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L

Loews NYSE:L Stock Report

Last Price

US$51.00

Market Cap

US$12.2b

7D

-5.5%

1Y

-3.7%

Updated

25 Sep, 2022

Data

Company Financials
L fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance1/6
Financial Health3/6
Dividends0/6

L Stock Overview

Loews Corporation provides commercial property and casualty insurance in the United States and internationally.

Loews Corporation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Loews
Historical stock prices
Current Share PriceUS$51.00
52 Week HighUS$68.20
52 Week LowUS$50.34
Beta0.81
1 Month Change-10.21%
3 Month Change-14.70%
1 Year Change-3.70%
3 Year Change-0.99%
5 Year Change6.56%
Change since IPO390.58%

Recent News & Updates

Aug 11

Loews Corporation Is A Key Addition To A Retirement Portfolio

Loews Corporation is a key addition to a retirement portfolio given the company's conglomerate nature and focus on growth. The company has aggressively repurchased shares with its earnings, and we expect its outstanding share count to decrease significantly. The company sold a large part of Altium Packaging and its Loews Hotels business continues to recover. We'd like to see additional diversification, but overall, the company is a key retirement portfolio addition. Loews Corporation (L) is a diversified conglomerate. The company has a market capitalization of roughly $13.5 billion and the ability to continue growing this asset base for the long run through several diversified businesses. That consistent long-term growth strength is worth paying close attention to as a part of a retirement portfolio. Loews Corporation Overview Loews Corporation has an impressive portfolio of assets distributed across several companies. Loews Corporation Loews Corporation's largest source of money is CNA Financial, a Chicago based insurance company it owns almost 90% of. The business continues to earn substantial premiums, although its value has stagnated since the late-90s. The business has a roughly $11 billion market capitalization, meaning that its ownership stake is roughly $10 billion. That makes up more than 70% of Loews Corporation's value. That stake provides hundreds of millions in annual cash flow. The company also has two entirely owned businesses, Boardwalk Pipelines and Loews Hotels & Co., along with a 53% in Altium Packaging. The 47% sale of Altium Packaging valued the overall business $2 billion. Loews Corporation 2Q 2022 Results Loews Corporation had a reasonable 2Q 2022, showing the continued strength of the company's assets. Loews Corporation The company has $3.5 billion in total portfolio effective cash. From a financial basis, the company's annualized net income is roughly $720 million. The company also earned a substantial $97 million in dividends from subsidiaries, supporting the core of its cash flow. The company repurchased 4.2 million shares for $254 million, something it's consistently done. We'd like to see the company continue to repurchase shares. The company is trading below book value showing the strength of its portfolio. The company does have $2.3 billion in total debt, with $1.2 billion in net cash across the business. Outside of the value that puts the total value of the company's stake at $12.5 billion. Loews Corporation Financial Trends Loews Corporation has impressive financial trends across its businesses. Loews Corporation The company's net cash position has remained roughly constant. Its cash position has trended up slightly but so too has the company's debt. Maintaining this constant with a reasonable net-debt is fair. The company has managed to grow book value per share and dividends from subsidiaries have been growing. The company has a dividend of just under 1% and it's been aggressively focused on reducing shares outstanding. The company has cut its shares outstanding by 75% over the last 5 years, although it hasn't driven substantial increase in the company's share prices. We see the continuance of this driving strong returns. The company has the financial strength to repurchase roughly 10% of its shares annually. Loews Corporation Subsidiary Growth Among the company's largest sources of potential strength is the growth of its subsidiaries. Loews Corporation Loews Corporation's Boardwalk Pipeline Partners is a small midstream company with long-term reliable contracts and substantial growth potential. The company has a mixture of gas and liquids storage capacity along with 14 thousand miles of pipelines moving 9.4 Bcf / day. The company extracts pay as it moves volumes across the pipelines. The company has $8.9 billion in backlog, with 96% based on firm contracts, representing backlog of almost 7 years of revenue for the company. The company has several different growth projects here that can bolt-on to its existing portfolio of assets, helping it to increase revenue at each stage of the process. Loews Corporation Another source of consistent growth for the company is its Loews Hotel business. The company has more than 16 thousand rooms here, with more than 1000 rooms under development. Many of these rooms are at "resort hotels" but the company has a strong distribution of its hotels throughout the United States. The business is 100% owned by Loews and has $135 million in adjusted EBITDA with $1.5 billion in adjusted mortgage debt. Finances were impacted heavily by COVID-19, the company's 2021 adjusted EBITDA was less than 60% of 2019 as the company saw only 55.2% occupancy versus 82.5% occupancy in 2019. As the company's operating metrics improve, we expect EBITDA to recover significantly. For perspective, compared to Marriott (NASDAQ: MAR), the company's hotel business would be valued at roughly $3 billion. Loews Corporation Cash Usage Loews Corporations sees itself as undervalued and as a result views buying back shares as an optimal decision. Loews Corporation We feel that the company's private subsidiaries are significantly undervalued. We'd like to see the company make several decisions to unlock value. First, we'd like to see the company reduce the stake of its CNA stake. The stake continues to make up the majority of the company's values tying their values closely together.

Shareholder Returns

LUS InsuranceUS Market
7D-5.5%-4.2%-5.2%
1Y-3.7%-2.9%-23.0%

Return vs Industry: L matched the US Insurance industry which returned -2.9% over the past year.

Return vs Market: L exceeded the US Market which returned -23% over the past year.

Price Volatility

Is L's price volatile compared to industry and market?
L volatility
L Average Weekly Movement3.2%
Insurance Industry Average Movement4.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: L is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: L's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196910,340James Tischhttps://www.loews.com

Loews Corporation provides commercial property and casualty insurance in the United States and internationally. The company offers specialty insurance products, such as management and professional liability, and other coverage products; surety and fidelity bonds; property insurance products that include property, marine and boiler, and machinery coverages; and casualty insurance products, such as workers’ compensation, general and product liability, and commercial auto and umbrella coverages. It also provides loss-sensitive insurance programs; and warranty, risk management, information, and claims administration services.

Loews Corporation Fundamentals Summary

How do Loews's earnings and revenue compare to its market cap?
L fundamental statistics
Market CapUS$12.17b
Earnings (TTM)US$1.08b
Revenue (TTM)US$13.82b

11.3x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
L income statement (TTM)
RevenueUS$13.82b
Cost of RevenueUS$9.19b
Gross ProfitUS$4.64b
Other ExpensesUS$3.56b
EarningsUS$1.08b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.53
Gross Margin33.54%
Net Profit Margin7.82%
Debt/Equity Ratio57.2%

How did L perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

6%

Payout Ratio