TRAVELERS COS INC/THE (TRV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRV - US89417E1091 - Common Stock
280.89 USD
-1.96 (-0.69%)
280.89 USD
0 (0%)
Overall TRV gets a fundamental rating of 5 out of 10. We evaluated TRV against 147 industry peers in the Insurance industry. While TRV belongs to the best of the industry regarding profitability, 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
TRV had positive earnings in the past year.
In the past year TRV had a positive cash flow from operations.
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
TRV's Return On Assets of 4.06% is fine compared to the rest of the industry. TRV outperforms 75.51% of its industry peers.
TRV's Return On Equity of 18.45% is amongst the best of the industry. TRV outperforms 82.31% of its industry peers.
TRV's Return On Invested Capital of 4.64% is fine compared to the rest of the industry. TRV outperforms 74.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRV is significantly below the industry average of 14.89%.
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
Looking at the Profit Margin, with a value of 12.05%, TRV is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
TRV's Profit Margin has improved in the last couple of years.
The Operating Margin of TRV (15.90%) is better than 63.27% 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.
The number of shares outstanding for TRV has been reduced compared to 5 years ago.
The debt/assets ratio for TRV has been reduced compared to a year ago.
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 71.43% 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.
TRV has a Debt to Equity ratio (0.29) which is in line with 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
The Earnings Per Share has grown by an impressive 32.19% 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 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
The Earnings Per Share is expected to grow by 2.64% on average over the next years.
The Revenue is expected to grow by 3.60% on average over the next years.
EPS Next Y17.92%
EPS Next 2Y11.79%
EPS Next 3Y9.19%
EPS Next 5Y2.64%
Revenue Next Year2.65%
Revenue Next 2Y2.8%
Revenue Next 3Y3.1%
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
The Price/Earnings ratio is 10.93, which indicates a very decent 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.
When comparing the Price/Earnings ratio of TRV to the average of the S&P500 Index (26.49), we can say TRV is valued rather cheaply.
A Price/Forward Earnings ratio of 10.41 indicates a reasonable valuation of TRV.
TRV's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.69. TRV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
TRV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TRV is cheaper than 78.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TRV is valued a bit cheaper than 64.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.27 | ||
| EV/EBITDA | 4.54 |
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.
The decent profitability rating of TRV may justify a higher PE ratio.
PEG (NY)0.61
PEG (5Y)0.62
EPS Next 2Y11.79%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
TRV has a Yearly Dividend Yield of 1.56%.
TRV's Dividend Yield is comparable with the industry average which is at 3.48.
TRV's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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.
The dividend of TRV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.76%
EPS Next 2Y11.79%
EPS Next 3Y9.19%
280.89
-1.96 (-0.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.95%
Inst Owner Change-2.63%
Ins Owners0.36%
Ins Owner Change-0.96%
Market Cap62.66B
Revenue(TTM)48.41B
Net Income(TTM)5.83B
Analysts68.67
Price Target302.71 (7.77%)
Short Float %1.77%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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)0.24%
PT rev (3m)2.18%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)3.73%
EPS NY rev (1m)0%
EPS NY rev (3m)13.82%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-2.06%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 10.41 | ||
| P/S | 1.29 | ||
| P/FCF | 6.27 | ||
| P/OCF | 6.27 | ||
| P/B | 1.98 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 4.54 |
EPS(TTM)25.71
EY9.15%
EPS(NY)26.98
Fwd EY9.6%
FCF(TTM)44.76
FCFY15.94%
OCF(TTM)44.76
OCFY15.94%
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
WACC8.25%
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 2Y11.79%
EPS Next 3Y9.19%
EPS Next 5Y2.64%
Revenue 1Y (TTM)6.74%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%1.38%
Revenue Next Year2.65%
Revenue Next 2Y2.8%
Revenue Next 3Y3.1%
Revenue Next 5Y3.6%
EBIT growth 1Y27.98%
EBIT growth 3Y11.1%
EBIT growth 5Y13.56%
EBIT Next Year39.11%
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 5 / 10 to TRV.
Can you provide the valuation status for TRAVELERS COS INC/THE?
ChartMill assigns a valuation rating of 6 / 10 to TRAVELERS COS INC/THE (TRV). This can be considered as Fairly Valued.
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 10.93 and the Price/Book (PB) ratio is 1.98.
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.