NYSE:TRV

Stock Analysis Report

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.

Rewards

Trading at 33.8% below its fair value

Earnings are forecast to grow 3.52% per year

Pays a high and reliable dividend of 2.38%

Risk Analysis

No risks detected for TRV from our risk checks.


Snowflake Analysis

Established dividend payer and good value.


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

1.3%

TRV

1.0%

US Insurance

1.8%

US Market


1 Year Return

7.0%

TRV

19.2%

US Insurance

20.1%

US Market

Return vs Industry: TRV underperformed the US Insurance industry which returned 19.2% over the past year.

Return vs Market: TRV underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

TRVIndustryMarket
7 Day1.3%1.0%1.8%
30 Day-2.1%3.6%1.4%
90 Day2.6%6.9%8.8%
1 Year9.5%7.0%22.1%19.2%22.7%20.1%
3 Year21.0%13.0%37.3%26.8%50.1%40.4%
5 Year43.3%27.8%73.4%52.7%72.9%53.9%

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?

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TRV ($137.76) is trading below our estimate of fair value ($208.2)

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 (13.8x) compared to the Insurance industry average (14x).

PE vs Market: TRV is good value based on its PE Ratio (13.8x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: TRV is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: TRV is overvalued based on its PB Ratio (1.4x) compared to the US Insurance industry average (1.1x).


Next Steps

Future Growth

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

3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRV's forecast earnings growth (3.5% per year) is above the savings rate (1.7%).

Earnings vs Market: TRV's earnings (3.5% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: TRV's revenue (0.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TRV's revenue (0.3% 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 (10.7%).


Next Steps

Past Performance

How has Travelers Companies performed over the past 5 years?

-9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRV has high quality earnings.

Growing Profit Margin: TRV's current net profit margins (8.2%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: TRV's earnings have declined by -9.8% per year over the past 5 years.

Accelerating Growth: TRV's earnings growth over the past year (4%) exceeds its 5-year average (-9.8% per year).

Earnings vs Industry: TRV earnings growth over the past year (4%) underperformed the Insurance industry 19.8%.


Return on Equity

High ROE: TRV's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Travelers Companies'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: TRV has a low level of unsold assets or inventory.

Debt Coverage by Assets: TRV's debt is covered by short term assets (assets are 4.3x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

2.38%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Travelers Companies before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years2.6%

Current dividend yield vs market & industry

Notable Dividend: TRV's dividend (2.38%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TRV's dividend (2.38%) is low compared to the top 25% of dividend payers in the US market (3.68%).


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 (32.3%), 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 (32.6% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Alan Schnitzer (53yo)

4.2yrs

Tenure

US$14,648,213

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 ($USD14.65M) is above average for companies of similar size in the US market ($USD10.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alan Schnitzer
Chairman & CEO4.2yrsUS$14.65m0.059% $20.6m
Daniel Frey
Executive VP & CFO1.4yrsUS$1.81m0.00031% $108.9k
Avrohom Kess
Vice Chairman & Chief Legal Officer3.2yrsUS$6.01m0.0048% $1.7m
William Heyman
Vice Chairman15.8yrsUS$6.62m0.095% $33.5m
Jay Benet
Vice Chairman1.4yrsUS$5.90m0.040% $14.2m
Gregory Toczydlowski
Executive VP & President of Business Insurance10.6yrsUS$4.86m0.0053% $1.9m
Wendy Skjerven
VP, Corporate Secretary & Group General Counsel0yrsno datano data
Mojgan Lefebvre
Executive VP0.8yrsno datano data
David Rowland
Executive VP & Co-Chief Investment Officer0.5yrsno datano data
Daniel Yin
Executive VP & Co-Chief Investment Officer0.5yrsno datano data

1.4yrs

Average Tenure

53yo

Average Age

Experienced Management: TRV's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Alan Schnitzer
Chairman & CEO4.2yrsUS$14.65m0.059% $20.6m
Laurie Thomsen
Independent Director15.8yrsUS$304.94k0.00097% $340.8k
Donald Shepard
Independent Director10.2yrsUS$329.94k0.016% $5.5m
Todd Schermerhorn
Lead Director1.1yrsUS$329.94kno data
Janet Dolan
Independent Director18.8yrsUS$324.94kno data
Clarence Otis
Independent Director2.5yrsUS$304.94k0.0030% $1.0m
Patricia Higgins
Independent Director12.8yrsUS$304.94k0.000040% $14.1k
Philip Ruegger
Independent Director6yrsUS$304.94k0.0081% $2.9m
Alan Beller
Independent Director12.8yrsUS$304.94kno data
William Kane
Independent Director7.8yrsUS$329.94k0.00030% $105.4k

9.0yrs

Average Tenure

68.5yo

Average Age

Experienced Board: TRV's board of directors are considered experienced (9 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

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$35.133b
  • Shares outstanding: 255.03m
  • 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 REP 0.33 SHSARARSFeb 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, and individuals in the United states and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business Insurance segment offers workers' compensation, commercial automobile and property, general liability, commercial multi-peril, employers' liability, public and product liability, professional indemnity, marine, aviation, onshore and offshore energy, construction, terrorism, personal accident, and kidnap and ransom insurance products. This segment operates through select accounts, which serve small businesses; commercial accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and other that serve large and mid-sized customers, commercial transportation industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, program managers, and specialized retail agents. The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty insurance products through independent agencies and brokers. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals through independent agencies and brokers. The Travelers Companies, Inc. was founded in 1853 and is based 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 Analysis2020/02/16 01:41
End of Day Share Price2020/02/14 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.