The Travelers Companies Inc

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TRV : NYSE : Financial
$115.31 | %
Today's Range: 115.31 - 116.68
Avg. Daily Volume: 1,432,100
09/23/16 - 4:02 PM ET

Financial Analysis


TRAVELERS COS INC's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.45% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)6785.06710.0
EBITDA ($mil)1180.01372.0
EBIT ($mil)980.01168.0
Net Income ($mil)664.0812.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)4253.04241.0
Total Assets ($mil)102446.0101664.0
Total Debt ($mil)6436.06350.0
Equity ($mil)24714.024121.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin29.9832.79
EBITDA Margin17.3920.44
Operating Margin14.4417.41
Sales Turnover0.260.27
Return on Assets3.073.54
Return on Equity12.7414.93
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.210.21
Interest Expense93.092.0
Interest Coverage10.5412.7


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)288.3311.2
Div / share0.670.61
EPS2.242.53
Book value / share85.7277.51
Institutional Own % n/a n/a
Avg Daily Volume1447228.01479045.0

Valuation


BUY. TRAVELERS COS INC's P/E ratio indicates a significant discount compared to an average of 42.44 for the Insurance industry and a significant discount compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 1.36 indicates a discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 1.57. 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 11.29 Peers 42.44   TRV 8.79 Peers 11.90

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 11.91 Peers 14.88   TRV NM Peers 2.00

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 1.36 Peers 1.57   TRV -4.97 Peers -5.86

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 1.25 Peers 1.41   TRV -0.26 Peers 4.35

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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