The Travelers Companies Inc

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TRV : NYSE : Financial
$121.01 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1453500.0
03/27/17 - 4:01 PM ET

Financial Analysis


TRAVELERS COS INC's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.59% from the same quarter last year.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)7067.06678.0
EBITDA ($mil)1468.01502.0
EBIT ($mil)1266.01304.0
Net Income ($mil)943.0866.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)10849.011375.0
Total Assets ($mil)100245.0100184.0
Total Debt ($mil)6437.06344.0
Equity ($mil)23221.023598.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin32.7435.09
EBITDA Margin20.7722.49
Operating Margin17.9119.53
Sales Turnover0.270.27
Return on Assets3.03.43
Return on Equity12.9714.57
Debt Q4 FY16 Q4 FY15
Current Ratio0.00.0
Debt/Capital0.220.21
Interest Expense90.095.0
Interest Coverage14.0713.73


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)279.6295.9
Div / share0.670.61
EPS3.282.83
Book value / share83.0579.75
Institutional Own % n/a n/a
Avg Daily Volume1445644.01902005.0

Valuation


BUY. TRAVELERS COS INC's P/E ratio indicates a significant discount compared to an average of 23.66 for the Insurance industry and a significant discount compared to the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 1.46 indicates a discount versus the S&P 500 average of 2.93 and a discount versus the industry average of 1.80. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. 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 11.81 Peers 23.66   TRV 8.07 Peers 11.75

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 12.44 Peers 15.01   TRV NM Peers 1.48

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 discount to its peers.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TRV 1.46 Peers 1.80   TRV -5.61 Peers -9.54

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.

 

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

TRV is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TRV 1.23 Peers 1.43   TRV 2.55 Peers 15.12

Discount. 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 discount to 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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