Travelers Companies, Inc. (TRV) stock analysis

P/E below its 5-year median

Travelers Companies's P/E of 10.5 is below its own 5-year median of 12.6.

P/E above the industry

Travelers Companies's P/E of 10.5 is above the Fire, Marine, and Casualty Insurance median of 10.4.

P/S above the industry

Travelers Companies's price-to-sales of 1.67 is above the Fire, Marine, and Casualty Insurance median of 1.28.

P/B above the industry

Travelers Companies's price-to-book of 2.82 is above the Fire, Marine, and Casualty Insurance median of 1.62.

Trading above fair value

The share price of $399.46 is above our fair value estimate of $347.42.

Margin of safety under 20%

The price is 15.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 9.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 32.6% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 41.8% over the last twelve months, against a 5-year average of 18.4% a year.

Growing slower than the industry

Revenue grew 1.1% over the last twelve months; the Fire, Marine, and Casualty Insurance median is 5.0%.

Guidance unchanged

The latest outlook (full year 2026 expense ratio, Jul 17, 2026) was maintained, so it neither adds nor takes away points.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity over 15%

Return on equity was 27.5% over the last twelve months and averaged 15.3% over five years.

Return on assets over 1%

Return on assets was 5.8%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Travelers Companies's return on equity of 27.5% is above the Fire, Marine, and Casualty Insurance median of 15.9%.

Earnings grew over 5 years

Net income grew 18.4% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 17.0% over the last twelve months, against a 5-year average of 9.8%.

Net margin above the industry

Travelers Companies's net margin of 17.0% is above the Fire, Marine, and Casualty Insurance median of 12.0%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

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

Travelers Companies paid dividends worth 1.2% of the share price over the last twelve months.

Yield below Treasuries

The 1.2% 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; Travelers Companies yields 1.2%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 12.0% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.