A Closer Look at Travelers Stock Today

by Rob Otman

Travelers stock had a good day in the market on Thursday March 8. Shares climbed 1.09% and closed the day at $139.67. They're now trading 7.23% below their 52-week high of $150.55.

With today's good gain, Travelers now has a market cap of $38 billion. That makes it a large cap company.

The business operates in the property and casualty insurance industry and employs 30,900 people. Its shares trade primarily on the New York stock exchange.

Travelers has 271.43 million shares outstanding and 1.61 million traded hands for the day. That's below the average 30-day volume of 2.17 million shares. The amount of Travelers stock is also dropping as the company buys back its own shares. In the last 12 months, it repurchased $1,439 million worth.

Over the last five years, Travelers revenue is up by 12.28%. You can see this growth in annual revenue chart below...

Travelers stock Annual Revenue

In the last year alone, Travelers revenue has grown by 4.62%. That's a solid sign for Travelers stock owners.

We like to invest in companies that grow their sales. A growing top line is a sign of a healthy business.

For now, Travelers will continue to pull in revenue. So let's take a closer look at the company's total financial health. And the best way to do that is by looking at its balance sheet... Travelers cash comes in at $344 million and the company's debt is $7 billion...

Travelers Cash vs. Debt

Travelers cash pile is smaller than its total debt. This is common for many companies. They can issue debt at a lower cost to take on new projects... but the debt to cash level is a bit high and is a concern for the business.

What is Travelers Stock Worth?

Let's look at a few key ratios to determine the value of Travelers stock…

Price-to-Earnings (P/E): This is one of the most widely used metrics and it comes in at 17.57. That's a reasonable level and generally, the lower the better. Investors will bid up stock prices and in turn, P/E ratios, when they expect future earnings to grow.

Price-to-Book (P/B): This ratio is a cornerstone for value investors. A lower number here indicates a better value play. And at 1.6, Travelers looks reasonable… but P/B varies greatly based on the industry.

These two metrics are a great place to start when valuing a company... but your analysis should go much deeper...

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