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 143 industry peers in the Insurance industry. TRV has an average financial health and profitability rating. TRV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TRV was profitable.
In the past year TRV had a positive cash flow from operations.
TRV had positive earnings in each of the past 5 years.
TRV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TRV has a better Return On Assets (3.12%) than 70.63% of its industry peers.
TRV has a Return On Equity of 15.03%. This is in the better half of the industry: TRV outperforms 72.73% of its industry peers.
With a decent Return On Invested Capital value of 3.63%, TRV is doing good in the industry, outperforming 70.63% 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 4.27%.
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's Profit Margin of 9.01% is in line compared to the rest of the industry. TRV outperforms 56.64% of its industry peers.
TRV's Profit Margin has improved in the last couple of years.
TRV has a Operating Margin (12.08%) which is in line with its industry peers.
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.
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
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 67.83% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that TRV is not too dependend on debt financing.
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/WACC0.43
WACC8.53%
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.
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%.
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
TRV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.53% yearly.
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-11.6%
EPS Next 2Y7.28%
EPS Next 3Y7.99%
EPS Next 5Y2.53%
Revenue Next Year5.44%
Revenue Next 2Y5.69%
Revenue Next 3Y5.3%
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
A Price/Earnings ratio of 14.55 indicates a correct valuation of TRV.
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 26.60, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.02, the valuation of TRV can be described as very reasonable.
TRV's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.43. TRV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 11.02 |
4.2 Price Multiples
TRV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TRV is cheaper than 79.72% 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 60.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.91 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
The decent profitability rating of TRV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y7.28%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.62%, TRV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.17, 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 | 1.62% |
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 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
22.70% 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.
DP22.7%
EPS Next 2Y7.28%
EPS Next 3Y7.99%
273.71
-0.83 (-0.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.82%
Inst Owner Change1.08%
Ins Owners0.32%
Ins Owner Change6.07%
Market Cap62.01B
Analysts68.97
Price Target285.83 (4.43%)
Short Float %1.47%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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)2.47%
PT rev (3m)3.1%
EPS NQ rev (1m)-0.45%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)1.59%
EPS NY rev (3m)-0.86%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 11.02 | ||
| P/S | 1.32 | ||
| P/FCF | 6.91 | ||
| P/OCF | 6.91 | ||
| P/B | 2.2 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 5.15 |
EPS(TTM)18.81
EY6.87%
EPS(NY)24.85
Fwd EY9.08%
FCF(TTM)39.62
FCFY14.47%
OCF(TTM)39.62
OCFY14.47%
SpS207.49
BVpS124.43
TBVpS104.12
PEG (NY)N/A
PEG (5Y)0.83
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
WACC8.53%
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-11.6%
EPS Next 2Y7.28%
EPS Next 3Y7.99%
EPS Next 5Y2.53%
Revenue 1Y (TTM)9.6%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%3.27%
Revenue Next Year5.44%
Revenue Next 2Y5.69%
Revenue Next 3Y5.3%
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%