NYSE:L

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential with questionable track record.

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

-1.6%

L

0.03%

US Insurance

0.7%

US Market


1 Year Return

3.4%

L

14.6%

US Insurance

12.9%

US Market

Return vs Industry: L underperformed the US Insurance industry which returned 14.6% over the past year.

Return vs Market: L underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

LIndustryMarket
7 Day-1.6%0.03%0.7%
30 Day-1.6%1.6%4.4%
90 Day2.7%2.0%7.2%
1 Year4.0%3.4%17.4%14.6%15.4%12.9%
3 Year16.1%14.4%37.2%26.6%49.1%39.5%
5 Year20.2%16.8%64.9%45.2%62.7%44.7%

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?

28.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: L ($50.16) is trading above our estimate of fair value ($10.54)

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 (28x) compared to the Insurance industry average (17.1x).

PE vs Market: L is poor value based on its PE Ratio (28x) compared to the US market (18.2x).


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 (0.8x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

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

24.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: L's forecast earnings growth (24.1% per year) is above the savings rate (2.7%).

Earnings vs Market: L's earnings (24.1% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: L's revenue (5.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: L'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 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?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: L has high quality earnings.

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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: L had negative earnings growth (-57.1%) over the past year, making it difficult to compare to the Insurance industry average (-10.4%).


Return on Equity

High ROE: L'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: 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?

0.50%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%1.4%markettop25%3.6%industryaverage2.3%forecastin3Years0.5%

Current dividend yield vs market & industry

Notable Dividend: L's dividend (0.5%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: L's dividend (0.5%) is low compared to the top 25% of dividend payers in the US market (3.64%).


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

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

9.3yrs

Average management tenure


CEO

James Tisch (66yo)

21.8yrs

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 ($USD5.71M) is below average for companies of similar size in the US market ($USD11.04M).

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


Management Age and Tenure

9.3yrs

Average Tenure

65yo

Average Age

Experienced Management: L's management team is seasoned and experienced (9.3 years average tenure).


Board Age and Tenure

14.6yrs

Average Tenure

67yo

Average Age

Experienced Board: L's board of directors are seasoned and experienced ( 14.6 years average tenure).


Insider Trading

Insider Buying: L insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$80,09709 Sep 19
Marc Alpert
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,626
Max PriceUS$49.26
SellUS$586,94805 Jun 19
Kenneth Siegel
EntityIndividual
Role
Senior Key Executive
Senior Vice President
Shares11,037
Max PriceUS$53.18
SellUS$66,49621 May 19
Philip Laskawy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,280
Max PriceUS$51.95
SellUS$242,87930 Apr 19
Marc Alpert
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares4,767
Max PriceUS$50.95
SellUS$546,24605 Mar 19
Mark Schwartz
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares11,415.8
Max PriceUS$48.11

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: 10.8yrs
  • James Tisch (66yo)

    President

    • Tenure: 21.8yrs
    • Compensation: US$5.71m
  • Jonathan Tisch (65yo)

    Co-Chairman of the Board

    • Tenure: 13.8yrs
    • Compensation: US$4.92m
  • David Edelson (60yo)

    Senior VP & CFO

    • Tenure: 5.5yrs
    • Compensation: US$5.53m
  • Mary Skafidas

    Vice President of IR & Corporate Communications

    • Tenure: 7.8yrs
  • Mark Schwartz (65yo)

    VP & Chief Accounting Officer

    • Tenure: 14.3yrs
  • Marc Alpert (56yo)

    Senior VP

    • Tenure: 0yrs
  • Kenneth Siegel (62yo)

    Senior Vice President

    • Tenure: 0yrs
    • Compensation: US$5.23m
  • Edmund Unneland

    Treasurer

    • Tenure: 7.3yrs
  • Laura Cushing

    Vice President of Human Resources

    • Tenure: 0yrs

Board Members

  • Phil Laskawy (78yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$225.00k
  • Andrew Tisch (70yo)

    Co-Chairman of the Board

    • Tenure: 13.8yrs
    • Compensation: US$4.47m
  • Mark Diker (84yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$235.00k
  • James Tisch (66yo)

    President

    • Tenure: 21.8yrs
    • Compensation: US$5.71m
  • Jonathan Tisch (65yo)

    Co-Chairman of the Board

    • Tenure: 13.8yrs
    • Compensation: US$4.92m
  • Tony Welters (64yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$210.00k
  • Joseph Bower (80yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$265.00k
  • Paul Fribourg (65yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$285.00k
  • Walter Harris (67yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$275.00k
  • Ann Berman (67yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$225.00k

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$14.920b
  • 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 Dr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 23:44
End of Day Share Price2019/11/15 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.