NYSE:L

Stock Analysis Report

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Market Cap

US$14.8b

Last Updated

2021/06/13 22:55 UTC

Data Sources

Company Financials

Executive Summary

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


Snowflake Analysis

Overvalued with weak fundamentals.


Similar Companies

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: 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.


Market Performance


7 Day Return

-3.1%

L

-1.9%

US Insurance

0.8%

US Market


1 Year Return

70.4%

L

41.9%

US Insurance

44.4%

US Market

Return vs Industry: L exceeded the US Insurance industry which returned 41.9% over the past year.

Return vs Market: L exceeded the US Market which returned 44.3% over the past year.


Shareholder returns

LIndustryMarket
7 Day-3.1%-1.9%0.8%
30 Day-4.5%-1.8%3.0%
90 Day8.1%5.0%4.4%
1 Year71.3%70.4%45.6%41.9%46.7%44.4%
3 Year14.6%12.7%35.9%26.0%60.3%50.4%
5 Year44.3%40.5%85.7%62.6%128.3%102.8%

Long-Term 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

Valuation

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

0.86x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: L ($56.25) is trading above our estimate of fair value ($14.7)

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


Price To Earnings Ratio

PE vs Industry: L is unprofitable, so we can't compare its PE Ratio to the US Insurance industry average.

PE vs Market: L is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: L is good value based on its PB Ratio (0.9x) compared to the US Insurance industry average (1.1x).


Future Growth

How is Loews forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.0%

Forecasted Insurance industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Loews has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Loews performed over the past 5 years?

-31.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: L is currently unprofitable.

Growing Profit Margin: L is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: L is unprofitable, and losses have increased over the past 5 years at a rate of 31.4% per year.

Accelerating Growth: Unable to compare L's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: L is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (51.9%).


Return on Equity

High ROE: L has a negative Return on Equity (0.25%), as it is currently unprofitable.


Financial Health

How is Loews's financial position?


Financial Position Analysis

Short Term Liabilities: L's short term assets ($15.3B) do not cover its short term liabilities ($30.3B).

Long Term Liabilities: L's short term assets ($15.3B) do not cover its long term liabilities ($31.2B).


Debt to Equity History and Analysis

Debt Level: L's debt to equity ratio (49.3%) is considered high.

Reducing Debt: L's debt to equity ratio has increased from 45.8% to 49.3% over the past 5 years.

Debt Coverage: L's debt is not well covered by operating cash flow (17%).

Interest Coverage: L is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

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

0.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: L's dividend (0.44%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: L's dividend (0.44%) is low compared to the top 25% of dividend payers in the US market (3.35%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: L is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.4yrs

Average management tenure


CEO

James Tisch (67 yo)

23.42yrs

Tenure

US$7,007,024

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 ($USD7.01M) is below average for companies of similar size in the US market ($USD11.17M).

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


Leadership Team

Experienced Management: L's management team is seasoned and experienced (9.4 years average tenure).


Board Members

Experienced Board: L's board of directors are seasoned and experienced ( 15.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Loews Corporation
  • Ticker: L
  • Exchange: NYSE
  • Founded: 1969
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$14.804b
  • Shares outstanding: 263.18m
  • Website: https://www.loews.com

Number of Employees


Location

  • Loews Corporation
  • 667 Madison Avenue
  • New York
  • New York
  • 10065-8087
  • United States

Listings


Biography

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 liabilit...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 22:55
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.