DB:LTR

Stock Analysis Report

Executive Summary

Loews Corporation, through its subsidiaries, provides commercial property and casualty insurance in the United States and internationally.


Snowflake Analysis

Questionable track record and overvalued.

Share Price & News

How has Loews's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LTR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

LTR

1.1%

DE Insurance

0.5%

DE Market


1 Year Return

13.3%

LTR

27.9%

DE Insurance

15.9%

DE Market

Return vs Industry: LTR underperformed the German Insurance industry which returned 29.2% over the past year.

Return vs Market: LTR underperformed the German Market which returned 14.8% over the past year.


Shareholder returns

LTRIndustryMarket
7 Day0.4%1.1%0.5%
30 Day0.9%0.7%1.7%
90 Day3.1%3.9%6.1%
1 Year13.9%13.3%33.5%27.9%19.6%15.9%
3 Year11.9%10.2%66.9%46.7%17.7%7.3%
5 Year37.9%34.1%96.4%57.3%28.7%11.1%

Price Volatility Vs. Market

How volatile is Loews's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Loews undervalued compared to its fair value and its price relative to the market?

29.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LTR (€46.8) is trading above our estimate of fair value (€38.73)

Significantly Below Fair Value: LTR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LTR is poor value based on its PE Ratio (29.1x) compared to the Insurance industry average (11.9x).

PE vs Market: LTR is poor value based on its PE Ratio (29.1x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LTR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LTR is good value based on its PB Ratio (0.8x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Loews forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if LTR's forecast earnings growth is above the savings rate (-0.4%).

Earnings vs Market: Insufficient data to determine if LTR's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LTR's revenue (5.9% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: LTR's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LTR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Loews performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LTR has high quality earnings.

Growing Profit Margin: LTR's current net profit margins (3.8%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: LTR's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: LTR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LTR had negative earnings growth (-57.1%) over the past year, making it difficult to compare to the Insurance industry average (7.8%).


Return on Equity

High ROE: LTR's Return on Equity (2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Loews's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LTR has a low level of unsold assets or inventory.

Debt Coverage by Assets: LTR's debt is covered by short term assets (assets are 1.1x debt).


Financial Institutions Analysis

Asset Level: LTR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if LTR has a sufficient allowance for bad loans.

Low Risk Liabilities: LTR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if LTR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LTR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if LTR has an appropriate level of bad loans.


Next Steps

Dividend

What is Loews's current dividend yield, its reliability and sustainability?

0.48%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%1.4%markettop25%3.5%industryaverage3.7%forecastin3Years0.5%

Current dividend yield vs market & industry

Notable Dividend: LTR's dividend (0.48%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: LTR's dividend (0.48%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: LTR is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: LTR is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: LTR is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LTR's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Loews's salary, the management and board of directors tenure and is there insider trading?

9.5yrs

Average management tenure


CEO

James Tisch (66yo)

22yrs

Tenure

US$5,714,569

Compensation

Mr. James S. Tisch, also known as Jim, has been President and Chief Executive Officer and member of the Officer of the President of Loews Corporation, the holding Company of CNA Financial Corporation since ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD5.71M) is about average for companies of similar size in the German market ($USD4.52M).

Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.5yrs

Average Tenure

65yo

Average Age

Experienced Management: LTR's management team is seasoned and experienced (9.5 years average tenure).


Board Age and Tenure

14.8yrs

Average Tenure

67yo

Average Age

Experienced Board: LTR's board of directors are seasoned and experienced ( 14.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell€72,43209 Sep 19
Marc Alpert
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,626
Max Price€44.55
Sell€521,85505 Jun 19
Kenneth Siegel
EntityIndividual
Role
Senior Key Executive
Senior Vice President
Shares11,037
Max Price€47.28
Sell€59,52121 May 19
Philip Laskawy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,280
Max Price€46.50
Sell€216,76930 Apr 19
Marc Alpert
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares4,767
Max Price€45.47
Sell€483,42805 Mar 19
Mark Schwartz
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares11,415.8
Max Price€42.58

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Rick Scott (66yo)

    Senior VP & Chief Investment Officer

    • Tenure: 11yrs
  • James Tisch (66yo)

    President

    • Tenure: 22yrs
    • Compensation: US$5.71m
  • Jonathan Tisch (65yo)

    Co-Chairman of the Board

    • Tenure: 14yrs
    • Compensation: US$4.92m
  • David Edelson (60yo)

    Senior VP & CFO

    • Tenure: 5.7yrs
    • Compensation: US$5.53m
  • Mary Skafidas

    Vice President of IR & Corporate Communications

    • Tenure: 8yrs
  • Mark Schwartz (65yo)

    VP & Chief Accounting Officer

    • Tenure: 14.5yrs
  • Marc Alpert (56yo)

    Senior VP

    • Kenneth Siegel (62yo)

      Senior Vice President

      • Compensation: US$5.23m
    • Edmund Unneland

      Treasurer

      • Tenure: 7.4yrs
    • Laura Cushing

      Vice President of Human Resources


      Board Members

      • Phil Laskawy (78yo)

        Independent Director

        • Tenure: 17yrs
        • Compensation: US$225.00k
      • Andrew Tisch (70yo)

        Co-Chairman of the Board

        • Tenure: 14yrs
        • Compensation: US$4.47m
      • Mark Diker (84yo)

        Independent Director

        • Tenure: 17yrs
        • Compensation: US$235.00k
      • James Tisch (66yo)

        President

        • Tenure: 22yrs
        • Compensation: US$5.71m
      • Jonathan Tisch (65yo)

        Co-Chairman of the Board

        • Tenure: 14yrs
        • Compensation: US$4.92m
      • Tony Welters (64yo)

        Independent Director

        • Tenure: 6.3yrs
        • Compensation: US$210.00k
      • Joseph Bower (80yo)

        Independent Director

        • Tenure: 19yrs
        • Compensation: US$265.00k
      • Paul Fribourg (65yo)

        Lead Director

        • Compensation: US$285.00k
      • Walter Harris (67yo)

        Independent Director

        • Tenure: 15.5yrs
        • Compensation: US$275.00k
      • Ann Berman (67yo)

        Independent Director

        • Tenure: 14yrs
        • Compensation: US$225.00k

      Company Information

      Loews Corporation's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Loews Corporation
      • Ticker: LTR
      • Exchange: DB
      • Founded: 1969
      • Industry: Property and Casualty Insurance
      • Sector: Insurance
      • Market Cap: US$15.583b
      • Listing Market Cap: US$14.043b
      • Shares outstanding: 297.44m
      • Website: https://www.loews.com

      Number of Employees


      Location

      • Loews Corporation
      • 667 Madison Avenue
      • New York
      • New York
      • 10065
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      LNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
      LTRDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
      0JVILSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

      Biography

      Loews Corporation, through its subsidiaries, provides commercial property and casualty insurance in the United States and internationally. It operates through CNA Financial Corporation; Diamond Offshore Drilling, Inc.; Boardwalk Pipeline Partners, LP; and Loews Hotels Holding Corporation segments. The company offers specialty insurance products, such as management and professional liability insurance coverages and products; surety and fidelity bonds; and warranty and alternative risk services. It also provides commercial property insurance products include standard and excess property, marine, and boiler and machinery coverages; casualty insurance products comprise workers’ compensation, general and product liability, commercial auto, and umbrella coverages; and loss-sensitive insurance programs; and warranty, risk management, information, and claims administration services. The company markets its insurance products and services primarily through independent agents, brokers, and managing general underwriters. In addition, the company offers contract drilling services through a fleet of 17 offshore drilling rigs consisting of 4 drillships and 13 semisubmersible rigs. Further, it is involved in the transportation and storage of natural gas and natural gas liquids (NGLs). It owns and operates natural gas pipelines covering approximately 13,805 miles of interconnected pipelines; approximately 455 miles of NGL pipelines in Louisiana and Texas; and 14 underground storage fields with aggregate working gas capacity of approximately 205 billion cubic feet of natural gas. Additionally, it operates a chain of 24 hotels in the United States and Canada. The company was incorporated in 1969 and is headquartered in New York, New York. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/21 20:48
      End of Day Share Price2020/01/21 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.