TRAVELERS COS INC/THE (TRV) Stock Fundamental Analysis
NYSE:TRV - New York Stock Exchange, Inc. - US89417E1091 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TRV. TRV was compared to 144 industry peers in the Insurance industry. TRV has only an average score on both its financial health and profitability. TRV is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years TRV has been profitable.
Each year in the past 5 years TRV had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.12%, TRV is doing good in the industry, outperforming 70.83% of the companies in the same industry.
TRV has a better Return On Equity (15.03%) than 73.61% of its industry peers.
TRV's Return On Invested Capital of 3.63% is fine compared to the rest of the industry. TRV outperforms 71.53% of its industry peers.
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 4.07%.
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
TRV has a Profit Margin (9.01%) which is comparable to the rest of the industry.
TRV's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 12.08%, TRV perfoms like the industry average, outperforming 54.17% of the companies in the same 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
The debt/assets ratio for TRV has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of TRV is 0.89, which is an excellent value as it means it would take TRV, only 0.89 years of fcf income to pay off all of its debts.
TRV's Debt to FCF ratio of 0.89 is fine compared to the rest of the industry. TRV outperforms 69.44% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that TRV is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.28, TRV perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | N/A |
ROIC/WACC0.43
WACC8.41%
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.
Measured over the past years, TRV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.60% on average per year.
TRV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.60%.
Measured over the past years, TRV shows a quite strong growth in Revenue. The Revenue has been growing by 8.01% on average per year.
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.
TRV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.75% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 14.04, the valuation of TRV can be described as correct.
TRV's Price/Earnings ratio is in line with the industry average.
TRV is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.63, the valuation of TRV can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as TRV.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, TRV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
TRV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TRV is cheaper than 79.17% of the companies in the same industry.
TRV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRV is cheaper than 63.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.67 | ||
| EV/EBITDA | 4.99 |
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 1.67%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.51, TRV has a dividend in line with its industry peers.
TRV's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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
TRV pays out 22.70% of its income as dividend. This is a sustainable payout ratio.
TRV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.7%
EPS Next 2Y7.28%
EPS Next 3Y8.26%
264.13
+6.79 (+2.64%)
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 Cap59.84B
Analysts69.29
Price Target289.87 (9.75%)
Short Float %1.51%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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)-0.15%
EPS NY rev (1m)0.18%
EPS NY rev (3m)6.51%
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 | 14.04 | ||
| Fwd PE | 10.63 | ||
| 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)24.85
Fwd EY9.41%
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
WACC8.41%
ROIC/WACC0.43
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%