TRAVELERS COS INC/THE (TRV) Stock Fundamental Analysis
USA - NYSE:TRV - US89417E1091 - Common Stock
287.29 USD
-0.13 (-0.05%)
287.29 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TRV. TRV was compared to 146 industry peers in the Insurance industry. TRV has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on TRV.
1. Profitability
1.1 Basic Checks
In the past year TRV was profitable.
TRV had a positive operating cash flow in the past year.
TRV had positive earnings in each of the past 5 years.
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.
With an excellent Return On Equity value of 18.45%, TRV belongs to the best of the industry, outperforming 82.19% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.64%, TRV is doing good in the industry, outperforming 78.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRV is in line with the industry average of 4.51%.
The last Return On Invested Capital (4.64%) for TRV is above the 3 year average (3.24%), which is a sign of increasing profitability.
| 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 69.18% of the companies in the same industry.
TRV's Profit Margin has improved in the last couple of years.
TRV has a better Operating Margin (15.90%) 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.
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's Debt to FCF ratio of 0.93 is fine compared to the rest of the industry. TRV outperforms 72.60% 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.
The Debt to Equity ratio of TRV (0.29) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.56
WACC8.26%
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.
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.
The Revenue has been growing slightly by 6.74% in the past year.
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)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
Based on estimates for the next years, TRV will show a small growth in Earnings Per Share. The EPS will grow by 2.64% on average per year.
Based on estimates for the next years, TRV will show a small growth in Revenue. The Revenue will grow by 3.60% on average per year.
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
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
Based on the Price/Earnings ratio of 11.17, the valuation of TRV can be described as reasonable.
TRV's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TRV to the average of the S&P500 Index (25.89), we can say TRV is valued rather cheaply.
TRV is valuated reasonably with a Price/Forward Earnings ratio of 10.65.
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 34.59. TRV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRV indicates a rather cheap valuation: TRV is cheaper than 80.82% of the companies listed in the same industry.
TRV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRV is cheaper than 67.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.42 | ||
| EV/EBITDA | 4.63 |
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)0.64
EPS Next 2Y11.76%
EPS Next 3Y9.17%
5. Dividend
5.1 Amount
TRV has a Yearly Dividend Yield of 1.53%.
Compared to an average industry Dividend Yield of 3.55, 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 | 1.53% |
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
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%
287.29
-0.13 (-0.05%)
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 Cap64.08B
Revenue(TTM)48.41B
Net Income(TTM)5.83B
Analysts68.67
Price Target302 (5.12%)
Short Float %1.61%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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)3.74%
EPS NQ rev (3m)1.43%
EPS NY rev (1m)13.75%
EPS NY rev (3m)32.89%
Revenue NQ rev (1m)-1.97%
Revenue NQ rev (3m)-2%
Revenue NY rev (1m)-1.31%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.17 | ||
| Fwd PE | 10.65 | ||
| P/S | 1.32 | ||
| P/FCF | 6.42 | ||
| P/OCF | 6.42 | ||
| P/B | 2.03 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 4.63 |
EPS(TTM)25.71
EY8.95%
EPS(NY)26.96
Fwd EY9.39%
FCF(TTM)44.76
FCFY15.58%
OCF(TTM)44.76
OCFY15.58%
SpS217
BVpS141.71
TBVpS121.03
PEG (NY)0.62
PEG (5Y)0.64
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
WACC8.26%
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 11.17 and the Price/Book (PB) ratio is 2.03.
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.