Travelers Companies Stock Fair Value Calculation – Travelers Companies Reports 10.5% Increase in Revenue, Net Loss of USD 14 million in Q2 FY2023
July 22, 2023
🌥️Earnings Overview
On July 20 2023, Travelers Companies ($NYSE:TRV) reported their Q2 earnings results for FY2023, which showed total revenue of USD 10098.0 million, a 10.5% rise from the previous year’s figure. The net income was reported at USD -14.0 million, compared to USD 551.0 million in the year prior.
Analysis – Travelers Companies Stock Fair Value Calculation
GoodWhale has conducted an in-depth analysis of TRAVELERS COMPANIES’ fundamentals. Our proprietary Valuation Line calculated the fair value of TRAVELERS COMPANIES share to be around $169.3. Currently, TRAVELERS COMPANIES stock is being traded at $173.6, slightly higher than the fair price by 2.5%. This implies that the stock is slightly overvalued. However, it may be worth to invest in TRAVELERS COMPANIES as it may still provide higher returns due to its potential growth opportunities. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Travelers Companies. More…
| Total Revenues | Net Income | Net Margin |
| 38.75k | 2.22k | 5.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Travelers Companies. More…
| Operations | Investing | Financing |
| 6.38k | -4.67k | -1.82k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Travelers Companies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 120.57k | 98.72k | 95.48 |
Key Ratios Snapshot
Some of the financial key ratios for Travelers Companies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.3% | – | 7.1% |
| FCF Margin | ROE | ROA |
| 16.5% | 7.7% | 1.4% |
Peers
The Travelers Companies Inc is in competition with Donegal Group Inc, Conifer Holdings Inc, and WR Berkley Corp. Travelers is a leading provider of property casualty insurance for auto, home, and business. The company offers a wide range of insurance products and services through its subsidiaries. Donegal Group Inc is a holding company for subsidiaries that engage in the property and casualty insurance business. Conifer Holdings Inc is a holding company for Conifer Insurance Company, which offers property and casualty insurance products. WR Berkley Corp is an insurance holding company that operates through its subsidiaries.
– Donegal Group Inc ($NASDAQ:DGICA)
As of 2022, Donegal Group Inc has a market cap of 467.74M and a Return on Equity of 0.82%. The company is a provider of insurance products and services in the United States. Donegal Group Inc offers a range of insurance products, including auto, property, and liability insurance, as well as life and health insurance. The company also provides a variety of services, such as risk management, claims handling, and policy administration.
– Conifer Holdings Inc ($NASDAQ:CNFR)
Conifer Holdings, Inc. is a holding company that owns and operates a number of property and casualty insurance companies. The company has a market cap of $19.18M and a Return on Equity of -29.11%. Conifer Holdings is focused on providing insurance solutions to the transportation industry, including trucking, public transportation, and logistics companies. The company offers a range of insurance products, including liability, cargo, and physical damage coverage. Conifer Holdings is headquartered in New York, New York.
– WR Berkley Corp ($NYSE:WRB)
W. R. Berkley Corporation is an insurance holding company, which engages in the underwriting and insurance services. It operates through the following segments: Insurance, Reinsurance, and Insurance Services. The Insurance segment offers property and casualty insurance products. The Reinsurance segment provides reinsurance on both a direct and assumed basis. The Insurance Services segment comprises of management and other ancillary services. The company was founded by William Robert Berkley in 1967 and is headquartered in Greenwich, CT.
Summary
TRAVELERS COMPANIES reported their Q2 earnings results for FY2023 on July 20, with total revenue of USD 10098.0 million up 10.5% compared to the previous year. Net income declined to USD -14.0 million from USD 551.0 million in the same period in FY2022. Investors should consider this short-term decline in net income amid the pandemic and look to the long-term outlook of the company.
The outlook of the company is largely dependent on the broader economy and its ability to manage risks. Investors should carefully assess the short-term and long-term trajectory of TRAVELERS COMPANIES to make an informed investing decision.
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