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 144 industry peers in the Insurance industry. TRV has only an average score on both its financial health and profitability. TRV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TRV was profitable.
TRV had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 3.12%, TRV is doing good in the industry, outperforming 71.53% of the companies in the same industry.
TRV has a better Return On Equity (15.03%) than 74.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.63%, TRV is in the better half of the industry, outperforming 72.22% 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 4.08%.
The 3 year average ROIC (3.24%) for TRV is below the current ROIC(3.63%), indicating increased profibility in the last year.
| 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
TRV has a Profit Margin (9.01%) which is in line with its industry peers.
In the last couple of years the Profit Margin of TRV has grown nicely.
Looking at the Operating Margin, with a value of 12.08%, TRV is in line with its industry, outperforming 54.86% of the companies in the same industry.
In the last couple of years the Operating Margin of TRV has grown nicely.
| 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
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.
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.
Looking at the Debt to FCF ratio, with a value of 0.89, TRV is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
TRV has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TRV (0.28) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | N/A |
ROIC/WACC0.38
WACC9.45%
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 37.20%, 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 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
Based on estimates for the next years, TRV will show a small growth in Earnings Per Share. The EPS will grow by 2.53% on average per year.
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-11.44%
EPS Next 2Y7.28%
EPS Next 3Y8.26%
EPS Next 5Y2.53%
Revenue Next Year5.42%
Revenue Next 2Y5.69%
Revenue Next 3Y5.26%
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.
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
With a Price/Earnings ratio of 14.09, TRV is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as TRV.
TRV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
Based on the Price/Forward Earnings ratio of 10.66, the valuation of TRV can be described as reasonable.
TRV's Price/Forward Earnings ratio is in line with the industry average.
TRV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 10.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRV is valued a bit cheaper than 79.86% of the companies in the same industry.
63.19% 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 | 6.69 | ||
| EV/EBITDA | 5 |
4.3 Compensation for Growth
The decent profitability rating of TRV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y7.28%
EPS Next 3Y8.26%
5. Dividend
5.1 Amount
TRV has a Yearly Dividend Yield of 1.66%.
TRV's Dividend Yield is comparable with the industry average which is at 3.52.
TRV's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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 2Y7.28%
EPS Next 3Y8.26%
264.98
+0.08 (+0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.01%
Inst Owner Change0.11%
Ins Owners0.36%
Ins Owner Change5.41%
Market Cap60.04B
Analysts69.29
Price Target289.87 (9.39%)
Short Float %1.48%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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)1.41%
PT rev (3m)4.49%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)-0.08%
EPS NY rev (1m)0.18%
EPS NY rev (3m)2.86%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 10.66 | ||
| P/S | 1.28 | ||
| P/FCF | 6.69 | ||
| P/OCF | 6.69 | ||
| P/B | 2.13 | ||
| P/tB | 2.54 | ||
| EV/EBITDA | 5 |
EPS(TTM)18.81
EY7.1%
EPS(NY)24.85
Fwd EY9.38%
FCF(TTM)39.62
FCFY14.95%
OCF(TTM)39.62
OCFY14.95%
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
WACC9.45%
ROIC/WACC0.38
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-11.44%
EPS Next 2Y7.28%
EPS Next 3Y8.26%
EPS Next 5Y2.53%
Revenue 1Y (TTM)9.6%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%3.27%
Revenue Next Year5.42%
Revenue Next 2Y5.69%
Revenue Next 3Y5.26%
Revenue Next 5Y3.75%
EBIT growth 1Y34.8%
EBIT growth 3Y11.1%
EBIT growth 5Y13.56%
EBIT Next Year12.86%
EBIT Next 3Y9.96%
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%