TRAVELERS COS INC/THE (TRV) Stock Fundamental Analysis
NYSE:TRV - New York Stock Exchange, Inc. - US89417E1091 - Common Stock - Currency: USD
Taking everything into account, TRV scores 5 out of 10 in our fundamental rating. TRV was compared to 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
In the past year TRV was profitable.
In the past year TRV had a positive cash flow from operations.
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
With a decent Return On Assets value of 3.72%, TRV is doing good in the industry, outperforming 69.72% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.80%, TRV is in the better half of the industry, outperforming 76.76% of the companies in the same industry.
TRV has a Return On Invested Capital of 4.29%. This is in the better half of the industry: TRV outperforms 75.35% of its industry peers.
TRV had an Average Return On Invested Capital over the past 3 years of 3.24%. This is in line with the industry average of 4.52%.
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
With a decent Profit Margin value of 10.68%, TRV is doing good in the industry, outperforming 64.08% of the companies in the same industry.
In the last couple of years the Profit Margin of TRV has grown nicely.
With a decent Operating Margin value of 14.17%, TRV is doing good in the industry, outperforming 61.97% of the companies in the same industry.
In the last couple of years the Operating Margin of TRV has grown nicely.
| 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
TRV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TRV has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TRV has less shares outstanding
Compared to 1 year ago, TRV has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of TRV is 0.89, which is an excellent value as it means it would take TRV, only 0.89 years of fcf income to pay off all of its debts.
TRV has a better Debt to FCF ratio (0.89) than 67.61% of its industry peers.
TRV has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TRV (0.29) is better than 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.89 | ||
| Altman-Z | N/A |
ROIC/WACC0.51
WACC8.35%
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 76.53% 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 12.24% 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)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.
Based on estimates for the next years, TRV will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
EPS Next Y-13.9%
EPS Next 2Y5.86%
EPS Next 3Y7.76%
EPS Next 5Y1.66%
Revenue Next Year6.7%
Revenue Next 2Y6.45%
Revenue Next 3Y6.21%
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.
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
With a Price/Earnings ratio of 11.97, the valuation of TRV can be described as very reasonable.
TRV's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of TRV to the average of the S&P500 Index (29.98), we can say TRV is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.91, the valuation of TRV can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as TRV.
TRV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 13.91 |
4.2 Price Multiples
80.28% of the companies in the same industry are more expensive than TRV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TRV is valued a bit cheaper than the industry average as 62.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.46 | ||
| EV/EBITDA | 4.62 |
4.3 Compensation for Growth
The decent profitability rating of TRV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.68
EPS Next 2Y5.86%
EPS Next 3Y7.76%
5. Dividend
5.1 Amount
TRV has a Yearly Dividend Yield of 1.65%.
Compared to an average industry Dividend Yield of 3.06, TRV has a dividend in line with its industry peers.
TRV's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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 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 2Y5.86%
EPS Next 3Y7.76%
258.49
+3.7 (+1.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.82%
Inst Owner Change1.88%
Ins Owners0.32%
Ins Owner Change4.08%
Market Cap58.57B
Analysts68
Price Target276.81 (7.09%)
Short Float %1.54%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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)-0.15%
PT rev (3m)1.87%
EPS NQ rev (1m)-62.45%
EPS NQ rev (3m)-76.82%
EPS NY rev (1m)-8.9%
EPS NY rev (3m)-13.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 13.91 | ||
| P/S | 1.26 | ||
| P/FCF | 6.46 | ||
| P/OCF | 6.46 | ||
| P/B | 2.1 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 4.62 |
EPS(TTM)21.59
EY8.35%
EPS(NY)18.59
Fwd EY7.19%
FCF(TTM)40.04
FCFY15.49%
OCF(TTM)40.04
OCFY15.49%
SpS204.9
BVpS122.97
TBVpS102.7
PEG (NY)N/A
PEG (5Y)0.68
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
WACC8.35%
ROIC/WACC0.51
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-13.9%
EPS Next 2Y5.86%
EPS Next 3Y7.76%
EPS Next 5Y1.66%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y10.06%
Revenue growth 5Y8.01%
Sales Q2Q%7.48%
Revenue Next Year6.7%
Revenue Next 2Y6.45%
Revenue Next 3Y6.21%
Revenue Next 5Y4.81%
EBIT growth 1Y75.05%
EBIT growth 3Y11.04%
EBIT growth 5Y13.52%
EBIT Next Year26.57%
EBIT Next 3Y9.12%
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%