Travelers Companies (TRV) AI Stock Analysis

• Market Cap: $60.07B
• Dividend Yield: 1.66%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.46
• Revenue Growth: 9.60%
• EPS Growth: 36.89%
• Country: US
• Employees: 34,000
• Sector: Financial
• Sector Strength: 75
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.91
• Shares Outstanding: 226,568,790
• 10 Day Avg. Volume: 1,103,721
• 30 Day Avg. Volume: 1,082,240
• PEG Ratio: 2.25
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.84
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 0.88
• Enterprise Value/Ebitda: 0.71
• 1Y Price Target: $283.07
• Price Target Upside: 6.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 75 Outperform
• Price Target: $308.00 ▲(16.27%Upside)

Travelers Companies demonstrates strong financial health and a positive technical outlook, leading to a solid overall score. The company's strategic moves, such as the sale of its Canadian insurance business, and strong shareholder returns contribute positively. However, operational challenges and catastrophe losses present risks that temper the overall score.

Positive Factors

Earnings

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

Investment Income

The target price for Travelers Companies Inc has been raised due to higher investment income and improving profit margins.

Reserve Releases

Significant reserve releases in workers' compensation and personal lines contribute positively to TRV's financial position.

Negative Factors

Catastrophe Losses

Higher catastrophe losses are expected to partially offset the benefits of higher investment income and improving profit margins.

General Liability Deficiencies

General liability deficiencies, especially within Bond & Specialty, that partly offset the positive reserve developments.

Stock Upside

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., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United states and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business Insurance segment offers workers' compensation, commercial automobile and property, general liability, commercial multi-peril, employers' liability, public and product liability, professional indemnity, marine, aviation, onshore and offshore energy, construction, terrorism, personal accident, and kidnap and ransom insurance products. This segment operates through select accounts, which serve small businesses; commercial accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and other that serve large and mid-sized customers, commercial trucking industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, and program managers. The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty coverages and related risk management services through independent agencies and brokers. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals through independent agencies and brokers. The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York.

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
	EBIT
3.82B	6.18B	36.19B	3.71B	4.10B	2.96B
	EBITDA
14.51B	6.57B	4.47B	4.53B	5.67B	4.37B
	Net Income Common Stockholders
4.27B	5.00B	2.99B	2.84B	3.66B	2.70B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
73.57B	89.13B	83.59B	75.43B	82.41B	80.23B
	Total Assets
110.12B	133.19B	125.98B	115.72B	120.47B	116.76B
	Total Debt
7.16B	8.03B	8.03B	7.29B	7.29B	6.55B
	Net Debt
6.66B	7.33B	7.38B	6.49B	6.53B	5.83B
	Total Liabilities
84.18B	105.33B	101.06B	94.16B	91.58B	87.56B
	Stockholders Equity
25.94B	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: Positive
• Last Price: 264.90
• 50DMA: Positive
• 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 TRV, the sentiment is Positive. The current price of 264.9 is below the 20-day moving average (MA) of 269.16, above the 50-day MA of 263.53, and above the 200-day MA of 249.84, indicating a neutral trend. The MACD of -0.51 indicates Positive momentum. The RSI at 46.72 is Neutral, neither overbought nor oversold. The STOCH value of 35.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$27.74B	16.95	20.73%	0.44%	11.39%	14.76%
TRV	75 Outperform	$60.07B	14.44	16.05%	1.66%	9.60%	36.89%
CB	73 Outperform	$114.78B	13.79	13.40%	1.35%	9.09%	-7.55%
MKL	73 Outperform	$24.80B	14.31	10.94%	―	-6.46%	-26.71%
ALL	73 Outperform	$52.48B	13.54	19.88%	2.02%	11.49%	219.86%
PGR	66 Neutral	$156.19B	17.94	34.34%	0.15%	20.74%	51.73%
Sector *	64 Neutral	$12.73B	9.77	7.84%	78.17%	12.05%	-7.99%

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.