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Travelers Companies Inc
TRV : NYSE : Financial
$106.70 | %
Today's Range: 106.69 - 107.29
Avg. Daily Volume: 2,259,300
12/26/14 - 4:02 PM ET

Financial Analysis


TRAVELERS COS INC's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.05% from the same quarter last year.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)6886.06432.0
EBITDA ($mil)1562.01455.0
EBIT ($mil)1351.01248.0
Net Income ($mil)919.0864.0


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)5400.05674.0
Total Assets ($mil)104522.0102685.0
Total Debt ($mil)6348.06346.0
Equity ($mil)25321.024811.0


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin34.5933.92
EBITDA Margin22.6822.62
Operating Margin19.6219.4
Sales Turnover0.260.25
Return on Assets3.482.91
Return on Equity14.3812.04
Debt Q3 FY14 Q3 FY13
Current Ratio0.00.0
Debt/Capital0.20.2
Interest Expense93.091.0
Interest Coverage14.5313.71


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)331.4364.1
Div / share0.550.5
EPS2.692.3
Book value / share76.4168.14
Institutional Own % n/a n/a
Avg Daily Volume2272671.01783999.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 14.76 for the Insurance industry and a discount compared to the S&P 500 average of 19.99. For additional comparison, its price-to-book ratio of 1.39 indicates a discount versus the S&P 500 average of 2.76 and a discount versus the industry average of 1.55. The current price-to-sales ratio is well below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, TRAVELERS COS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TRV 10.30 Peers 14.76   TRV 8.53 Peers 14.49

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

TRV is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TRV is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TRV 11.39 Peers 15.59   TRV 6.28 Peers 1.56

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

TRV is trading at a significant discount to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

TRV trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TRV 1.39 Peers 1.55   TRV 31.58 Peers 90.71

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TRV is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, TRV is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TRV 1.29 Peers 1.23   TRV 5.01 Peers 13.02

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TRV is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

TRV significantly trails its peers on the basis of sales growth

 

 

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