Travelers Companies Net Income vs. Beta

TRV Stock  USD 230.14  1.31  0.57%   
Based on Travelers Companies' profitability indicators, The Travelers Companies may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in April. Profitability indicators assess Travelers Companies' ability to earn profits and add value for shareholders.

Travelers Companies Net Income

1.82 Billion

Price To Sales Ratio is likely to drop to 0.86 in 2024. Operating Cash Flow Sales Ratio is likely to drop to 0.11 in 2024. At this time, Travelers Companies' Income Tax Expense is fairly stable compared to the past year. Total Other Income Expense Net is likely to climb to about 3.5 B in 2024, despite the fact that Operating Income is likely to grow to (20.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.06770.0723
Notably Down
Very volatile
Pretax Profit Margin0.07740.0815
Notably Down
Slightly volatile
Return On Assets0.01830.0254
Way Down
Pretty Stable
Return On Equity0.0880.12
Way Down
Pretty Stable
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.
  
Check out 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.
Quarterly Earnings Growth
1.032
Dividend Share
3.93
Earnings Share
12.79
Revenue Per Share
180.078
Quarterly Revenue Growth
0.134
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 if Travelers Companies is a good investment 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 Beta vs. Net Income 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 net income category among related companies. It is currently regarded as top stock in beta category among related companies . The ratio of Net Income to Beta for The Travelers Companies is about  5,006,745,363 . At this time, Travelers Companies' Net Income is fairly stable compared to the past year.. 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 Beta vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Travelers Companies

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
2.97 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.

Travelers Companies

Beta

 = 

Covariance

Variance

 = 
0.59
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

Travelers Beta Comparison

Travelers Companies is currently under evaluation in beta category among related companies.

Beta Analysis

As returns on the market increase, Travelers Companies' returns are expected to increase less than the market. However, during the bear market, the loss of holding Travelers Companies is expected to be smaller as well.

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.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-4.5 B-4.2 B
Operating Income-22 M-20.9 M
Net IncomeBB
Income Tax Expense380 M500.6 M
Income Before Tax3.4 B2.8 B
Total Other Income Expense Net3.4 B3.5 B
Net Income Applicable To Common Shares3.3 B3.1 B
Net Income From Continuing OpsBB
Interest Income315.9 M283.1 M
Net Interest Income-376 M-394.8 M
Change To Netincome-245.7 M-233.4 M
Net Income Per E B T 0.89  0.50 

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 instruments. 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.

Did You Try This Idea?

Run Utilities Thematic Idea Now

Utilities
Utilities Theme
Highly leveraged corporations that deliver utilities such as power, water or gas to public or business. The Utilities theme has 30 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 Utilities Theme or any other thematic opportunities.
View All  Next Launch
When determining whether The Travelers Companies is a strong investment it is important to analyze Travelers Companies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Travelers Companies' future performance. For an informed investment choice regarding Travelers Stock, refer to the following important reports:
Check out World Market Map.
You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

Complementary Tools for Travelers Stock analysis

When running Travelers Companies' price analysis, check to measure Travelers Companies' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Travelers Companies is operating at the current time. Most of Travelers Companies' value examination focuses on studying past and present price action to predict the probability of Travelers Companies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Travelers Companies' price. Additionally, you may evaluate how the addition of Travelers Companies to your portfolios can decrease your overall portfolio volatility.
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Money Managers
Screen money managers from public funds and ETFs managed around the world
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
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.