The Travelers Companies Inc

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TRV : NYSE : Financial
$122.04 | %
Today's Range: 121.0501 - 122.17
Avg. Daily Volume: 1573000.0
09/22/17 - 4:02 PM ET

Financial Analysis


TRAVELERS COS INC's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.46% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)7184.06785.0
EBITDA ($mil)1080.01180.0
EBIT ($mil)882.0980.0
Net Income ($mil)595.0664.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)5620.04253.0
Total Assets ($mil)102669.0102446.0
Total Debt ($mil)6920.06436.0
Equity ($mil)23858.024714.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin26.8229.98
EBITDA Margin15.0317.39
Operating Margin12.2814.44
Sales Turnover0.270.26
Return on Assets2.793.07
Return on Equity12.0312.74
Debt Q2 FY17 Q2 FY16
Current Ratio0.00.0
Debt/Capital0.220.21
Interest Expense92.093.0
Interest Coverage9.5910.54


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)275.9288.3
Div / share0.720.67
EPS2.112.24
Book value / share86.4785.72
Institutional Own % n/a n/a
Avg Daily Volume1562322.01379362.0

Valuation


BUY. TRAVELERS COS INC's P/E ratio indicates a significant discount compared to an average of 49.81 for the Insurance industry and a significant discount compared to the S&P 500 average of 24.97. Conducting a second comparison, its price-to-book ratio of 1.40 indicates a significant discount versus the S&P 500 average of 3.11 and a discount versus the industry average of 1.87. 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 12.06 Peers 49.81   TRV 7.41 Peers 12.52

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 12.51 Peers 16.80   TRV NM Peers 1.76

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

TRV is trading at a valuation on par with 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 1.40 Peers 1.87   TRV -3.20 Peers 207.29

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 significant 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 1.18 Peers 1.50   TRV 4.47 Peers 11.43

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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