TRAVELERS COS INC/THE (TRV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRV - US89417E1091 - Common Stock
281.18 USD
-0.78 (-0.28%)
TRV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 146 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year TRV was profitable.
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
Looking at the Return On Assets, with a value of 4.06%, TRV is in the better half of the industry, outperforming 76.03% of the companies in the same industry.
TRV has a better Return On Equity (18.45%) than 82.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.64%, TRV is in the better half of the industry, outperforming 76.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRV is significantly below the industry average of 15.11%.
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
With a decent Profit Margin value of 12.05%, TRV is doing good in the industry, outperforming 65.75% of the companies in the same industry.
TRV's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.90%, TRV is in the better half of the industry, outperforming 63.70% of the companies in the same industry.
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.
TRV has less shares outstanding than it did 5 years ago.
TRV has a better debt/assets ratio than last year.
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.
Looking at the Debt to FCF ratio, with a value of 0.93, TRV is in the better half of the industry, outperforming 71.92% of the companies in the same industry.
TRV has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.29, TRV is in line with its industry, outperforming 55.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.56
WACC8.29%
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 32.19%, 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.
Looking at the last year, TRV shows a small growth in Revenue. The Revenue has grown by 6.74% in the last year.
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
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.
The Revenue is expected to grow by 3.60% on average over the next years.
EPS Next Y18.12%
EPS Next 2Y11.81%
EPS Next 3Y9.26%
EPS Next 5Y2.64%
Revenue Next Year2.65%
Revenue Next 2Y2.8%
Revenue Next 3Y3.1%
Revenue Next 5Y3.6%
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 10.94, the valuation of TRV can be described as reasonable.
60.27% of the companies in the same industry are more expensive than TRV, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TRV to the average of the S&P500 Index (27.19), we can say TRV is valued rather cheaply.
A Price/Forward Earnings ratio of 10.42 indicates a reasonable valuation of TRV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRV is on the same level as its industry peers.
TRV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
TRV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TRV is cheaper than 79.45% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRV indicates a somewhat cheap valuation: TRV is cheaper than 64.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.28 | ||
| EV/EBITDA | 4.56 |
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.
TRV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.6
PEG (5Y)0.62
EPS Next 2Y11.81%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
TRV has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.42, TRV has a dividend in line with its industry peers.
TRV's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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
TRV pays out 16.76% 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.
DP16.76%
EPS Next 2Y11.81%
EPS Next 3Y9.26%
NYSE:TRV (1/12/2026, 11:20:03 AM)
281.18
-0.78 (-0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners86.94%
Inst Owner Change-0.12%
Ins Owners0.36%
Ins Owner Change-0.96%
Market Cap62.72B
Revenue(TTM)48.41B
Net Income(TTM)5.83B
Analysts68.39
Price Target303.7 (8.01%)
Short Float %1.75%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
Yearly Dividend4.18
Dividend Growth(5Y)5.2%
DP16.76%
Div Incr Years19
Div Non Decr Years19
Ex-DateN/A
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)0.32%
PT rev (3m)2.32%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)4.16%
EPS NY rev (1m)0.17%
EPS NY rev (3m)13.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 10.42 | ||
| P/S | 1.3 | ||
| P/FCF | 6.28 | ||
| P/OCF | 6.28 | ||
| P/B | 1.98 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 4.56 |
EPS(TTM)25.71
EY9.14%
EPS(NY)26.99
Fwd EY9.6%
FCF(TTM)44.76
FCFY15.92%
OCF(TTM)44.76
OCFY15.92%
SpS217
BVpS141.71
TBVpS121.03
PEG (NY)0.6
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
WACC8.29%
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 Y18.12%
EPS Next 2Y11.81%
EPS Next 3Y9.26%
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 6 / 10 to TRV.
What is the valuation status of TRAVELERS COS INC/THE (TRV) stock?
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.
How financially healthy is TRAVELERS COS INC/THE?
The financial health rating of TRAVELERS COS INC/THE (TRV) is 4 / 10.
What is the earnings growth outlook for TRAVELERS COS INC/THE?
The Earnings per Share (EPS) of TRAVELERS COS INC/THE (TRV) is expected to grow by 18.12% in the next year.