Travelers Companies Profitability Analysis

TRV
 Stock
  

USD 150.60  4.88  3.14%   

For Travelers Companies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Travelers Companies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well The Travelers Companies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Travelers Companies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of The Travelers Companies over time as well as its relative position and ranking within its peers. Additionally, take a look at World Market Map.
  
Is Travelers Companies' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Travelers Companies. If investors know Travelers will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Travelers Companies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of The Travelers Companies is measured differently than its book value, which is the value of Travelers that is recorded on the company's balance sheet. Investors also form their own opinion of Travelers Companies' value that differs from its market value or its book value, called intrinsic value, which is Travelers Companies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Travelers Companies' market value can be influenced by many factors that don't directly affect Travelers Companies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Travelers Companies' value and its price as these two are different measures arrived at by different means. Investors typically determine Travelers Companies value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Travelers Companies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

The Travelers Companies Shares Owned by Insiders vs. Z Score Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Travelers Companies's current stock value. Our valuation model uses many indicators to compare Travelers Companies value to that of its competitors to determine the firm's financial worth.
The Travelers Companies is currently regarded as top stock in z score category among related companies. It is currently regarded as top stock in shares owned by insiders category among related companies making about  0.07  of Shares Owned by Insiders per Z Score. The ratio of Z Score to Shares Owned by Insiders for The Travelers Companies is roughly  14.29 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Travelers Companies by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Travelers Companies' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Travelers Companies' earnings, one of the primary drivers of an investment's value.

Travelers Shares Owned by Insiders vs. Z Score

Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Travelers Companies 
Z Score 
 = 
Sum Of  
 
5 Factors 
3.0
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.
Travelers Companies 
Insiders Shares 
 = 
Executives Shares 
Employees 
0.21 %
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.

Travelers Companies Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Travelers Companies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Travelers Companies will eventually generate negative long term returns. The profitability progress is the general direction of Travelers Companies' change in net profit over the period of time. It can combine multiple indicators of Travelers Companies, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
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 Travelers Companies, Inc. was founded in 1853 and is based in New York, New York. Travelers Companies operates under InsuranceProperty Casualty classification in the United States and is traded on New York Stock Exchange. It employs 30184 people.

Travelers Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Travelers Companies. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Travelers Companies position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Travelers Companies' important profitability drivers and their relationship over time.

Use Travelers Companies in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Travelers Companies position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Travelers Companies will appreciate offsetting losses from the drop in the long position's value.

Travelers Companies Pair Trading

The Travelers Companies Pair Trading Analysis

The ability to find closely correlated positions to Travelers Companies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Travelers Companies when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Travelers Companies - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling The Travelers Companies to buy it.
The correlation of Travelers Companies is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Travelers Companies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if The Travelers Companies moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Travelers Companies can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Travelers Companies position

In addition to having Travelers Companies in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Data Storage
Data Storage Theme
Companies making data storages or providing data storage services. The Data Storage theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Data Storage Theme or any other thematic opportunities.
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Additionally, take a look at World Market Map. You can also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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To fully project Travelers Companies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of The Travelers Companies at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Travelers Companies' income statement, its balance sheet, and the statement of cash flows.
Potential Travelers Companies investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Travelers Companies investors may work on each financial statement separately, they are all related. The changes in Travelers Companies's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Travelers Companies's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.