in line with its industry, outperforming 58.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | N/A |
ROIC/WACC0.44
WACC8.27%
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 37.20% over the past year.
TRV shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.60% yearly.
TRV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.60%.
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)37.2%
EPS 3Y15.59%
EPS 5Y17.6%
EPS Q2Q%-59.28%
Revenue 1Y (TTM)9.6%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%3.27%
3.2 Future
TRV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.53% yearly.
Based on estimates for the next years, TRV will show a small growth in Revenue. The Revenue will grow by 3.75% on average per year.
EPS Next Y-12.98%
EPS Next 2Y6.86%
EPS Next 3Y7.89%
EPS Next 5Y2.53%
Revenue Next Year5.47%
Revenue Next 2Y5.67%
Revenue Next 3Y5.09%
Revenue Next 5Y3.75%
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
The Price/Earnings ratio is 14.04, which indicates a correct valuation of TRV.
Compared to the rest of the industry, the Price/Earnings ratio of TRV is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.88. TRV is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.71, the valuation of TRV can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRV is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.20. TRV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 10.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRV indicates a somewhat cheap valuation: TRV is cheaper than 79.02% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TRV is valued a bit cheaper than the industry average as 65.03% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.67 | ||
| EV/EBITDA | 4.99 |
4.3 Compensation for Growth
TRV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y6.86%
EPS Next 3Y7.89%
5. Dividend
5.1 Amount
TRV has a Yearly Dividend Yield of 1.69%.
Compared to an average industry Dividend Yield of 3.22, TRV has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.45, TRV is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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 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 22.70% 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.
DP22.7%
EPS Next 2Y6.86%
EPS Next 3Y7.89%
264.13
+0.08 (+0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.82%
Inst Owner Change1.52%
Ins Owners0.32%
Ins Owner Change5.99%
Market Cap59.84B
Analysts68
Price Target285.44 (8.07%)
Short Float %1.42%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend4.18
Dividend Growth(5Y)5.2%
DP22.7%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)89.67%
Min EPS beat(2)36.67%
Max EPS beat(2)142.66%
EPS beat(4)4
Avg EPS beat(4)62.78%
Min EPS beat(4)25.73%
Max EPS beat(4)142.66%
EPS beat(8)5
Avg EPS beat(8)18.66%
EPS beat(12)7
Avg EPS beat(12)17.19%
EPS beat(16)11
Avg EPS beat(16)22.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-3.83%
Max Revenue beat(2)-1.1%
Revenue beat(4)0
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-3.83%
Max Revenue beat(4)-1.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.6%
Revenue beat(12)6
Avg Revenue beat(12)0.62%
Revenue beat(16)10
Avg Revenue beat(16)3.08%
PT rev (1m)2.9%
PT rev (3m)4.5%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)-5.48%
EPS NY rev (1m)4.65%
EPS NY rev (3m)-12.19%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)-1.15%
Revenue NY rev (3m)-1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 10.71 | ||
| P/S | 1.27 | ||
| P/FCF | 6.67 | ||
| P/OCF | 6.67 | ||
| P/B | 2.12 | ||
| P/tB | 2.54 | ||
| EV/EBITDA | 4.99 |
EPS(TTM)18.81
EY7.12%
EPS(NY)24.65
Fwd EY9.33%
FCF(TTM)39.62
FCFY15%
OCF(TTM)39.62
OCFY15%
SpS207.49
BVpS124.43
TBVpS104.12
PEG (NY)N/A
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 15.03% | ||
| ROCE | 4.28% | ||
| ROIC | 3.63% | ||
| ROICexc | 3.65% | ||
| ROICexgc | 4.22% | ||
| OM | 12.08% | ||
| PM (TTM) | 9.01% | ||
| GM | N/A | ||
| FCFM | 19.09% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.89 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 14.52 | ||
| Cash Conversion | 66.79% | ||
| Profit Quality | 211.85% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.27%
ROIC/WACC0.44
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)37.2%
EPS 3Y15.59%
EPS 5Y17.6%
EPS Q2Q%-59.28%
EPS Next Y-12.98%
EPS Next 2Y6.86%
EPS Next 3Y7.89%
EPS Next 5Y2.53%
Revenue 1Y (TTM)9.6%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%3.27%
Revenue Next Year5.47%
Revenue Next 2Y5.67%
Revenue Next 3Y5.09%
Revenue Next 5Y3.75%
EBIT growth 1Y34.8%
EBIT growth 3Y11.1%
EBIT growth 5Y13.56%
EBIT Next Year26.57%
EBIT Next 3Y9.12%
EBIT Next 5YN/A
FCF growth 1Y44.52%
FCF growth 3Y7.65%
FCF growth 5Y11.76%
OCF growth 1Y44.52%
OCF growth 3Y7.65%
OCF growth 5Y11.76%