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.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


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


Market Performance


7 Day Return

-0.4%

NYSE:TRV

0.5%

US Insurance

0.9%

US Market


1 Year Return

12.0%

NYSE:TRV

8.8%

US Insurance

0.3%

US Market

TRV outperformed the Insurance industry which returned 8.3% over the past year.

TRV outperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

TRVIndustryMarket
7 Day-0.4%0.5%0.9%
30 Day-1.8%-1.8%-1.9%
90 Day-0.3%2.0%1.6%
1 Year14.7%12.0%11.5%8.8%2.6%0.3%
3 Year35.5%26.5%45.8%34.8%41.0%31.8%
5 Year75.6%56.7%66.3%46.6%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

21%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Travelers Companies's share price is below the future cash flow value, and at a moderate discount (> 20%).

Travelers Companies's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Travelers Companies is good value based on earnings compared to the US Insurance industry average.

Travelers Companies is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Travelers Companies is poor value based on expected growth next year.


Price Based on Value of Assets

Travelers Companies is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

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

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Travelers Companies's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Travelers Companies's earnings are expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).

Travelers Companies's revenue growth is positive but not above the United States of America market average.

Travelers Companies's earnings growth is positive but not above the United States of America market average.

Travelers Companies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Travelers Companies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Travelers Companies performed over the past 5 years?

-10.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Travelers Companies's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Travelers Companies's 1-year earnings growth exceeds its 5-year average (31.7% vs -10.5%)

Travelers Companies's earnings growth has exceeded the US Insurance industry average in the past year (31.7% vs 4.3%).


Return on Equity

Travelers Companies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Travelers Companies used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Travelers Companies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Travelers Companies's financial position?


Financial Position Analysis

Travelers Companies's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Travelers Companies's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Travelers Companies's level of debt (25.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (24.9% vs 25.9% today).

Debt is well covered by operating cash flow (68.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.9x debt.


Next Steps

Dividend

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

2.29%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Travelers Companies's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Travelers Companies's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Alan Schnitzer (53yo)

3.7yrs

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

Alan's remuneration is higher than average for companies of similar size in United States of America.

Alan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.2yrs

Average Tenure

53.5yo

Average Age

The tenure for the Travelers Companies management team is about average.


Board Age and Tenure

8.5yrs

Average Tenure

68.5yo

Average Age

The tenure for the Travelers Companies board of directors is about average.


Insider Trading

Travelers Companies individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$522,62813 Aug 19
Michael Klein
EntityIndividual
Shares3,545.43
Max PriceUS$147.41
SellUS$290,71402 May 19
Douglas Russell
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Corporate Controller
Shares2,040
Max PriceUS$142.51
SellUS$418,74029 Apr 19
Douglas Russell
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Corporate Controller
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
SellUS$210,19915 Nov 18
Andy Bessette
EntityIndividual
Shares1,666
Max PriceUS$126.17

Ownership Breakdown


Management Team

  • Bill Heyman (70yo)

    Vice Chairman

    • Tenure: 15.3yrs
    • Compensation: US$6.62m
  • Alan Schnitzer (53yo)

    Chairman & CEO

    • Tenure: 3.7yrs
    • Compensation: US$14.65m
  • Jay Benet (66yo)

    Vice Chairman

    • Tenure: 0.9yrs
    • Compensation: US$5.90m
  • Douglas Russell (61yo)

    Senior VP & Corporate Controller

    • Tenure: 20.1yrs
  • Mojgan Lefebvre (53yo)

    Executive VP

    • Tenure: 0.3yrs
  • Avrohom Kess (50yo)

    Vice Chairman & Chief Legal Officer

    • Tenure: 2.7yrs
    • Compensation: US$6.01m
  • Greg Toczydlowski (52yo)

    Executive VP & President of Business Insurance

    • Tenure: 10.1yrs
    • Compensation: US$4.86m
  • David Rowland

    Executive VP & Co-Chief Investment Officer

    • Tenure: 0.0yrs
  • Daniel Yin

    Executive VP & Co-Chief Investment Officer

    • Tenure: 0.0yrs
  • Dan Frey (54yo)

    Executive VP & CFO

    • Tenure: 0.9yrs
    • Compensation: US$1.81m

Board Members

  • Laurie Thomsen (62yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$304.94k
  • Don Shepard (72yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: US$329.94k
  • Todd Schermerhorn (58yo)

    Lead Director

    • Tenure: 0.6yrs
    • Compensation: US$329.94k
  • Janet Dolan (69yo)

    Director

    • Tenure: 18.3yrs
    • Compensation: US$324.94k
  • Clarence Otis (63yo)

    Director

    • Tenure: 2.0yrs
    • Compensation: US$304.94k
  • Patricia Higgins (69yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: US$304.94k
  • Pete Ruegger (69yo)

    Director

    • Tenure: 5.5yrs
    • Compensation: US$304.94k
  • Alan Schnitzer (53yo)

    Chairman & CEO

    • Tenure: 3.7yrs
    • Compensation: US$14.65m
  • Alan Beller (69yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: US$304.94k
  • William Kane (68yo)

    Director

    • Tenure: 7.3yrs
    • 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$38.428b
  • Shares outstanding: 260.39m
  • 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
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
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, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:00
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
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.