Travelers Companies (TRV) AI Stock Analysis

• Market Cap: $59.76B
• Dividend Yield: 1.59%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.48
• Revenue Growth: 6.75%
• EPS Growth: 30.83%
• Country: US
• Employees: 34,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 8.14
• Shares Outstanding: 223,063,420
• 10 Day Avg. Volume: 1,436,074
• 30 Day Avg. Volume: 1,140,218
• PEG Ratio: 0.16
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 6.05
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.50
• Enterprise Value/Gross Profit: 4.67
• Enterprise Value/Ebitda: 7.24
• 1Y Price Target: $297.75
• Price Target Upside: 9.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 80 Outperform
• Price Target: $312.00 ▲(15.12% Upside)

Travelers Companies' strong financial performance and positive earnings call are the most significant factors driving the high score. The company's stable valuation and neutral technical indicators also contribute positively, although they are less impactful.

Positive Factors

Revenue Growth

The growth in net written premiums, particularly in business insurance, signifies strong demand and effective market penetration, supporting long-term revenue expansion.

Strong Underwriting Income

Doubling of underwriting income reflects effective risk management and pricing strategies, enhancing profitability and competitive positioning in the insurance market.

Investment Income Growth

The increase in investment income underscores the company's ability to generate returns from its investment portfolio, contributing to overall financial stability and growth.

Negative Factors

Decline in Property Line Premium

Declining premiums in the property line could indicate challenges in maintaining market share or pricing power, potentially impacting future revenue streams.

Asbestos Charge Impact

The significant asbestos charge could strain financial resources and impact profitability, highlighting potential liabilities that may affect long-term financial health.

Challenges in New Business

Lower new business volumes may suggest difficulties in acquiring new clients or expanding market presence, which could hinder growth prospects.

Travelers Companies Business Overview & Revenue Model

Company Description

The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United states and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business Insurance segment offers workers' compensation, commercial automobile and property, general liability, commercial multi-peril, employers' liability, public and product liability, professional indemnity, marine, aviation, onshore and offshore energy, construction, terrorism, personal accident, and kidnap and ransom insurance products. This segment operates through select accounts, which serve small businesses; commercial accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and other that serve large and mid-sized customers, commercial trucking industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, and program managers. The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty coverages and related risk management services through independent agencies and brokers. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals through independent agencies and brokers. The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York.

How the Company Makes Money

Travelers Companies generates revenue primarily through the collection of premiums from its insurance policies. The company earns income by underwriting insurance policies, which involves assessing risk and determining the premiums charged to policyholders. Key revenue streams include commercial insurance premiums from businesses, personal insurance premiums from individuals, and investment income from managing its insurance reserves. Significant partnerships with agents and brokers enhance distribution and market reach, while a disciplined approach to underwriting and risk management helps maintain profitability. Additionally, Travelers invests in financial markets, which contributes to its earnings through investment income.

Travelers Companies Financial Statement Overview

Summary

Travelers Companies exhibits strong financial health with consistent revenue growth, solid profitability margins, and a robust balance sheet. Efficient cash management is evident, supporting strategic flexibility. The low debt levels reduce financial risk, while high equity returns indicate efficient asset utilization. Overall, the company is well-positioned for continued stability and growth in the competitive insurance sector.

Income Statement

The income statement shows strong revenue growth with a TTM increase of 11.4% from the previous year. The Gross Profit Margin remains consistent at 100%, indicative of the company's solid revenue base. The Net Profit Margin improved to 11%, reflecting better operational efficiency. The EBIT and EBITDA margins also demonstrate steady financial health with EBIT at 10.3% and EBITDA at 15.3% in TTM, ensuring robust profitability.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.27, suggesting prudent leverage levels. The Return on Equity (ROE) increased to 17.8% in TTM, highlighting efficient equity usage. The Equity Ratio stands at 21.3%, reflecting a strong equity base, albeit slightly lower than ideal for full stability against liabilities.

Cash Flow

Cash flow analysis reveals strong cash generation capabilities with a 6.2% growth in free cash flow in TTM. The Operating Cash Flow to Net Income ratio of 1.84 indicates excellent cash conversion efficiency, and the Free Cash Flow to Net Income ratio of 1.84 underscores the robust liquidity position despite heavy investing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.41B	46.43B	41.37B	36.90B	34.82B	31.98B
Gross Profit	15.60B	12.40B	8.93B	8.53B	9.47B	8.09B
EBITDA	10.06B	7.29B	4.47B	4.53B	5.67B	4.37B
Net Income	5.87B	5.00B	2.99B	2.84B	3.66B	2.70B
Balance Sheet
Total Assets	143.68B	133.19B	125.98B	115.72B	120.47B	116.76B
Cash, Cash Equivalents and Short-Term Investments	91.84B	89.13B	83.59B	75.43B	82.41B	80.23B
Total Debt	9.27B	8.03B	8.03B	7.29B	7.29B	6.55B
Total Liabilities	112.07B	105.33B	101.06B	94.16B	91.58B	87.56B
Stockholders Equity	31.61B	27.86B	24.92B	21.56B	28.89B	29.20B
Cash Flow
Free Cash Flow	9.98B	9.07B	7.71B	6.46B	7.27B	6.52B
Operating Cash Flow	9.98B	9.07B	7.71B	6.46B	7.27B	6.52B
Investing Cash Flow	-8.77B	-7.26B	-6.82B	-3.73B	-5.20B	-4.89B
Financing Cash Flow	-1.26B	-1.75B	-1.05B	-2.67B	-2.04B	-1.42B

Travelers Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 271.01
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRV, the sentiment is Positive. The current price of 271.01 is below the 20-day moving average (MA) of 271.90, below the 50-day MA of 273.75, and above the 200-day MA of 261.01, indicating a neutral trend. The MACD of -1.61 indicates Negative momentum. The RSI at 49.45 is Neutral, neither overbought nor oversold. The STOCH value of 68.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRV.

Travelers Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRV	―	$59.76B	10.54	19.81%	1.59%	6.75%	30.83%
CB	―	$109.43B	11.61	14.06%	1.35%	6.68%	-1.78%
WRB	―	$27.13B	14.99	20.92%	1.87%	11.07%	22.01%
MKL	―	$24.44B	12.13	11.86%	―	-6.96%	-26.28%
ALL	―	$50.56B	8.93	27.33%	2.04%	9.81%	94.71%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PRA	―	$1.23B	25.29	4.05%	―	-2.05%	―

Travelers Companies Corporate Events

Travelers Companies Inc. Reports Strong Q3 2025 Earnings

The Travelers Companies, Inc. is a leading provider of property casualty insurance for auto, home, and business sectors, operating primarily in the United States. In its latest earnings report, Travelers Companies Inc. announced a significant increase in net income and core income for the third quarter of 2025, driven by strong underwriting results and higher investment income. The company reported a net income of $1.888 billion, a 50% increase from the previous year, and a core income of $1.867 billion, up 53%. The combined ratio improved to 87.3%, reflecting lower catastrophe losses and improved underwriting performance. Travelers also saw a 15% increase in net investment income and returned $878 million to shareholders through share repurchases and dividends. Looking ahead, Travelers’ management expressed confidence in the company’s strong momentum and competitive advantages, anticipating continued growth and profitability in the future.

Travelers Companies Inc. Reports Strong Earnings Call

The recent earnings call for Travelers Companies Inc. showcased a strong financial performance, with record earnings and robust shareholder returns. Despite challenges in certain lines such as property and new business in Bond and Specialty, the overall results and strategic positioning indicate a positive outlook for the company.