Travelers Companies (TRV) AI Stock Analysis

• Market Cap: $59.64B
• Dividend Yield: 1.55%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.46
• Revenue Growth: 8.54%
• EPS Growth: 43.51%
• Country: US
• Employees: 34,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 6.51
• Shares Outstanding: 225,133,830
• 10 Day Avg. Volume: 1,152,480
• 30 Day Avg. Volume: 1,292,728
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 1.45
• Enterprise Value/Ebitda: 9.47
• 1Y Price Target: $295.41
• Price Target Upside: 7.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 81 Outperform
• Price Target: $306.00 ▲(11.52% Upside)

Travelers Companies is well-positioned with strong financial performance, strategic corporate actions, and a stable technical outlook. The company's robust earnings call highlights significant improvements and strategic initiatives, while the valuation remains attractive. These factors contribute to a favorable overall stock score.

Positive Factors

Earnings

Core EPS significantly exceeded consensus expectations, with a reported $6.51 compared to the expected $3.65.

Underwriting

Strong underwriting supported the earnings beat, contributing positively despite a slowdown in growth.

Negative Factors

Net Premiums

Net premiums written growth missed expectations, coming in at 3.8% compared to the anticipated 6.0%, impacting all segments.

Personal Auto

Personal Auto premiums declined, raising concerns as other carriers are seeing growth despite favorable combined ratios.

Travelers Companies Business Overview & Revenue Model

Company Description

Travelers Companies, Inc. (TRV) is a leading provider of property and casualty insurance products and services in the United States. Founded in 1853, the company operates through various segments, including Business Insurance, Bond & Specialty Insurance, and Personal Insurance. Travelers offers a wide range of insurance solutions, such as commercial auto, general liability, workers' compensation, homeowners, and renters insurance, catering to both individual and business clients.

How the Company Makes Money

Travelers Companies generates revenue primarily through the collection of premiums from its insurance policies. The company earns income by underwriting insurance policies, which involves assessing risk and determining the premiums charged to policyholders. Key revenue streams include commercial insurance premiums from businesses, personal insurance premiums from individuals, and investment income from managing its insurance reserves. Significant partnerships with agents and brokers enhance distribution and market reach, while a disciplined approach to underwriting and risk management helps maintain profitability. Additionally, Travelers invests in financial markets, which contributes to its earnings through investment income.

Travelers Companies Financial Statement Overview

Summary

Travelers Companies exhibits strong financial health with consistent revenue growth, solid profitability margins, and a robust balance sheet. Efficient cash management is evident, supporting strategic flexibility. The low debt levels reduce financial risk, while high equity returns indicate efficient asset utilization. Overall, the company is well-positioned for continued stability and growth in the competitive insurance sector.

Income Statement

The income statement shows strong revenue growth with a TTM increase of 11.4% from the previous year. The Gross Profit Margin remains consistent at 100%, indicative of the company's solid revenue base. The Net Profit Margin improved to 11%, reflecting better operational efficiency. The EBIT and EBITDA margins also demonstrate steady financial health with EBIT at 10.3% and EBITDA at 15.3% in TTM, ensuring robust profitability.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.27, suggesting prudent leverage levels. The Return on Equity (ROE) increased to 17.8% in TTM, highlighting efficient equity usage. The Equity Ratio stands at 21.3%, reflecting a strong equity base, albeit slightly lower than ideal for full stability against liabilities.

Cash Flow

Cash flow analysis reveals strong cash generation capabilities with a 6.2% growth in free cash flow in TTM. The Operating Cash Flow to Net Income ratio of 1.84 indicates excellent cash conversion efficiency, and the Free Cash Flow to Net Income ratio of 1.84 underscores the robust liquidity position despite heavy investing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.84B	46.42B	41.36B	36.88B	34.82B	31.98B
Gross Profit	47.84B	46.42B	41.36B	36.88B	34.82B	31.98B
EBITDA	7.32B	6.57B	4.47B	4.53B	5.67B	4.37B
Net Income	5.25B	5.00B	2.99B	2.84B	3.66B	2.70B
Balance Sheet
Total Assets	138.87B	133.19B	125.98B	115.72B	120.47B	116.76B
Cash, Cash Equivalents and Short-Term Investments	92.84B	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	109.36B	105.33B	101.06B	94.16B	91.58B	87.56B
Stockholders Equity	29.52B	27.86B	24.92B	21.56B	28.89B	29.20B
Cash Flow
Free Cash Flow	9.63B	9.07B	7.71B	6.46B	7.27B	6.52B
Operating Cash Flow	9.63B	9.07B	7.71B	6.46B	7.27B	6.52B
Investing Cash Flow	-7.61B	-7.26B	-6.82B	-3.73B	-5.20B	-4.89B
Financing Cash Flow	-2.11B	-1.75B	-1.05B	-2.67B	-2.04B	-1.42B

Travelers Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 274.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 274.39 is above the 20-day moving average (MA) of 264.05, above the 50-day MA of 262.66, and above the 200-day MA of 255.22, indicating a bullish trend. The MACD of 2.14 indicates Negative momentum. The RSI at 63.70 is Neutral, neither overbought nor oversold. The STOCH value of 64.78 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	83 Outperform	$26.74B	16.05	20.63%	2.21%	11.41%	15.32%
ALL	82 Outperform	$54.57B	9.74	27.33%	1.83%	9.81%	94.71%
TRV	81 Outperform	$59.64B	11.71	19.29%	1.55%	8.54%	43.51%
PGR	80 Outperform	$144.85B	13.91	37.29%	1.94%	21.50%	51.86%
CB	79 Outperform	$108.81B	12.04	14.10%	1.32%	6.74%	-4.05%
MKL	72 Outperform	$24.74B	11.83	13.23%	―	1.66%	8.51%
Sector *	68 Neutral	$17.52B	11.72	10.45%	3.85%	9.75%	2.39%

Travelers Companies Corporate Events

Travelers Companies Issues $1.25 Billion in Senior Notes

On July 21, 2025, Travelers Companies, Inc. entered into an Underwriting Agreement with several financial institutions for the issuance and sale of $1.25 billion in senior notes. This strategic move is expected to impact the company’s financial operations by potentially enhancing its capital structure and market positioning.

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.

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.