The Travelers Companies, Inc. Fundamental Analysis (XETRA: PA9.DE)
The Travelers Companies, Inc. Fundamental Analysis (XETRA: PA9.DE)
The Travelers Companies, Inc. (XETRA: PA9.DE) shows strong financial fundamentals with a PE ratio of 10.39, profit margin of 17.03%, and ROE of 26.47%. The company generates $56.1B in annual revenue with moderate year-over-year growth of 5.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PA9.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakPA9.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPA9.DE trades at attractive valuation levels.
Growth Score
ExcellentPA9.DE delivers strong and consistent growth momentum.
Financial Health Score
ModeratePA9.DE shows balanced financial health with some risks.
Profitability Score
ExcellentPA9.DE achieves industry-leading margins.
Key Financial Metrics
Is PA9.DE Expensive or Cheap?
P/E Ratio
PA9.DE trades at 10.39 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PA9.DE's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values The Travelers Companies, Inc. at 2.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.55 times EBITDA. This is generally considered low.
How Well Does PA9.DE Make Money?
Net Profit Margin
For every $100 in sales, The Travelers Companies, Inc. keeps $17.03 as profit after all expenses.
Operating Margin
Core operations generate 21.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.47 in profit for every $100 of shareholder equity.
ROA
The Travelers Companies, Inc. generates $6.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Travelers Companies, Inc. produces operating cash flow of $12.28B, showing steady but balanced cash generation.
Free Cash Flow
The Travelers Companies, Inc. generates strong free cash flow of $12.28B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $58.90 in free cash annually.
FCF Yield
PA9.DE converts 12.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How PA9.DE Stacks Against Its Sector Peers
| Metric | PA9.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.39 | 20.40 | Better (Cheaper) |
| ROE | 26.47% | 638.00% | Weak |
| Net Margin | 17.03% | -568.00% (disorted) | Strong |
| Debt/Equity | 0.34 | 0.84 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 818.60 | Weak Liquidity |
| ROA | 6.41% | 60.00% | Weak |
PA9.DE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Travelers Companies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
72.63%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
163.62%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
83.96%
Industry Style: Value, Dividend, Cyclical
High Growth