When a major sector of the stock market is down substantially, it often happens that some good to great companies see their share prices fall as well. So it is now with several insurance stocks in the financial sector, and symbol TRV, or The Travelers Companies, Inc., in particular.
TRV (price per share $44.46), with several lines of personal and business insurance, is one of the giants, having a market-cap of over $26 billion despite the market and Travelers' share price being down substantially over the last 12 months.
TRV has excellent price to value. With all statistics effective as of the close of trading on 8/15/08, the trailing price to earnings ratio is a mere 6.8, while the forward estimate of its P/E is only 7.6, about half the long-term market average. The companies' price is only slightly above the value of its assets less liabilities or book value (P/Bk. 1.0). It has a healthy, way above median dividend of 2.7%, with a safe dividend payout ratio of just 0.2. TRV's average earnings have increased significantly for the past few years. Debt to equity is comfortably low (at 0.2). The return on equity is 16.27%. Cash flow is positive (P/CF low at 5.8). It has a strong balance sheet and little sub-prime involvement.