NYSE:TRV

Stock Analysis Report

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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. More Details


Snowflake Analysis

Excellent balance sheet established dividend payer.


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

Stable Share Price: TRV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

12.6%

TRV

3.0%

US Insurance

0.4%

US Market


1 Year Return

-2.6%

TRV

-9.5%

US Insurance

17.8%

US Market

Return vs Industry: TRV exceeded the US Insurance industry which returned -9.5% over the past year.

Return vs Market: TRV underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

TRVIndustryMarket
7 Day12.6%3.0%0.4%
30 Day16.5%8.2%6.1%
90 Day9.5%3.4%8.9%
1 Year0.07%-2.6%-7.0%-9.5%20.5%17.8%
3 Year2.1%-5.0%3.0%-4.4%42.3%32.9%
5 Year24.5%10.6%39.5%21.9%84.2%63.4%

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

Valuation

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

21.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TRV ($125.97) is trading below our estimate of fair value ($160.92)

Significantly Below Fair Value: TRV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TRV's PE Ratio (14.3x) is in line with the US Insurance industry average.

PE vs Market: TRV is good value based on its PE Ratio (14.3x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: TRV is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

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


Next Steps

Future Growth

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

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRV's forecast earnings growth (12.3% per year) is above the savings rate (2.2%).

Earnings vs Market: TRV's earnings (12.3% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: TRV's revenue (5% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: TRV's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRV's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has Travelers Companies performed over the past 5 years?

-9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRV has high quality earnings.

Growing Profit Margin: TRV's current net profit margins (7.1%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: TRV's earnings have declined by 9% per year over the past 5 years.

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

Earnings vs Industry: TRV had negative earnings growth (-4.7%) over the past year, making it difficult to compare to the Insurance industry average (-3.2%).


Return on Equity

High ROE: TRV's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is Travelers Companies's financial position?


Financial Position Analysis

Short Term Liabilities: TRV's short term assets ($28.4B) do not cover its short term liabilities ($70.6B).

Long Term Liabilities: TRV's short term assets ($28.4B) exceed its long term liabilities ($17.9B).


Debt to Equity History and Analysis

Debt Level: TRV's debt to equity ratio (25.3%) is considered satisfactory.

Reducing Debt: TRV's debt to equity ratio has reduced from 28% to 25.3% over the past 5 years.

Debt Coverage: TRV's debt is well covered by operating cash flow (85.5%).

Interest Coverage: TRV's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet


Next Steps

Dividend

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

2.70%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: TRV's dividend (2.7%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: TRV's dividend (2.7%) is low compared to the top 25% of dividend payers in the US market (4.56%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.9%), TRV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TRV's dividends in 3 years are forecast to be well covered by earnings (26.5% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Alan Schnitzer (54 yo)

4.83yrs

Tenure

US$16,778,809

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 ($USD16.78M) is above average for companies of similar size in the US market ($USD11.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alan Schnitzer
Chairman & CEO4.83yrsUS$16.78m0.069%
$ 21.9m
Daniel Frey
Executive VP & CFO2.08yrsUS$4.23m0.00059%
$ 188.3k
Avrohom Kess
Vice Chairman & Chief Legal Officer3.83yrsUS$6.30m0.0076%
$ 2.4m
William Heyman
Vice Chairman16.5yrsUS$6.12m0.096%
$ 30.7m
Gregory Toczydlowski
Executive VP & President of Business Insurance11.25yrsUS$5.26m0.0053%
$ 1.7m
Mojgan Lefebvre
Executive VP1.42yrsno datano data
David Rowland
Executive VP & Co-Chief Investment Officer1.17yrsno datano data
Daniel Yin
Executive VP & Co-Chief Investment Officer1.17yrsno datano data
Andy Bessette
Executive VP & Chief Administrative Officer18.75yrsno data0.0056%
$ 1.8m
Abbe Goldstein
Senior Vice President of Investor Relations2.42yrsno datano data
Lisa Caputo
Executive Vice President of Marketing3.83yrsno datano data
Diane Kurtzman
Executive VP & Chief Human Resources Officer0.75yrno data0.00018%
$ 57.4k

3.1yrs

Average Tenure

54.5yo

Average Age

Experienced Management: TRV's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alan Schnitzer
Chairman & CEO4.83yrsUS$16.78m0.069%
$ 21.9m
Laurie Thomsen
Independent Director16.5yrsUS$305.01k0.00098%
$ 312.7k
Donald Shepard
Independent Director10.83yrsUS$330.01kno data
Todd Schermerhorn
Independent Lead Director1.75yrsUS$351.36kno data
Janet Dolan
Independent Director19.42yrsUS$325.01kno data
Clarence Otis
Independent Director3.17yrsUS$305.01kno data
Patricia Higgins
Independent Director13.42yrsUS$305.01k0.000050%
$ 16.0k
Philip Ruegger
Independent Director6.67yrsUS$317.21k0.0092%
$ 2.9m
Alan Beller
Independent Director13.42yrsUS$305.01kno data
Elizabeth Beshel Robinson
Independent Director0.42yrno data0%
$ 0
William Kane
Independent Director8.42yrsUS$330.01k0.00031%
$ 98.9k

8.4yrs

Average Tenure

69yo

Average Age

Experienced Board: TRV's board of directors are considered experienced (8.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TRV 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

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


Key Information

  • Name: The Travelers Companies, Inc.
  • Ticker: TRV
  • Exchange: NYSE
  • Founded: 1853
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$31.909b
  • Shares outstanding: 253.31m
  • 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
PA9XTRA (XETRA Trading Platform)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
PA9ETLX (Eurotlx)YesCommon SharesITEURJan 1997
TRVVBASE (Buenos Aires Stock Exchange)CEDEAR EACH 6 REP 1ARARSFeb 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 Analysis2020/10/26 05:28
End of Day Share Price2020/10/23 00:00
Earnings2020/09/30
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.