TRAVELERS COS INC/THE (TRV)
US89417E1091 - Common Stock
Overall TRV gets a fundamental rating of 5 out of 10. We evaluated TRV against 140 industry peers in the Insurance industry. While TRV is still in line with the averages on profitability rating, there are concerns on its financial health. TRV has a correct valuation and a medium growth rate.
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
With a decent Return On Assets value of 3.35%, TRV is doing good in the industry, outperforming 70.50% of the companies in the same industry.
With a decent Return On Equity value of 16.28%, TRV is doing good in the industry, outperforming 71.22% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.97%, TRV is doing good in the industry, outperforming 75.54% of the companies in the same industry.
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 4.27%.
The 3 year average ROIC (3.04%) for TRV is below the current ROIC(3.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 16.28% | ||
| ROIC | 3.97% |
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's Profit Margin of 9.94% is fine compared to the rest of the industry. TRV outperforms 61.87% of its industry peers.
TRV's Profit Margin has declined in the last couple of years.
TRV has a Operating Margin (13.26%) which is comparable to the rest of the industry.
TRV's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.26% | ||
| PM (TTM) | 9.94% | ||
| 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.
TRV has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TRV has been reduced compared to 5 years ago.
Compared to 1 year ago, TRV has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of TRV is 0.88, which is an excellent value as it means it would take TRV, only 0.88 years of fcf income to pay off all of its debts.
TRV's Debt to FCF ratio of 0.88 is fine compared to the rest of the industry. TRV outperforms 69.06% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that TRV is not too dependend on debt financing.
The Debt to Equity ratio of TRV (0.29) is better than 60.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.88 | ||
| Altman-Z | N/A |
ROIC/WACC0.47
WACC8.49%
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 125.64% over the past year.
The Earnings Per Share has been growing slightly by 6.47% on average over the past years.
Looking at the last year, TRV shows a quite strong growth in Revenue. The Revenue has grown by 13.15% in the last year.
TRV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.44% yearly.
EPS 1Y (TTM)125.64%
EPS 3Y5.38%
EPS 5Y6.47%
EPS Q2Q%168.72%
Revenue 1Y (TTM)13.15%
Revenue growth 3Y8.89%
Revenue growth 5Y6.44%
Sales Q2Q%7.85%
3.2 Future
TRV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.83% yearly.
The Revenue is expected to grow by 3.22% on average over the next years.
EPS Next Y56.42%
EPS Next 2Y32.46%
EPS Next 3Y23.25%
EPS Next 5Y13.83%
Revenue Next Year7.97%
Revenue Next 2Y7.44%
Revenue Next 3Y6.92%
Revenue Next 5Y3.22%
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 accelerating.
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
TRV is valuated correctly with a Price/Earnings ratio of 13.41.
Compared to the rest of the industry, the Price/Earnings ratio of TRV is on the same level as its industry peers.
TRV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 12.15, the valuation of TRV can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as TRV.
When comparing the Price/Forward Earnings ratio of TRV to the average of the S&P500 Index (23.82), we can say TRV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRV is valued cheaply inside the industry as 80.58% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TRV is valued a bit cheaper than 64.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.5 | ||
| EV/EBITDA | 4.9 |
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's earnings are expected to grow with 23.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)2.07
EPS Next 2Y32.46%
EPS Next 3Y23.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.64%, TRV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.25, TRV has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.23, 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 5.33%.
TRV has been paying a dividend for at least 10 years, so it has 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)5.33%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
TRV pays out 20.92% of its income as dividend. This is a sustainable payout ratio.
The dividend of TRV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.92%
EPS Next 2Y32.46%
EPS Next 3Y23.25%
TRAVELERS COS INC/THE
NYSE:TRV (11/21/2024, 8:04:00 PM)
Premarket: 261.1 +0.29 (+0.11%)260.81
+3.62 (+1.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap59.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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 | 13.41 | ||
| Fwd PE | 12.15 | ||
| 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)0.24
PEG (5Y)2.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 16.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.26% | ||
| PM (TTM) | 9.94% | ||
| 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 | 0.29 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)125.64%
EPS 3Y5.38%
EPS 5Y
EPS Q2Q%
EPS Next Y56.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.15%
Revenue growth 3Y8.89%
Revenue growth 5Y
Sales 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