NYSE:L

Stock Analysis Report

Executive Summary

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

Rewards

PE ratio (15.9x) is below the US market (17.1x)

Earnings grew by 46.5% over the past year

Risk Analysis

No risks detected for L from our risk checks.


Snowflake Analysis

Solid track record and slightly overvalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.9%

L

-6.7%

US Insurance

-7.6%

US Market


1 Year Return

2.9%

L

9.3%

US Insurance

10.2%

US Market

Return vs Industry: L underperformed the US Insurance industry which returned 9.3% over the past year.

Return vs Market: L underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

LIndustryMarket
7 Day-8.9%-6.7%-7.6%
30 Day-3.6%-2.8%-4.5%
90 Day-4.1%-2.1%-0.6%
1 Year3.4%2.9%11.8%9.3%12.5%10.2%
3 Year3.9%2.4%25.3%15.8%37.1%28.3%
5 Year23.8%20.4%61.6%42.5%60.8%43.2%

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?

15.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: L ($48.95) is trading above our estimate of fair value ($24.09)

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


Price To Earnings Ratio

PE vs Industry: L is poor value based on its PE Ratio (15.9x) compared to the Insurance industry average (12.4x).

PE vs Market: L is good value based on its PE Ratio (15.9x) compared to the US market (17.1x).


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 (0.7x) compared to the US 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?

3.1%

Forecasted Insurance industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if L's forecast earnings growth is above the savings rate (1.7%).

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

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

Revenue vs Market: Insufficient data to determine if L's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if L's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if L'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?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: L has high quality earnings.

Growing Profit Margin: L's current net profit margins (6.2%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: L's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: L's earnings growth over the past year (46.5%) exceeds its 5-year average (9.9% per year).

Earnings vs Industry: L earnings growth over the past year (46.5%) exceeded the Insurance industry 34.8%.


Return on Equity

High ROE: L's Return on Equity (4%) is considered low.


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: L has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

0.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: L's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: L's dividend (0.51%) is low compared to the top 25% of dividend payers in the US market (3.96%).


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?

8.1yrs

Average management tenure


CEO

James Tisch (66yo)

22.1yrs

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 ($USD5.71M) is below average for companies of similar size in the US market ($USD10.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Tisch
President22.1yrsUS$5.71m5.5% $774.8m
David Edelson
Senior VP & CFO5.8yrsUS$5.53m0.0079% $1.1m
Kenneth Siegel
Senior Vice President0yrsUS$5.23mno data
Richard Scott
Senior VP & Chief Investment Officer11.1yrsno data0.0091% $1.3m
Mark Schwartz
VP & Chief Accounting Officer14.6yrsno datano data
Mary Skafidas
Vice President of IR & Corporate Communications8.1yrsno datano data
Marc Alpert
Senior VP3.6yrsno datano data
Benjamin Tisch
Vice President of Corporate Development0yrsno datano data
Laura Cushing
Vice President of Human Resources0yrsno datano data
Edmund Unneland
Treasurer7.5yrsno datano data

8.1yrs

Average Tenure

62yo

Average Age

Experienced Management: L's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Tisch
President22.1yrsUS$5.71m5.5% $774.8m
Philip Laskawy
Independent Director17.1yrsUS$225.00k0.0025% $356.4k
Andrew Tisch
Co-Chairman of the Board14.1yrsUS$4.47m5.15% $724.9m
Charles Diker
Independent Director17.1yrsUS$235.00k0.0034% $471.9k
Jonathan Tisch
Co-Chairman of the Board14.1yrsUS$4.92m3.37% $474.0m
Anthony Welters
Independent Director6.3yrsUS$210.00k0.0019% $270.5k
Joseph Bower
Independent Director19.1yrsUS$265.00k0.0039% $555.0k
Paul Fribourg
Lead Director0yrsUS$285.00kno data
Walter Harris
Independent Director15.6yrsUS$275.00k0.0044% $618.4k
Ann Berman
Independent Director14.1yrsUS$225.00kno data

15.6yrs

Average Tenure

67yo

Average Age

Experienced Board: L's board of directors are seasoned and experienced ( 15.6 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.


Recent Insider Transactions

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$14.086b
  • Shares outstanding: 287.77m
  • Website: https://www.loews.com

Number of Employees


Location

  • Loews Corporation
  • 667 Madison Avenue
  • New York
  • New York
  • 10065-8087
  • 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
L1OE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Biography

Loews Corporation provides commercial property and casualty insurance in the United States and internationally. It operates through five segments: CNA Financial Corporation; Diamond Offshore Drilling, Inc.; Boardwalk Pipeline Partners, LP; Loews Hotels Holding Corporation; and Corporate segments. The company offers specialty insurance products, such as management and professional liability coverages and products; and surety and fidelity bonds. It also provides commercial property insurance products that include property, marine, and boiler and machinery coverages; casualty insurance products comprising workers’ compensation, general and product liability, commercial auto, and umbrella coverages; loss-sensitive insurance programs; and warranty, risk management, information, and claims administration services. The company markets its insurance products and services through independent agents, brokers, and managing general underwriters. In addition, it offers contract drilling services through a fleet of 15 offshore drilling rigs consisting of 4 drillships and 11 semisubmersible rigs. Further, the company is involved in the transportation and storage of natural gas and natural gas liquids (NGLs) through natural gas pipelines covering approximately 13,610 miles of interconnected pipelines; 455 miles of NGL pipelines in Louisiana and Texas; and 14 underground storage fields with an aggregate gas capacity of approximately 205 billion cubic feet of natural gas. Additionally, the company operates a chain of 26 hotels; and develops, manufactures, and markets a range of extrusion blow-molded and injection molded plastic containers for customers in the pharmaceutical, dairy, household chemicals, food/nutraceuticals, industrial/specialty chemicals, and water and beverage/juice segments, as well as manufactures commodity and differentiated plastic resins from recycled plastic materials. Loews Corporation 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 Analysis2020/02/26 23:48
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.