DB:PA9

Stock Analysis Report

Travelers Companies

Executive Summary

The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United states and internationally.

Snowflake

Fundamentals

Established dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.7%

PA9

2.9%

DE Insurance

1.4%

DE Market


1 Year Return

15.5%

PA9

22.0%

DE Insurance

3.7%

DE Market

Return vs Industry: PA9 underperformed the German Insurance industry which returned 22% over the past year.

Return vs Market: PA9 exceeded the German Market which returned 3.7% over the past year.


Shareholder returns

PA9IndustryMarket
7 Day-1.7%2.9%1.4%
30 Day-5.1%4.1%1.3%
90 Day-6.9%3.4%3.4%
1 Year18.2%15.5%27.3%22.0%7.0%3.7%
3 Year34.5%25.5%70.6%50.0%18.5%8.3%
5 Year85.2%65.2%119.6%75.9%42.2%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

40.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PA9 (€125.4) is trading below our estimate of fair value (€209.17)

Significantly Undervalued: PA9 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PA9 is poor value based on its PE Ratio (13.9x) compared to the Insurance industry average (13.4x).

PE vs Market: PA9 is good value based on its PE Ratio (13.9x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: PA9 is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: PA9 is overvalued based on its PB Ratio (1.4x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Travelers Companies forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PA9's forecast earnings growth (2.6% per year) is above the savings rate (0.2%).

Earnings vs Market: PA9's earnings (2.6% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: PA9's earnings are forecast to grow, but not significantly.

Revenue vs Market: PA9's revenue (3% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: PA9's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PA9's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has Travelers Companies performed over the past 5 years?

-10.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PA9's earnings have declined by -10.5% per year over the past 5 years.

Accelerating Growth: PA9's earnings growth over the past year (31.7%) exceeds its 5-year average (-10.5% per year).

Earnings vs Industry: PA9 earnings growth over the past year (31.7%) exceeded the Insurance industry 15.2%.


Return on Equity

High ROE: PA9's Return on Equity (10.6%) is considered low.


Return on Assets

ROA vs Industry: PA9 has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: PA9's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Travelers Companies'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: PA9 has a low level of unsold assets or inventory.

Debt Coverage by Assets: PA9's debt is covered by short term assets (assets are 3.937930x debt).


Financial Institutions Analysis

Asset Level: PA9's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if PA9 has a sufficient allowance for bad loans.

Low Risk Liabilities: PA9 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PA9 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PA9 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PA9 has an appropriate level of bad loans.


Next Steps

Dividend

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

2.33%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.5%markettop25%3.8%industryaverage3.9%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PA9's dividend (2.33%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: PA9's dividend (2.33%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: PA9's dividends per share have been stable in the past 10 years.

Growing Dividend: PA9's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31%), PA9's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PA9's dividends in 3 years are forecast to be well covered by earnings (30% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Alan Schnitzer (53yo)

3.8yrs

Tenure

US$14,648,213

Compensation

Mr. Alan David Schnitzer is Chairman of the Board of Travelers Companies, Inc. since August 2017 and Chief Executive Officer and Director since December 2015. Mr. Schnitzer joined the Travelers Companies i ...


CEO Compensation Analysis

Compensation vs. Market: Alan's total compensation ($USD14.65M) is about average for companies of similar size in the German market ($USD4.64M).

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


Management Age and Tenure

1.1yrs

Average Tenure

53yo

Average Age

Experienced Management: PA9's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

8.6yrs

Average Tenure

68.5yo

Average Age

Experienced Board: PA9's board of directors are considered experienced (8.6 years average tenure).


Insider Trading

Insider Buying: PA9 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$93,06319 Aug 19
Philip Ruegger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares700
Max PriceUS$132.95
SellUS$465,60913 Aug 19
Michael Klein
EntityIndividual
Shares3,545.43
Max PriceUS$131.33
SellUS$259,46202 May 19
Douglas Russell
EntityIndividual
Shares2,040
Max PriceUS$127.19
SellUS$375,10729 Apr 19
Douglas Russell
EntityIndividual
Shares2,991
Max PriceUS$125.41
SellUS$519,03827 Feb 19
Gregory Toczydlowski
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Business Insurance
Shares4,450
Max PriceUS$116.64
SellUS$561,43625 Feb 19
Michael Klein
EntityIndividual
Shares4,850
Max PriceUS$115.76
SellUS$937,08825 Feb 19
William Heyman
EntityIndividual
Role
Senior Key Executive
Vice Chairman
Shares8,138
Max PriceUS$115.15
SellUS$915,82829 Jan 19
William Heyman
EntityIndividual
Role
Senior Key Executive
Vice Chairman
Shares8,323
Max PriceUS$110.04
SellUS$185,73215 Nov 18
Andy Bessette
EntityIndividual
Shares1,666
Max PriceUS$111.48

Ownership Breakdown


Management Team

  • Bill Heyman (70yo)

    Vice Chairman

    • Tenure: 15.5yrs
    • Compensation: US$6.62m
  • Alan Schnitzer (53yo)

    Chairman & CEO

    • Tenure: 3.8yrs
    • Compensation: US$14.65m
  • Jay Benet (66yo)

    Vice Chairman

    • Tenure: 1.1yrs
    • Compensation: US$5.90m
  • Mojgan Lefebvre (53yo)

    Executive VP

    • Tenure: 0.5yrs
  • Avrohom Kess (50yo)

    Vice Chairman & Chief Legal Officer

    • Tenure: 2.8yrs
    • Compensation: US$6.01m
  • Greg Toczydlowski (52yo)

    Executive VP & President of Business Insurance

    • Tenure: 10.3yrs
    • Compensation: US$4.86m
  • David Rowland

    Executive VP & Co-Chief Investment Officer

    • Tenure: 0.2yrs
  • Daniel Yin

    Executive VP & Co-Chief Investment Officer

    • Tenure: 0.2yrs
  • Wendy Skjerven

    VP, Corporate Secretary & Group General Counsel

    • Tenure: 0yrs
  • Dan Frey (54yo)

    Executive VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$1.81m

Board Members

  • Laurie Thomsen (62yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$304.94k
  • Don Shepard (72yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$329.94k
  • Todd Schermerhorn (58yo)

    Lead Director

    • Tenure: 0.8yrs
    • Compensation: US$329.94k
  • Janet Dolan (69yo)

    Independent Director

    • Tenure: 18.4yrs
    • Compensation: US$324.94k
  • Clarence Otis (63yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$304.94k
  • Patricia Higgins (69yo)

    Director

    • Tenure: 12.4yrs
    • Compensation: US$304.94k
  • Pete Ruegger (69yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$304.94k
  • Alan Schnitzer (53yo)

    Chairman & CEO

    • Tenure: 3.8yrs
    • Compensation: US$14.65m
  • Alan Beller (69yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$304.94k
  • William Kane (68yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$329.94k

Company Information

The Travelers Companies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Travelers Companies, Inc.
  • Ticker: PA9
  • Exchange: DB
  • Founded: 1853
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$36.579b
  • Listing Market Cap: US$32.837b
  • Shares outstanding: 260.39m
  • Website: https://www.travelers.com

Number of Employees


Location

  • The Travelers Companies, Inc.
  • 485 Lexington Avenue
  • New York
  • New York
  • 10017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PA9DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1997
TRVNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1997
TRV *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1997
TRVSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDJan 1997
0R03LSE (London Stock Exchange)YesCommon SharesGBUSDJan 1997
TRVWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1997
TRVVBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 0.33 SHSARARSFeb 2012
TRVC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REPR 1/2 COM USD0.00BRBRLApr 2016

Biography

The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 20:49
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.