Travelers Companies (TRV) AI Stock Analysis

• Market Cap: $58.09B
• Dividend Yield: 1.72%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.45
• Revenue Growth: 9.60%
• EPS Growth: 36.89%
• Country: US
• Employees: 34,000
• Sector: Financial
• Sector Strength: 80
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.91
• Shares Outstanding: 226,568,790
• 10 Day Avg. Volume: 1,090,296
• 30 Day Avg. Volume: 1,229,387
• PEG Ratio: -0.98
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.72
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 1.43
• Enterprise Value/Ebitda: 1.16
• 1Y Price Target: $286.17
• Price Target Upside: 12.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 70 Outperform
• Price Target: $285.00 ▲(11.62%Upside)

The overall stock score reflects Travelers Companies' strong financial health, including solid profitability and cash generation, tempered by recent technical weakness and challenges from catastrophe losses. The strategic sale of the Canadian insurance business and consistent dividend growth contribute positively, but the stock faces near-term headwinds from market momentum and operational challenges.

Positive Factors

Earnings

Travelers reported operating EPS of $1.91 for the first quarter, materially above the Street’s estimate.

Financial Performance

TRV’s shares traded up reflecting Q1 beat along with lack of noise in results.

Reserves

The analysis shows that TRV's reserves were overstated by about $1,388 million, indicating potential for positive reserve releases.

Negative Factors

Catastrophe Losses

The quarter was significantly impacted by $1.7 billion of pretax CAT losses caused by the California wildfires.

Earnings Outlook

Earnings are likely to decline before returning to more measured growth.

Valuation

Given where shares currently trade, there is essentially no potential upside for the next 12 months, leading to an Underperform recommendation.

Travelers Companies Business Overview & Revenue Model

Company Description

The Travelers Companies, Inc. (TRV) is a leading provider of property and casualty insurance for individuals, businesses, and government entities. Headquartered in New York City, Travelers operates through three main segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The company offers a wide range of insurance products, including auto, home, and business insurance, as well as surety and financial liability products. With a vast network of independent agents and brokers, Travelers delivers tailored insurance solutions across the United States and internationally.

How the Company Makes Money

Travelers Companies generates revenue primarily through the sale of insurance policies and the collection of premiums from policyholders. The Business Insurance segment provides insurance products and services to a wide variety of commercial, industrial, and institutional customers. The Bond & Specialty Insurance segment offers surety, fidelity, management liability, and professional liability coverages, along with other insurance products. The Personal Insurance segment focuses on providing homeowners and automobile insurance to individual consumers. Key revenue streams include premiums earned from underwriting insurance policies and investment income derived from the company's investment portfolio. Travelers also benefits from strategic partnerships with independent agents and brokers who facilitate the distribution of its insurance products, contributing to the company's broad market reach and customer base.

Travelers Companies Financial Statement Overview

Summary

Travelers Companies shows solid financial health with strong revenue growth and profitability, stable leverage, and effective cash generation. The income statement indicates robust revenue and profitability metrics, although the decrease in EBIT margin highlights some operational challenges. The balance sheet and cash flow statement reflect financial stability and efficient cash management.

Income Statement

The income statement reveals a solid performance with improving revenue and profitability metrics. The TTM revenue growth is robust at 13.2% from the previous year. Gross profit and net profit margins stand strong at 100.2% and 9.1% respectively, indicating efficient operations and profitability. However, the decrease in EBIT margin from 13.3% to 8.1% suggests some operational challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.28, showcasing strong financial leverage management. The equity ratio is healthy at 20.7%, indicating a good proportion of equity financing. Return on equity is strong at 15.2%, reflecting efficient management of shareholders' equity to generate profits.

Cash Flow

The cash flow statement displays strong operating cash flow with an operating cash flow to net income ratio of 2.10, signifying efficient cash generation relative to net income. Free cash flow remains stable, although its growth rate is slightly negative. The free cash flow to net income ratio is excellent at 2.10, indicating robust cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.01B	46.42B	41.36B	36.88B	34.82B	31.98B
Gross Profit	47.12B	46.42B	41.36B	36.88B	34.82B	31.98B
EBITDA	14.51B	6.57B	4.47B	4.53B	5.67B	4.37B
Net Income	4.27B	5.00B	2.99B	2.84B	3.66B	2.70B
Balance Sheet
Total Assets	135.98B	133.19B	125.98B	115.72B	120.47B	116.76B
Cash, Cash Equivalents and Short-Term Investments	90.67B	89.13B	83.59B	75.43B	82.41B	80.23B
Total Debt	8.03B	8.03B	8.03B	7.29B	7.29B	6.55B
Total Liabilities	107.79B	105.33B	101.06B	94.16B	91.58B	87.56B
Stockholders Equity	28.19B	27.86B	24.92B	21.56B	28.89B	29.20B
Cash Flow
Free Cash Flow	8.98B	9.07B	7.71B	6.46B	7.27B	6.52B
Operating Cash Flow	8.98B	9.07B	7.71B	6.46B	7.27B	6.52B
Investing Cash Flow	-7.04B	-7.26B	-6.82B	-3.73B	-5.20B	-4.89B
Financing Cash Flow	-1.88B	-1.75B	-1.05B	-2.67B	-2.04B	-1.42B

Travelers Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 255.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRV, the sentiment is Negative. The current price of 255.32 is below the 20-day moving average (MA) of 263.03, below the 50-day MA of 266.58, and above the 200-day MA of 251.82, indicating a neutral trend. The MACD of -2.30 indicates Positive momentum. The RSI at 39.27 is Neutral, neither overbought nor oversold. The STOCH value of 12.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRV.

Travelers Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WRB	82 Outperform	$26.84B	16.41	20.73%	3.35%	11.39%	14.76%
ALL	74 Outperform	$51.52B	13.30	19.88%	2.07%	11.49%	219.86%
CB	73 Outperform	$112.19B	13.48	13.40%	1.39%	9.09%	-7.55%
MKL	73 Outperform	$25.34B	14.72	10.94%	―	-6.46%	-26.71%
TRV	70 Outperform	$58.09B	13.96	16.05%	1.72%	9.60%	36.89%
Sector *	67 Neutral	$16.81B	11.85	9.77%	3.76%	12.07%	-8.35%
PGR	66 Neutral	$147.52B	16.94	34.34%	0.16%	20.74%	51.73%

Travelers Companies Corporate Events

Travelers Companies Sells Canadian Insurance Business

On May 27, 2025, Travelers Companies announced an agreement to sell its Canadian personal insurance business and most of its Canadian commercial insurance business to Definity Financial Corporation for approximately US$2.4 billion. The transaction, expected to close in the first quarter of 2026, will see Travelers retain its Canadian surety business. The company plans to use part of the proceeds for share repurchases, which are anticipated to slightly increase earnings per share over the coming years.

The most recent analyst rating on (TRV) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Travelers Companies stock, see the TRV Stock Forecast page.

Travelers Companies Approves Stock Plan Amendment at Meeting

On May 21, 2025, The Travelers Companies, Inc. held its annual meeting of shareholders, where an amendment to the 2023 Stock Incentive Plan was approved, increasing the shares authorized for issuance by 2,100,000. Additionally, the meeting included the election of directors and the appointment of Russell G. Golden as Chair of the Audit Committee, following the retirement of Mr. Kane. Other proposals, including those related to executive compensation and climate-related pricing, were also voted on, with varying levels of support.

The most recent analyst rating on (TRV) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on Travelers Companies stock, see the TRV Stock Forecast page.