Loews (L) AI Stock Analysis

• Market Cap: $21.41B
• Dividend Yield: 0.23%
• Average Volume (3M): 738.07K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.39
• Revenue Growth: 6.06%
• EPS Growth: -8.53%
• Country: US
• Employees: 13,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 2.61
• Shares Outstanding: 206,659,560
• 10 Day Avg. Volume: 591,468
• 30 Day Avg. Volume: 738,070
• PEG Ratio: 6.93
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 7.80
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 3.94
• Enterprise Value/Ebitda: 13.21
• 1Y Price Target: $116.62
• Price Target Upside: 12.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): $21.90B

• Rating: 76 Outperform
• Price Target: $116.00 ▲(11.97% Upside)

Loews' strong financial performance, characterized by consistent revenue growth and robust cash flow, is the primary driver of its stock score. Technical indicators suggest a positive trend, though caution is advised due to potential overbought conditions. The valuation is fair, but the low dividend yield may not appeal to all investors. Overall, Loews is a solid performer in its industry, with financial stability being its key strength.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Loews' ability to expand its market presence and maintain demand across its diversified segments, supporting long-term business stability.

Cash Generation

Strong cash generation enhances Loews' financial flexibility, allowing for reinvestment in growth opportunities and providing a buffer against economic downturns.

Leadership Change

The appointment of Dino Robusto, with extensive experience at CNA Financial, could strengthen strategic decision-making and leadership at Loews, potentially driving long-term growth.

Negative Factors

Profit Margin Pressure

A decrease in net profit margin suggests potential challenges in maintaining cost efficiency, which could impact profitability if not addressed.

Investment Income Decline

A decline in investment income may limit Loews' ability to leverage its trading portfolio for additional revenue, affecting overall financial performance.

Debt Management

Rising debt levels, if not managed carefully, could strain Loews' cash flow and limit its financial flexibility, impacting long-term stability.

Loews Business Overview & Revenue Model

Company Description

Loews Corporation provides commercial property and casualty insurance in the United States and internationally. The company offers specialty insurance products, such as management and professional liability, and other coverage products; surety and fidelity bonds; property insurance products that include property, marine and boiler, and machinery coverages; and casualty insurance products, such as workers' compensation, general and product liability, and commercial auto and umbrella coverages. It also provides loss-sensitive insurance programs; and warranty, risk management, information, and claims administration services. The company markets its insurance products and services through independent agents, brokers, and managing general underwriters. In addition, the company is involved in the transportation and storage of natural gas and natural gas liquids(NGLs), and hydrocarbons through natural gas pipelines covering approximately 13,615 miles of interconnected pipelines; 450 miles of NGL pipelines in Louisiana and Texas; 14 underground storage fields with an aggregate gas capacity of approximately 213 billion cubic feet of natural gas; and eleven salt dome caverns and related brine infrastructure for providing brine supply services. Further, the company operates a chain of 26 hotels; and develops, manufactures, and markets a range of extrusion blow-molded and injection molded plastic containers for customers in the pharmaceutical, dairy, household chemicals, food/nutraceuticals, industrial/specialty chemicals, and water and beverage/juice segments, as well as manufactures commodity and differentiated plastic resins from recycled plastic materials. Loews Corporation was incorporated in 1969 and is headquartered in New York, New York.

How the Company Makes Money

Loews Corporation generates revenue through several key streams. Primarily, it earns income from its insurance operations, where CNA Financial provides various insurance products, including property, casualty, and specialty insurance. This sector contributes significantly to the company's earnings through premiums collected from policyholders. Additionally, Loews Hotels generates revenue from hotel room bookings, food and beverage sales, and event hosting services. The energy sector, represented by Boardwalk Pipelines, earns revenue through the transportation and storage of natural gas, charging fees for services rendered. Furthermore, Diamond Offshore Drilling contributes to revenue through contracts and day rates associated with offshore drilling services. Loews also benefits from strategic partnerships and investments that enhance its operational capabilities and financial performance.

Loews Financial Statement Overview

Summary

Loews exhibits strong financial health with consistent revenue growth and solid profitability margins. The balance sheet reflects a stable leverage position, while cash flow metrics indicate robust cash generation. The company is well-positioned in its industry, but careful management of debt levels will be crucial to maintain financial stability.

Income Statement

Loews has demonstrated consistent revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 1.53%. The gross profit margin improved significantly to 58.21% in the TTM, indicating strong cost management. However, the net profit margin slightly decreased to 8.04% from the previous year, suggesting some pressure on profitability. EBIT and EBITDA margins are stable, reflecting efficient operations.

Balance Sheet

The company's debt-to-equity ratio stands at 0.52, indicating a balanced leverage position. Return on equity is stable at 8.29%, showcasing effective use of equity to generate profits. The equity ratio is healthy, suggesting a solid capital structure. However, the slight increase in debt levels over the years could pose a risk if not managed carefully.

Cash Flow

Loews has shown a robust free cash flow growth of 7.29% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.71, reflecting efficient cash conversion. The free cash flow to net income ratio of 0.87 suggests that the company is generating ample cash relative to its net income, supporting its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.98B	17.24B	15.68B	14.05B	13.73B	13.67B
Gross Profit	7.93B	7.70B	6.97B	5.91B	5.91B	6.09B
EBITDA	2.36B	2.90B	2.91B	2.00B	3.10B	-215.00M
Net Income	1.45B	1.41B	1.43B	822.00M	1.56B	-931.00M
Balance Sheet
Total Assets	85.94B	81.94B	79.20B	75.57B	81.63B	80.24B
Cash, Cash Equivalents and Short-Term Investments	7.22B	6.90B	5.89B	43.01B	49.85B	49.76B
Total Debt	9.44B	8.94B	9.00B	9.02B	9.08B	10.11B
Total Liabilities	66.72B	64.01B	62.67B	60.37B	62.45B	61.05B
Stockholders Equity	18.29B	17.07B	15.70B	14.35B	17.85B	17.86B
Cash Flow
Free Cash Flow	3.29B	2.39B	3.22B	2.65B	2.14B	1.03B
Operating Cash Flow	3.79B	3.02B	3.91B	3.31B	2.62B	1.75B
Investing Cash Flow	-2.18B	-1.98B	-2.75B	-2.35B	-1.19B	-1.41B
Financing Cash Flow	-1.41B	-898.00M	-1.30B	-1.04B	-1.29B	-198.00M

Loews Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 103.60
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For L, the sentiment is Neutral. The current price of 103.6 is below the 20-day moving average (MA) of 105.57, below the 50-day MA of 104.78, and above the 200-day MA of 95.58, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 43.02 is Neutral, neither overbought nor oversold. The STOCH value of 22.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for L.

Loews Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKL	82 Outperform	$26.45B	13.13	11.86%	―	-6.96%	-26.28%
CNA	79 Outperform	$12.50B	12.62	9.03%	8.03%	5.41%	-23.52%
CINF	76 Outperform	$25.54B	12.18	14.53%	2.10%	-0.63%	-30.68%
L	76 Outperform	$21.41B	15.03	8.15%	0.23%	6.06%	-8.53%
WRB	73 Outperform	$26.29B	14.53	20.92%	1.88%	11.08%	22.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AFG	67 Neutral	$11.00B	13.83	16.91%	6.71%	―	-10.75%