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 144 industry peers in the Insurance industry. TRV scores excellent on profitability, but there are some minor concerns on its financial health. TRV has a decent growth rate and is not valued too expensively.
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.
TRV had positive earnings in each of the past 5 years.
In the past 5 years TRV always reported a positive cash flow from operatings.
1.2 Ratios
TRV has a better Return On Assets (3.72%) than 69.01% of its industry peers.
TRV's Return On Equity of 17.80% is fine compared to the rest of the industry. TRV outperforms 73.94% of its industry peers.
With a decent Return On Invested Capital value of 4.29%, TRV is doing good in the industry, outperforming 76.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRV is in line with the industry average of 4.61%.
The 3 year average ROIC (3.24%) for TRV is below the current ROIC(4.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 17.8% | ||
| ROIC | 4.29% |
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 better Profit Margin (10.68%) than 62.68% of its industry peers.
In the last couple of years the Profit Margin of TRV has grown nicely.
TRV has a better Operating Margin (14.17%) than 61.27% of its industry peers.
TRV's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.17% | ||
| PM (TTM) | 10.68% | ||
| GM | N/A |
OM growth 3Y0.89%
OM growth 5Y5.11%
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.
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.
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.
The Debt to FCF ratio of TRV (0.89) is better than 68.31% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | N/A |
ROIC/WACC0.5
WACC8.52%
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 76.53%, 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.
TRV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.24%.
TRV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.01% yearly.
EPS 1Y (TTM)76.53%
EPS 3Y15.59%
EPS 5Y17.6%
EPS Q2Q%30.53%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%7.48%
3.2 Future
The Earnings Per Share is expected to grow by 1.66% on average over the next years.
TRV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
EPS Next Y-5.48%
EPS Next 2Y5.3%
EPS Next 3Y7.56%
EPS Next 5Y1.66%
Revenue Next Year7.06%
Revenue Next 2Y6.48%
Revenue Next 3Y1.64%
Revenue Next 5Y4.81%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 11.36 indicates a reasonable valuation of TRV.
TRV's Price/Earnings is on the same level as the industry average.
TRV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.46.
Based on the Price/Forward Earnings ratio of 12.02, the valuation of TRV can be described as correct.
TRV's Price/Forward Earnings is on the same level as the industry average.
TRV is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 12.02 |
4.2 Price Multiples
TRV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TRV is cheaper than 81.69% of the companies in the same industry.
TRV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TRV is cheaper than 64.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.13 | ||
| EV/EBITDA | 4.48 |
4.3 Compensation for Growth
TRV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.65
EPS Next 2Y5.3%
EPS Next 3Y7.56%
5. Dividend
5.1 Amount
TRV has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.11, TRV has a dividend in line with its industry peers.
TRV's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.2%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
19.17% of the earnings are spent on dividend by TRV. This is a low number and sustainable payout ratio.
TRV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.17%
EPS Next 2Y5.3%
EPS Next 3Y7.56%
TRAVELERS COS INC/THE
NYSE:TRV (1/31/2025, 7:00:00 PM)
After market: 245.18 0 (0%)245.18
-3.91 (-1.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.95%
Inst Owner Change-0.16%
Ins Owners0.34%
Ins Owner Change-2.16%
Market Cap55.66B
Analysts66
Price Target277.24 (13.08%)
Short Float %1.46%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend4.18
Dividend Growth(5Y)5.2%
DP19.17%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)41.37%
Min EPS beat(2)36.67%
Max EPS beat(2)46.07%
EPS beat(4)3
Avg EPS beat(4)25.82%
Min EPS beat(4)-5.19%
Max EPS beat(4)46.07%
EPS beat(8)4
Avg EPS beat(8)-0.5%
EPS beat(12)7
Avg EPS beat(12)6.62%
EPS beat(16)11
Avg EPS beat(16)14.03%
Revenue beat(2)0
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-2.49%
Max Revenue beat(2)-1.1%
Revenue beat(4)0
Avg Revenue beat(4)-2.66%
Min Revenue beat(4)-4.07%
Max Revenue beat(4)-1.1%
Revenue beat(8)3
Avg Revenue beat(8)-0.54%
Revenue beat(12)7
Avg Revenue beat(12)1.68%
Revenue beat(16)11
Avg Revenue beat(16)3.89%
PT rev (1m)-0.04%
PT rev (3m)4.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.63%
EPS NY rev (1m)0%
EPS NY rev (3m)2.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | 12.02 | ||
| P/S | 1.2 | ||
| P/FCF | 6.13 | ||
| P/OCF | 6.13 | ||
| P/B | 2 | ||
| P/tB | 2.39 | ||
| EV/EBITDA | 4.48 |
EPS(TTM)21.59
EY8.81%
EPS(NY)20.41
Fwd EY8.32%
FCF(TTM)39.97
FCFY16.3%
OCF(TTM)39.97
OCFY16.3%
SpS204.52
BVpS122.74
TBVpS102.51
PEG (NY)N/A
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 17.8% | ||
| ROCE | 5.06% | ||
| ROIC | 4.29% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 4.99% | ||
| OM | 14.17% | ||
| PM (TTM) | 10.68% | ||
| GM | N/A | ||
| FCFM | 19.54% |
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)3.76%
ROICexcg growth 3Y6.6%
ROICexcg growth 5Y8.26%
ROICexc growth 3Y7.03%
ROICexc growth 5Y8.77%
OM growth 3Y0.89%
OM growth 5Y5.11%
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 | 0.29 | ||
| Debt/FCF | 0.89 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 16.87 | ||
| Cash Conversion | 63.6% | ||
| Profit Quality | 182.91% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.52%
ROIC/WACC0.5
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)76.53%
EPS 3Y15.59%
EPS 5Y17.6%
EPS Q2Q%30.53%
EPS Next Y-5.48%
EPS Next 2Y5.3%
EPS Next 3Y7.56%
EPS Next 5Y1.66%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%7.48%
Revenue Next Year7.06%
Revenue Next 2Y6.48%
Revenue Next 3Y1.64%
Revenue Next 5Y4.81%
EBIT growth 1Y75.05%
EBIT growth 3Y11.04%
EBIT growth 5Y13.52%
EBIT Next Year32.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y17.68%
FCF growth 3Y7.65%
FCF growth 5Y11.76%
OCF growth 1Y17.68%
OCF growth 3Y7.65%
OCF growth 5Y11.76%