TRAVELERS COS INC/THE (TRV) Stock Fundamental Analysis
NYSE:TRV - US89417E1091 - Common Stock
276.29 USD
+1.37 (+0.5%)
276.29 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TRV. TRV was compared to 141 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 decent growth rate and is not valued too expensively.
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.
In the past 5 years TRV always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.75%, TRV is in the better half of the industry, outperforming 76.60% of the companies in the same industry.
TRV's Return On Equity of 17.64% is fine compared to the rest of the industry. TRV outperforms 77.31% of its industry peers.
TRV has a Return On Invested Capital of 4.31%. This is in the better half of the industry: TRV outperforms 78.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRV is in line with the industry average of 4.08%.
The 3 year average ROIC (3.24%) for TRV is below the current ROIC(4.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 17.64% | ||
| ROIC | 4.31% |
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 10.88%, TRV is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
TRV's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 14.43%, TRV is doing good in the industry, outperforming 66.67% 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 | 14.43% | ||
| PM (TTM) | 10.88% | ||
| 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.
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.
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 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
The Debt to FCF ratio of TRV (0.83) is better than 71.63% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that TRV is not too dependend on debt financing.
TRV has a Debt to Equity ratio of 0.27. This is comparable to the rest of the industry: TRV outperforms 58.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | N/A |
ROIC/WACC0.51
WACC8.42%
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 41.15%, 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 8.55%.
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)41.15%
EPS 3Y15.59%
EPS 5Y17.6%
EPS Q2Q%159.36%
Revenue 1Y (TTM)8.55%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%3.85%
3.2 Future
The Earnings Per Share is expected to grow by 2.64% on average over the next years.
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 Y-11.27%
EPS Next 2Y7.03%
EPS Next 3Y7.48%
EPS Next 5Y2.64%
Revenue Next Year4.13%
Revenue Next 2Y4.23%
Revenue Next 3Y4.13%
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 12.11, the valuation of TRV can be described as correct.
TRV's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of TRV to the average of the S&P500 Index (27.24), we can say TRV is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.17, the valuation of TRV can be described as reasonable.
TRV's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.82. TRV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.11 | ||
| Fwd PE | 11.17 |
4.2 Price Multiples
80.14% of the companies in the same industry are more expensive than TRV, based on the Enterprise Value to EBITDA ratio.
65.25% 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 | 6.46 | ||
| EV/EBITDA | 4.67 |
4.3 Compensation for Growth
TRV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y7.03%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.64%, TRV has a reasonable but not impressive dividend return.
TRV's Dividend Yield is comparable with the industry average which is at 3.59.
Compared to the average S&P500 Dividend Yield of 2.36, TRV is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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
TRV pays out 18.59% 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.
DP18.59%
EPS Next 2Y7.03%
EPS Next 3Y7.48%
276.29
+1.37 (+0.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.35%
Inst Owner Change1.26%
Ins Owners0.35%
Ins Owner Change4.17%
Market Cap62.20B
Analysts68.57
Price Target295.17 (6.83%)
Short Float %1.6%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend4.18
Dividend Growth(5Y)5.2%
DP18.59%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)109.41%
Min EPS beat(2)76.17%
Max EPS beat(2)142.66%
EPS beat(4)4
Avg EPS beat(4)75.39%
Min EPS beat(4)36.67%
Max EPS beat(4)142.66%
EPS beat(8)6
Avg EPS beat(8)40.32%
EPS beat(12)7
Avg EPS beat(12)21.1%
EPS beat(16)11
Avg EPS beat(16)24.12%
Revenue beat(2)0
Avg Revenue beat(2)-3.32%
Min Revenue beat(2)-3.83%
Max Revenue beat(2)-2.8%
Revenue beat(4)0
Avg Revenue beat(4)-2.56%
Min Revenue beat(4)-3.83%
Max Revenue beat(4)-1.1%
Revenue beat(8)1
Avg Revenue beat(8)-2.2%
Revenue beat(12)5
Avg Revenue beat(12)0.1%
Revenue beat(16)9
Avg Revenue beat(16)2.2%
PT rev (1m)1.83%
PT rev (3m)3.27%
EPS NQ rev (1m)6.72%
EPS NQ rev (3m)8.3%
EPS NY rev (1m)0%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)-1.5%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.11 | ||
| Fwd PE | 11.17 | ||
| P/S | 1.3 | ||
| P/FCF | 6.46 | ||
| P/OCF | 6.46 | ||
| P/B | 2.11 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 4.67 |
EPS(TTM)22.81
EY8.26%
EPS(NY)24.73
Fwd EY8.95%
FCF(TTM)42.79
FCFY15.49%
OCF(TTM)42.79
OCFY15.49%
SpS212.52
BVpS131.12
TBVpS110.55
PEG (NY)N/A
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 17.64% | ||
| ROCE | 5.1% | ||
| ROIC | 4.31% | ||
| ROICexc | 4.34% | ||
| ROICexgc | 5% | ||
| OM | 14.43% | ||
| PM (TTM) | 10.88% | ||
| GM | N/A | ||
| FCFM | 20.13% |
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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | 0.54 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 17.62 | ||
| Cash Conversion | 65.21% | ||
| Profit Quality | 185.04% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.42%
ROIC/WACC0.51
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)41.15%
EPS 3Y15.59%
EPS 5Y17.6%
EPS Q2Q%159.36%
EPS Next Y-11.27%
EPS Next 2Y7.03%
EPS Next 3Y7.48%
EPS Next 5Y2.64%
Revenue 1Y (TTM)8.55%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%3.85%
Revenue Next Year4.13%
Revenue Next 2Y4.23%
Revenue Next 3Y4.13%
Revenue Next 5Y3.6%
EBIT growth 1Y40.28%
EBIT growth 3Y11.1%
EBIT growth 5Y13.56%
EBIT Next Year24.28%
EBIT Next 3Y9.96%
EBIT Next 5YN/A
FCF growth 1Y50.87%
FCF growth 3Y7.65%
FCF growth 5Y11.76%
OCF growth 1Y50.87%
OCF growth 3Y7.65%
OCF growth 5Y11.76%