Fact based stock research
Travelers (NYSE:TRV)

US89417E1091

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Travelers stock research in summary

travelers.com

ANALYSIS: With an Obermatt Combined Rank of 81 (better than 81% compared with investment alternatives), Travelers (Property & Casualty Insurance, USA) shares have much better financial characteristics than comparable stocks. Shares of Travelers are low in value (priced high) with a consolidated Value Rank of 45 (worse than 55% of alternatives) and show below-average growth (Growth Rank of 39) but are safely financed (Safety Rank of 70), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 81, is a strong buy recommendation based on Travelers's financial characteristics. As the company Travelers's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 45) and low growth (Obermatt Growth Rank of 39), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 70) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	USA
Industry	Property & Casualty Insurance
Index	Dow Jones, Diversity USA, D.J. US Insurance, S&P 500
Size class	XX-Large

This stock has achievements: Top 10 Stock.

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Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Travelers

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	47	51	52	n/a
GROWTH
GROWTH	70	37	29	n/a
SAFETY
SAFETY	21	70	70	n/a
SENTIMENT
SENTIMENT	n/a	83	46	^new
360° VIEW
360° VIEW	n/a	65	78	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better Travelers is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	47	51	52	n/a
GROWTH
GROWTH	70	37	29	n/a
SAFETY
SAFETY	21	70	70	n/a
COMBINED
COMBINED	45	81	81	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of Travelers the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 45 (worse than 55% compared with alternatives), Travelers shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for Travelers. Price-to-Sales (P/S) is 55, which means that the stock price compared with what market professionals expect for future sales is lower than for 55% of comparable companies, indicating a good value concerning Travelers's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 61% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 48 (dividends are expected to be higher than for 48% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 61% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Travelers to 39. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 45, is a hold recommendation based on Travelers's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	36	50	58	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	59	45	64	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	39	52	44	n/a
DIVIDEND YIELD
DIVIDEND YIELD	52	51	54	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	47	51	52	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of Travelers; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 39 (better than 39% compared with alternatives), Travelers shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Travelers. While Sales Growth ranks at 72, professionals currently expect the company to grow more than 72% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 21, which means that, currently, professionals expect the company to grow its profits less than 79% of its competitors, and Capital Growth has a low rank of 39. Historic stock returns were also below average with a current Stock Returns rank of 39 which means that the stock returns have recently been below 61% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 39, is a hold recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	47	51	73	n/a
PROFIT GROWTH
PROFIT GROWTH	16	46	22	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	51	39	n/a
STOCK RETURNS
STOCK RETURNS	71	43	31	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	70	37	29	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Travelers.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company Travelers has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Travelers is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Travelers. Leverage is at a rank of 61, meaning the company has a below-average debt-to-equity ratio. It has less debt than 61% of its competitors. Liquidity is also good at a rank of 80, meaning the company generates more profit to service its debt than 80% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 0, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 100% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), Travelers has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Travelers. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Travelers and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	37	64	61	n/a
REFINANCING
REFINANCING	10	n/a	n/a	n/a
LIQUIDITY
LIQUIDITY	53	75	80	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	21	70	70	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of Travelers and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	26	34	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	52	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	95	78	^new
MARKET PULSE
MARKET PULSE	n/a	76	49	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	83	46	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Travelers.
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