NYSE:TRV

Stock Analysis Report

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Market Cap

US$37.2b

Last Updated

2021/07/31 05:42 UTC

Data Sources

Company Financials +

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

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


Market Performance


7 Day Return

0.7%

TRV

0.8%

US Insurance

-0.5%

US Market


1 Year Return

30.2%

TRV

30.9%

US Insurance

35.9%

US Market

Return vs Industry: TRV matched the US Insurance industry which returned 30.9% over the past year.

Return vs Market: TRV underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

TRVIndustryMarket
7 Day0.7%0.8%-0.5%
30 Day-1.9%-0.4%0.3%
90 Day-3.7%-2.5%3.1%
1 Year33.4%30.2%34.2%30.9%38.0%35.9%
3 Year23.5%14.8%34.5%24.5%62.9%52.7%
5 Year41.4%25.6%74.9%53.2%121.7%97.3%

Long-Term 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?

41.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TRV ($148.92) is trading below our estimate of fair value ($254.58)

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


Price To Earnings Ratio

PE vs Industry: TRV is good value based on its PE Ratio (10x) compared to the US Insurance industry average (10.7x).

PE vs Market: TRV is good value based on its PE Ratio (10x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: TRV is poor value based on its PEG Ratio (17.6x)


Price to Book Ratio

PB vs Industry: TRV is overvalued based on its PB Ratio (1.3x) compared to the US Insurance industry average (1.1x).


Future Growth

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

0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRV's forecast earnings growth (0.6% per year) is below the savings rate (2%).

Earnings vs Market: TRV's earnings (0.6% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: TRV's revenue (3.4% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: TRV's revenue (3.4% 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 (12%).


Past Performance

How has Travelers Companies performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRV has high quality earnings.

Growing Profit Margin: TRV's current net profit margins (11.2%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: TRV's earnings have declined by 0.7% per year over the past 5 years.

Accelerating Growth: TRV's earnings growth over the past year (107.8%) exceeds its 5-year average (-0.7% per year).

Earnings vs Industry: TRV earnings growth over the past year (107.8%) exceeded the Insurance industry 67%.


Return on Equity

High ROE: TRV's Return on Equity (13%) is considered low.


Financial Health

How is Travelers Companies's financial position?


Financial Position Analysis

Short Term Liabilities: TRV's short term assets ($27.8B) do not cover its short term liabilities ($72.9B).

Long Term Liabilities: TRV's short term assets ($27.8B) exceed its long term liabilities ($17.7B).


Debt to Equity History and Analysis

Debt Level: TRV's debt to equity ratio (23.8%) is considered satisfactory.

Reducing Debt: TRV's debt to equity ratio has reduced from 26% to 23.8% over the past 5 years.

Debt Coverage: TRV's debt is well covered by operating cash flow (104.9%).

Interest Coverage: TRV's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet


Dividend

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

2.36%

Current Dividend Yield


Upcoming Dividend Payment

TodayJul 31 2021Ex Dividend DateSep 09 2021Dividend Pay DateSep 30 202121 days from Ex DividendBuy in the next 40 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: TRV's dividend (2.36%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: TRV's dividend (2.36%) is low compared to the top 25% of dividend payers in the US market (3.54%).


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 low payout ratio (22.9%), 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 (27.7% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Alan Schnitzer (55 yo)

5.58yrs

Tenure

US$18,990,270

Compensation

Mr. Alan David Schnitzer serves as Chairman of the Board of Travelers Companies, Inc. since August 1, 2017 and serves as its Chief Executive Officer and Director since December 2015. Mr. Schnitzer joined t...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD18.99M) is above average for companies of similar size in the US market ($USD11.17M).

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


Leadership Team

Experienced Management: TRV's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: TRV's board of directors are considered experienced (7.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TRV insiders have only sold shares 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$37.154b
  • Shares outstanding: 249.49m
  • Website: https://www.travelers.com

Number of Employees


Location

  • The Travelers Companies, Inc.
  • 485 Lexington Avenue
  • New York
  • New York
  • 10017-2630
  • United States

Listings


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 Analysis2021/07/31 05:42
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
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.