TRAVELERS COS INC/THE (TRV) Stock Fundamental Analysis
USA - NYSE:TRV - US89417E1091 - Common Stock
286.13 USD
+0.11 (+0.04%)
285.97 USD
-0.16 (-0.06%)
TRV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
TRV had positive earnings in the past year.
TRV had a positive operating cash flow in the past year.
In the past 5 years TRV has always 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 4.06%, TRV is doing good in the industry, outperforming 76.71% of the companies in the same industry.
TRV's Return On Equity of 18.45% is amongst the best of the industry. TRV outperforms 82.88% of its industry peers.
TRV has a Return On Invested Capital of 4.64%. This is in the better half 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
The Profit Margin of TRV (12.05%) is better than 69.18% of its industry peers.
TRV's Profit Margin has improved in the last couple of years.
The Operating Margin of TRV (15.90%) is better than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of TRV is 0.93, which is an excellent value as it means it would take TRV, only 0.93 years of fcf income to pay off all of its debts.
TRV has a better Debt to FCF ratio (0.93) than 73.97% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that TRV is not too dependend on debt financing.
TRV has a Debt to Equity ratio of 0.29. This is comparable to the rest of the industry: TRV outperforms 57.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.56
WACC8.25%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
TRV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.19%, which is quite impressive.
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%.
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
The Earnings Per Share is expected to grow by 2.64% on average over the next years.
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
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
TRV is valuated reasonably with a Price/Earnings ratio of 11.13.
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 rather cheap valuation when compared to the S&P500 average which is at 26.34.
TRV is valuated reasonably with a Price/Forward Earnings ratio of 10.61.
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 34.43. TRV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.13 | ||
| Fwd PE | 10.61 |
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.
Based on the Price/Free Cash Flow ratio, TRV is valued a bit cheaper than the industry average as 67.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.39 | ||
| EV/EBITDA | 4.61 |
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.
The decent profitability rating of TRV may justify a higher PE ratio.
PEG (NY)0.62
PEG (5Y)0.63
EPS Next 2Y11.76%
EPS Next 3Y9.17%
5. Dividend
5.1 Amount
TRV has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
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 2.36.
| 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 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.
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%
286.13
+0.11 (+0.04%)
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 Cap63.82B
Revenue(TTM)48.41B
Net Income(TTM)5.83B
Analysts68.67
Price Target302 (5.55%)
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 | 11.13 | ||
| Fwd PE | 10.61 | ||
| P/S | 1.32 | ||
| P/FCF | 6.39 | ||
| P/OCF | 6.39 | ||
| P/B | 2.02 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 4.61 |
EPS(TTM)25.71
EY8.99%
EPS(NY)26.96
Fwd EY9.42%
FCF(TTM)44.76
FCFY15.64%
OCF(TTM)44.76
OCFY15.64%
SpS217
BVpS141.71
TBVpS121.03
PEG (NY)0.62
PEG (5Y)0.63
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
WACC8.25%
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 11.13 and the Price/Book (PB) ratio is 2.02.
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.