TRAVELERS COS INC/THE (TRV) Stock Fundamental Analysis
NYSE:TRV - New York Stock Exchange, Inc. - US89417E1091 - Common Stock - Currency: USD
TRV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. TRV has an average financial health and profitability rating. TRV has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TRV had positive earnings in the past year.
TRV had a positive operating cash flow in the past year.
In the past 5 years TRV has always been profitable.
In the past 5 years TRV always reported a positive cash flow from operatings.
1.2 Ratios
TRV has a better Return On Assets (3.12%) than 69.23% of its industry peers.
With a decent Return On Equity value of 15.03%, TRV is doing good in the industry, outperforming 62.24% of the companies in the same industry.
TRV has a Return On Invested Capital of 3.63%. This is in the better half of the industry: TRV outperforms 71.33% 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 4.47%.
The last Return On Invested Capital (3.63%) for TRV is above the 3 year average (3.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 15.03% | ||
| ROIC | 3.63% |
ROA(3y)2.84%
ROA(5y)2.77%
ROE(3y)14.27%
ROE(5y)12.91%
ROIC(3y)3.24%
ROIC(5y)3.19%
1.3 Margins
TRV has a Profit Margin (9.01%) which is in line with its industry peers.
In the last couple of years the Profit Margin of TRV has grown nicely.
Looking at the Operating Margin, with a value of 12.08%, TRV is in line with its industry, outperforming 51.05% of the companies in the same industry.
TRV's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.08% | ||
| PM (TTM) | 9.01% | ||
| 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.
Compared to 5 years ago, TRV has less shares outstanding
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 0.89. This is a very positive value and a sign of high solvency as it would only need 0.89 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.89, TRV is in the better half of the industry, outperforming 67.13% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that TRV is not too dependend on debt financing.
The Debt to Equity ratio of TRV (0.28) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | N/A |
ROIC/WACC0.43
WACC8.39%
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 37.20% over the past year.
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 quite strong growth in Revenue. The Revenue has grown by 9.60% 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)37.2%
EPS 3Y15.59%
EPS 5Y17.6%
EPS Q2Q%-59.28%
Revenue 1Y (TTM)9.6%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%3.27%
3.2 Future
TRV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.53% yearly.
The Revenue is expected to grow by 3.75% on average over the next years.
EPS Next Y-12.98%
EPS Next 2Y6.86%
EPS Next 3Y7.89%
EPS Next 5Y2.53%
Revenue Next Year6.58%
Revenue Next 2Y6.39%
Revenue Next 3Y6.3%
Revenue Next 5Y3.75%
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.
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
The Price/Earnings ratio is 13.60, which indicates a correct valuation of TRV.
The rest of the industry has a similar Price/Earnings ratio as TRV.
TRV is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.38, which indicates a very decent valuation of TRV.
TRV's Price/Forward Earnings is on the same level as the industry average.
TRV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRV is valued a bit cheaper than the industry average as 79.02% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRV indicates a somewhat cheap valuation: TRV is cheaper than 64.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.46 | ||
| EV/EBITDA | 4.85 |
4.3 Compensation for Growth
The decent profitability rating of TRV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y6.86%
EPS Next 3Y7.89%
5. Dividend
5.1 Amount
TRV has a Yearly Dividend Yield of 1.72%.
TRV's Dividend Yield is comparable with the industry average which is at 3.28.
Compared to the average S&P500 Dividend Yield of 2.51, TRV is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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 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 22.70% 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.
DP22.7%
EPS Next 2Y6.86%
EPS Next 3Y7.89%
255.86
+3.38 (+1.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.82%
Inst Owner Change1.58%
Ins Owners0.32%
Ins Owner Change4.08%
Market Cap57.97B
Analysts68
Price Target278.95 (9.02%)
Short Float %1.56%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend4.18
Dividend Growth(5Y)5.2%
DP22.7%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)89.67%
Min EPS beat(2)36.67%
Max EPS beat(2)142.66%
EPS beat(4)4
Avg EPS beat(4)62.78%
Min EPS beat(4)25.73%
Max EPS beat(4)142.66%
EPS beat(8)5
Avg EPS beat(8)18.66%
EPS beat(12)7
Avg EPS beat(12)17.19%
EPS beat(16)11
Avg EPS beat(16)22.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-3.83%
Max Revenue beat(2)-1.1%
Revenue beat(4)0
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-3.83%
Max Revenue beat(4)-1.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.6%
Revenue beat(12)6
Avg Revenue beat(12)0.62%
Revenue beat(16)10
Avg Revenue beat(16)3.08%
PT rev (1m)0.56%
PT rev (3m)2.12%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)-5.48%
EPS NY rev (1m)1.06%
EPS NY rev (3m)-12.19%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 10.38 | ||
| P/S | 1.23 | ||
| P/FCF | 6.46 | ||
| P/OCF | 6.46 | ||
| P/B | 2.06 | ||
| P/tB | 2.46 | ||
| EV/EBITDA | 4.85 |
EPS(TTM)18.81
EY7.35%
EPS(NY)24.65
Fwd EY9.64%
FCF(TTM)39.62
FCFY15.48%
OCF(TTM)39.62
OCFY15.48%
SpS207.49
BVpS124.43
TBVpS104.12
PEG (NY)N/A
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 15.03% | ||
| ROCE | 4.28% | ||
| ROIC | 3.63% | ||
| ROICexc | 3.65% | ||
| ROICexgc | 4.22% | ||
| OM | 12.08% | ||
| PM (TTM) | 9.01% | ||
| GM | N/A | ||
| FCFM | 19.09% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 0.89 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 14.52 | ||
| Cash Conversion | 66.79% | ||
| Profit Quality | 211.85% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.39%
ROIC/WACC0.43
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)37.2%
EPS 3Y15.59%
EPS 5Y17.6%
EPS Q2Q%-59.28%
EPS Next Y-12.98%
EPS Next 2Y6.86%
EPS Next 3Y7.89%
EPS Next 5Y2.53%
Revenue 1Y (TTM)9.6%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%3.27%
Revenue Next Year6.58%
Revenue Next 2Y6.39%
Revenue Next 3Y6.3%
Revenue Next 5Y3.75%
EBIT growth 1Y34.8%
EBIT growth 3Y11.1%
EBIT growth 5Y13.56%
EBIT Next Year26.57%
EBIT Next 3Y9.12%
EBIT Next 5YN/A
FCF growth 1Y44.52%
FCF growth 3Y7.65%
FCF growth 5Y11.76%
OCF growth 1Y44.52%
OCF growth 3Y7.65%
OCF growth 5Y11.76%