TRAVELERS COS INC/THE (TRV)
US89417E1091 - Common Stock
TRV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 140 industry peers in the Insurance industry. TRV has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
Each year in the past 5 years TRV had a positive operating cash flow.
1.2 Ratios
TRV has a Return On Assets of 2.44%. This is in the better half of the industry: TRV outperforms 60.43% of its industry peers.
TRV has a Return On Equity (12.45%) which is comparable to the rest of the industry.
TRV's Return On Invested Capital of 2.94% is fine compared to the rest of the industry. TRV outperforms 64.03% of its industry peers.
TRV had an Average Return On Invested Capital over the past 3 years of 3.04%. This is in line with the industry average of 4.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 12.45% | ||
| ROIC | 2.94% |
ROA(3y)2.6%
ROA(5y)2.49%
ROE(3y)12.53%
ROE(5y)11.36%
ROIC(3y)3.04%
ROIC(5y)2.96%
1.3 Margins
TRV has a Profit Margin (7.26%) which is comparable to the rest of the industry.
TRV's Profit Margin has declined in the last couple of years.
TRV has a Operating Margin (9.82%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TRV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.82% | ||
| PM (TTM) | 7.26% | ||
| GM | N/A |
OM growth 3Y-7.1%
OM growth 5Y-3.65%
PM growth 3Y-4.95%
PM growth 5Y-2.79%
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.
Compared to 1 year ago, TRV has less shares outstanding
TRV has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TRV is higher compared to a year ago.
2.2 Solvency
TRV has a debt to FCF ratio of 0.98. This is a very positive value and a sign of high solvency as it would only need 0.98 years to pay back of all of its debts.
The Debt to FCF ratio of TRV (0.98) is better than 71.94% of its industry peers.
TRV has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
TRV's Debt to Equity ratio of 0.32 is fine compared to the rest of the industry. TRV outperforms 61.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | N/A |
ROIC/WACC0.35
WACC8.38%
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 20.47%, which is quite impressive.
TRV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.47% yearly.
Looking at the last year, TRV shows a quite strong growth in Revenue. The Revenue has grown by 13.42% in the last year.
The Revenue has been growing slightly by 6.44% on average over the past years.
EPS 1Y (TTM)20.47%
EPS 3Y5.38%
EPS 5Y6.47%
EPS growth Q2Q46.11%
Revenue 1Y (TTM)13.42%
Revenue growth 3Y8.89%
Revenue growth 5Y6.44%
Revenue growth Q2Q4.91%
3.2 Future
The Earnings Per Share is expected to grow by 13.83% on average over the next years. This is quite good.
TRV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.22% yearly.
EPS Next Y50.9%
EPS Next 2Y31.12%
EPS Next 3Y24.14%
EPS Next 5Y13.83%
Revenue Next Year10.62%
Revenue Next 2Y8.99%
Revenue Next 3Y7.32%
Revenue Next 5Y3.22%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 16.03 indicates a correct valuation of TRV.
TRV's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.60, TRV is valued a bit cheaper.
A Price/Forward Earnings ratio of 10.45 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 valuation a bit cheaper than the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.03 | ||
| Fwd PE | 10.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRV indicates a somewhat cheap valuation: TRV is cheaper than 79.14% of the companies listed in the same industry.
63.31% 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 | 6.17 | ||
| EV/EBITDA | 5.06 |
4.3 Compensation for Growth
TRV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TRV's earnings are expected to grow with 24.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)2.48
EPS Next 2Y31.12%
EPS Next 3Y24.14%
5. Dividend
5.1 Amount
TRV has a Yearly Dividend Yield of 1.92%.
TRV's Dividend Yield is comparable with the industry average which is at 4.26.
Compared to an average S&P500 Dividend Yield of 2.32, TRV has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
The dividend of TRV has a limited annual growth rate of 5.33%.
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)5.33%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
29.60% 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 earnings are growing more, so the dividend growth is sustainable.
DP29.6%
EPS Next 2Y31.12%
EPS Next 3Y24.14%
TRAVELERS COS INC/THE
NYSE:TRV (5/17/2024, 7:04:00 PM)
After market: 219.71 0 (0%)219.71
+0.49 (+0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap50.31B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.03 | ||
| Fwd PE | 10.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.31
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 12.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.82% | ||
| PM (TTM) | 7.26% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)20.47%
EPS 3Y5.38%
EPS 5Y
EPS growth Q2Q
EPS Next Y50.9%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.42%
Revenue growth 3Y8.89%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y