LOEWS CORP (L) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:L - US5404241086 - Common Stock
101.86 USD
-0.54 (-0.53%)
101.86 USD
0 (0%)
Overall L gets a fundamental rating of 3 out of 10. We evaluated L against 148 industry peers in the Insurance industry. While L is still in line with the averages on profitability rating, there are concerns on its financial health. L does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- L had positive earnings in the past year.
- In the past year L had a positive cash flow from operations.
- Of the past 5 years L 4 years were profitable.
- L had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- L has a Return On Assets of 1.69%. This is comparable to the rest of the industry: L outperforms 46.62% of its industry peers.
- With a Return On Equity value of 7.94%, L is not doing good in the industry: 66.89% of the companies in the same industry are doing better.
- L's Return On Invested Capital of 2.18% is in line compared to the rest of the industry. L outperforms 50.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for L is significantly below the industry average of 14.93%.
- The 3 year average ROIC (2.05%) for L is below the current ROIC(2.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.69% | ||
| ROE | 7.94% | ||
| ROIC | 2.18% |
ROA(3y)1.54%
ROA(5y)1.08%
ROE(3y)7.72%
ROE(5y)5.34%
ROIC(3y)2.05%
ROIC(5y)N/A
1.3 Margins
- L's Profit Margin of 7.93% is in line compared to the rest of the industry. L outperforms 49.32% of its industry peers.
- In the last couple of years the Profit Margin of L has grown nicely.
- With a Operating Margin value of 12.88%, L perfoms like the industry average, outperforming 52.03% of the companies in the same industry.
- L's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.88% | ||
| PM (TTM) | 7.93% | ||
| GM | N/A |
OM growth 3Y-9.39%
OM growth 5Y2.96%
PM growth 3Y-8.85%
PM growth 5Y5.2%
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 L is destroying value.
- The number of shares outstanding for L has been reduced compared to 1 year ago.
- L has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for L has been reduced compared to a year ago.
2.2 Solvency
- L has a debt to FCF ratio of 3.11. This is a good value and a sign of high solvency as L would need 3.11 years to pay back of all of its debts.
- L's Debt to FCF ratio of 3.11 is in line compared to the rest of the industry. L outperforms 48.65% of its industry peers.
- L has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
- L's Debt to Equity ratio of 0.46 is on the low side compared to the rest of the industry. L is outperformed by 64.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC7.33%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- L shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.37%.
- The Earnings Per Share has been growing by 13.42% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 6.33% in the past year.
- L shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.32% yearly.
EPS 1Y (TTM)-8.37%
EPS 3Y2.23%
EPS 5Y13.42%
EPS Q2Q%33.52%
Revenue 1Y (TTM)6.33%
Revenue growth 3Y6.13%
Revenue growth 5Y3.32%
Sales Q2Q%4.59%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- L is valuated correctly with a Price/Earnings ratio of 14.76.
- L's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. L is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- L's Enterprise Value to EBITDA ratio is in line with the industry average.
- L's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.92 | ||
| EV/EBITDA | 10.18 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 0.24%, L is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.41, L is paying slightly less dividend.
- With a Dividend Yield of 0.24, L pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
- The dividend of L decreases each year by -0.02%.
- L has been paying a dividend for at least 10 years, so it has a reliable track record.
- L has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.02%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
- L pays out 3.58% of its income as dividend. This is a sustainable payout ratio.
DP3.58%
EPS Next 2YN/A
EPS Next 3YN/A
LOEWS CORP / L FAQ
What is the fundamental rating for L stock?
ChartMill assigns a fundamental rating of 3 / 10 to L.
Can you provide the valuation status for LOEWS CORP?
ChartMill assigns a valuation rating of 2 / 10 to LOEWS CORP (L). This can be considered as Overvalued.
Can you provide the profitability details for LOEWS CORP?
LOEWS CORP (L) has a profitability rating of 4 / 10.
Can you provide the dividend sustainability for L stock?
The dividend rating of LOEWS CORP (L) is 4 / 10 and the dividend payout ratio is 3.58%.