Loews Corp (L) stock analysis

P/E above its 5-year median

Loews's P/E of 15.4 is above its own 5-year median of 13.4.

P/E above the industry

Loews's P/E of 15.4 is above the Fire, Marine, and Casualty Insurance median of 10.4.

P/S below the industry

Loews's price-to-sales of 1.21 is below the Fire, Marine, and Casualty Insurance median of 1.28.

P/B below the industry

Loews's price-to-book of 1.25 is below the Fire, Marine, and Casualty Insurance median of 1.62.

Trading above fair value

The share price of $111.51 is above our fair value estimate of $103.58.

Margin of safety under 20%

The price is 7.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 9.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 33.1% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 2.8% over the last twelve months; the Fire, Marine, and Casualty Insurance median is 5.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 8.1% over the last twelve months and averaged 8.3% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.7%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Loews's return on equity of 8.1% is below the Fire, Marine, and Casualty Insurance median of 15.9%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 7.9% over the last twelve months, against a 5-year average of 8.5%.

Net margin below the industry

Loews's net margin of 7.9% is below the Fire, Marine, and Casualty Insurance median of 12.0%.

High debt

Debt is 48.8% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 56.8% five years ago to 48.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 29.2% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

Insurers do not split assets into current and non-current.

Bankruptcy risk (Altman Z)

The Altman model does not apply to insurers.

Pays a dividend

Loews paid dividends worth 0.2% of the share price over the last twelve months.

Yield below Treasuries

The 0.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Loews yields 0.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 3.5% of net income.

Covered by free cash flow

Dividends take 3.1% of free cash flow.