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 36.5% below its fair value

Earnings are forecast to grow 6.09% per year

Pays a high and reliable dividend of 2.4%

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

3.3%

TRV

2.1%

US Insurance

1.7%

US Market


1 Year Return

13.5%

TRV

19.7%

US Insurance

23.6%

US Market

Return vs Industry: TRV underperformed the US Insurance industry which returned 20.4% over the past year.

Return vs Market: TRV underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

TRVIndustryMarket
7 Day3.3%2.1%1.7%
30 Day3.2%1.6%3.5%
90 Day8.1%4.8%11.7%
1 Year16.1%13.5%22.8%19.7%26.2%23.6%
3 Year27.7%19.2%37.5%26.8%53.2%43.3%
5 Year47.4%31.4%74.8%53.7%75.5%56.1%

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?

34.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TRV ($136.65) is trading below our estimate of fair value ($215.34)

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 (15.2x) compared to the Insurance industry average (16.4x).

PE vs Market: TRV is good value based on its PE Ratio (15.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: TRV is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: TRV is overvalued based on its PB Ratio (1.4x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is Travelers Companies forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRV's forecast earnings growth (6.1% per year) is above the savings rate (1.7%).

Earnings vs Market: TRV's earnings (6.1% 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 (4.4% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: TRV's revenue (4.4% 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 (10.9%).


Next Steps

Past Performance

How has Travelers Companies performed over the past 5 years?

-10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRV has high quality earnings.

Growing Profit Margin: TRV's current net profit margins (7.5%) are lower than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: TRV's earnings have declined by -10.6% 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 (-3.4%) over the past year, making it difficult to compare to the Insurance industry average (-11.3%).


Return on Equity

High ROE: TRV's Return on Equity (9.3%) 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 4.1x 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?

2.33%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: TRV's dividend (2.4%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: TRV's dividend (2.4%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 (35.4%), 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 (31.2% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Alan Schnitzer (53yo)

4.1yrs

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 ($USD14.65M) is above average for companies of similar size in the US market ($USD10.76M).

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


Management Age and Tenure

1.3yrs

Average Tenure

53yo

Average Age

Experienced Management: TRV's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

8.9yrs

Average Tenure

68.5yo

Average Age

Experienced Board: TRV's board of directors are considered experienced (8.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$103,24319 Aug 19
Philip Ruegger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares700
Max PriceUS$147.49
SellUS$522,62813 Aug 19
Michael Klein
EntityIndividual
Shares3,545.43
Max PriceUS$147.41
SellUS$290,71402 May 19
Douglas Russell
EntityIndividual
Shares2,040
Max PriceUS$142.51
SellUS$418,74029 Apr 19
Douglas Russell
EntityIndividual
Shares2,991
Max PriceUS$140.00
SellUS$589,95027 Feb 19
Gregory Toczydlowski
EntityIndividual
Role
Senior Key Executive
Executive VP & President of Business Insurance
Shares4,450
Max PriceUS$132.57
SellUS$636,62125 Feb 19
Michael Klein
EntityIndividual
Shares4,850
Max PriceUS$131.26
SellUS$1,062,57925 Feb 19
William Heyman
EntityIndividual
Role
Senior Key Executive
Vice Chairman
Shares8,138
Max PriceUS$130.57
SellUS$1,044,86929 Jan 19
William Heyman
EntityIndividual
Role
Senior Key Executive
Vice Chairman
Shares8,323
Max PriceUS$125.54

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bill Heyman (70yo)

    Vice Chairman

    • Tenure: 15.8yrs
    • Compensation: US$6.62m
  • Alan Schnitzer (53yo)

    Chairman & CEO

    • Tenure: 4.1yrs
    • Compensation: US$14.65m
  • Jay Benet (66yo)

    Vice Chairman

    • Tenure: 1.3yrs
    • Compensation: US$5.90m
  • Mojgan Lefebvre (53yo)

    Executive VP

    • Tenure: 0.8yrs
  • Avrohom Kess (50yo)

    Vice Chairman & Chief Legal Officer

    • Tenure: 3.1yrs
    • Compensation: US$6.01m
  • Greg Toczydlowski (52yo)

    Executive VP & President of Business Insurance

    • Tenure: 10.5yrs
    • Compensation: US$4.86m
  • David Rowland

    Executive VP & Co-Chief Investment Officer

    • Tenure: 0.4yrs
  • Dan Yin

    Executive VP & Co-Chief Investment Officer

    • Tenure: 0.4yrs
  • Wendy Skjerven

    VP, Corporate Secretary & Group General Counsel

    • Dan Frey (54yo)

      Executive VP & CFO

      • Tenure: 1.3yrs
      • Compensation: US$1.81m

    Board Members

    • Laurie Thomsen (62yo)

      Independent Director

      • Tenure: 15.8yrs
      • Compensation: US$304.94k
    • Don Shepard (72yo)

      Independent Director

      • Tenure: 10.1yrs
      • Compensation: US$329.94k
    • Todd Schermerhorn (58yo)

      Lead Director

      • Tenure: 1yrs
      • Compensation: US$329.94k
    • Janet Dolan (69yo)

      Independent Director

      • Tenure: 18.7yrs
      • Compensation: US$324.94k
    • Clarence Otis (63yo)

      Independent Director

      • Tenure: 2.4yrs
      • Compensation: US$304.94k
    • Patricia Higgins (69yo)

      Independent Director

      • Tenure: 12.7yrs
      • Compensation: US$304.94k
    • Pete Ruegger (69yo)

      Independent Director

      • Tenure: 5.9yrs
      • Compensation: US$304.94k
    • Alan Schnitzer (53yo)

      Chairman & CEO

      • Tenure: 4.1yrs
      • Compensation: US$14.65m
    • Alan Beller (69yo)

      Independent Director

      • Tenure: 12.7yrs
      • Compensation: US$304.94k
    • William Kane (68yo)

      Independent Director

      • Tenure: 7.7yrs
      • Compensation: US$329.94k

    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$36.324b
    • Shares outstanding: 258.11m
    • 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. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. The company distributes its products primarily 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 Analysis2020/01/20 00:04
    End of Day Share Price2020/01/17 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.