The Travelers Companies Inc

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TRV : NYSE : Financial
$121.64 -0.01 | -0.0082%
Today's Range: 121.4 - 122.12
Avg. Daily Volume: 1437600.0
05/23/17 - 3:59 PM ET

Financial Analysis


TRAVELERS COS INC's gross profit margin for the first 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 2.29% from the same quarter last year.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)6942.06686.0
EBITDA ($mil)1060.01221.0
EBIT ($mil)849.01008.0
Net Income ($mil)617.0691.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)5066.04948.0
Total Assets ($mil)101246.0101680.0
Total Debt ($mil)6438.06344.0
Equity ($mil)23612.024166.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin26.5829.96
EBITDA Margin15.2618.26
Operating Margin12.2315.08
Sales Turnover0.270.26
Return on Assets2.93.24
Return on Equity12.4513.64
Debt Q1 FY17 Q1 FY16
Current Ratio0.00.0
Debt/Capital0.210.21
Interest Expense89.091.0
Interest Coverage9.5411.08


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)279.4292.4
Div / share0.670.61
EPS2.172.3
Book value / share84.5182.65
Institutional Own % n/a n/a
Avg Daily Volume1432237.01563975.0

Valuation


BUY. TRAVELERS COS INC's P/E ratio indicates a significant discount compared to an average of 29.46 for the Insurance industry and a significant discount compared to the S&P 500 average of 25.02. Conducting a second comparison, its price-to-book ratio of 1.43 indicates a significant discount versus the S&P 500 average of 3.00 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 11.92 Peers 29.46   TRV 8.12 Peers 10.60

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 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 12.37 Peers 15.34   TRV NM Peers 1.62

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 1.43 Peers 1.80   TRV -4.61 Peers 19.97

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 1.22 Peers 1.41   TRV 3.28 Peers 11.83

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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