TRV · Financials(fire, marine & casualty insurance) · 10 years of annual accounts filed with the SEC · latest fiscal year ended 2025-12-31
Travelers Companies, Inc. reported revenue of $48.8 billion in fiscal 2025, after growing 6.5% a year over the previous 9 years. Its operating margin held steady at about 16.8% from 2016, and it earned 20.0% on its invested capital in the latest year. Of the $65.9 billion its operations generated over 10 years, 24.7% went to buybacks and 13.1% to dividends; the share count fell 21.8%. On the accounting screens, it passes 5 of 7 Piotroski tests; none of the six cross-checks between its statements fires.
Revenue, fiscal 202548.8B+6.5% a year over 9 years
Operating margin16.8%gross margin —
Return on invested capital20.0%16.1% on average over 5 years
Free cash flow—
Net debt ÷ EBITDANet cash542.0M more cash than debt
Piotroski F-score5/7tests of improvement passed
Is it growing?
Revenue and the operating income it turns into. Growth that does not reach operating income is growth bought with margin.
RevenueOperating income
020.0B40.0B60.0B
2016Revenue 27.6BOperating income 4.4B
2017Revenue 28.9BOperating income 3.1B
2018Revenue 30.3BOperating income 3.3B
2019Revenue 31.6BOperating income 3.5B
2020Revenue 32.0BOperating income 3.6B
2021Revenue 34.8BOperating income 4.8B
2022Revenue 36.9BOperating income 3.7B
2023Revenue 41.4BOperating income 3.7B
2024Revenue 46.4BOperating income 6.6B
2025Revenue 48.8BOperating income 8.2B
2016201720182019202020212022202320242025
Compound growth a year
3 yrs
5 yrs
9 yrs
Revenue
+9.8%
+8.8%
+6.5%
Operating income
+30.4%
+18.1%
+7.1%
Net income
+30.3%
+18.4%
+8.5%
Earnings per share
+32.6%
+21.1%
+11.5%
Dividend per share
+5.6%
+4.9%
+5.7%
Shares
-1.7%
-2.2%
-2.7%
Falling shares are buybacks: each remaining share owns more of the company.
Does it earn more than its capital costs?
Margins say how much of each sale is kept; return on invested capital says how much the business earns on the money it needs to operate. Growth only creates value when that return is above the cost of the capital.
GrossOperatingNetFree cash flow
0.0%5.0%10.0%15.0%20.0%
2016Operating 16.0%Net 10.9%
2017Operating 10.7%Net 7.1%
2018Operating 10.9%Net 8.3%
2019Operating 11.0%Net 8.3%
2020Operating 11.2%Net 8.4%
2021Operating 13.8%Net 10.5%
2022Operating 10.0%Net 7.7%
2023Operating 9.1%Net 7.2%
2024Operating 14.2%Net 10.8%
2025Operating 16.8%Net 12.9%
2016201720182019202020212022202320242025
Return on invested capital
Return on invested capital
0.0%5.0%10.0%15.0%20.0%
2016Return on invested capital 13.8%
2017Return on invested capital 9.6%
2018Return on invested capital 12.0%
2019Return on invested capital 11.0%
2020Return on invested capital 10.2%
2021Return on invested capital 13.6%
2022Return on invested capital 14.5%
2023Return on invested capital 13.3%
2024Return on invested capital 19.0%
2025Return on invested capital 20.0%
2016201720182019202020212022202320242025
Economic profit
Needs a cost of capital, which comes from the valuation below.
Return on equity
19.1%
Return on assets
4.4%
Asset turnover
0.34×
Overheads (SG&A)
12.5% of revenue
Is the profit cash, and where does the cash go?
Net income is an accounting opinion; free cash flow is what was left in the bank after investing. Stock-based pay does not leave the bank — shareholders pay it through dilution — so it is shown taken off as well.
Net incomeFree cash flowAfter stock-based pay
02.0B4.0B6.0B8.0B
2016Net income 3.0B
2017Net income 2.1B
2018Net income 2.5B
2019Net income 2.6B
2020Net income 2.7B
2021Net income 3.7B
2022Net income 2.8B
2023Net income 3.0B
2024Net income 5.0B
2025Net income 6.3B
2016201720182019202020212022202320242025
Where 10 years of operating cash went, 2016–2025
65.9B generated by the business. Each band is its share of that total.
Reinvested in the business 0%0
Acquisitions 1%867.0M
Dividends 13%8.6B
Share buybacks 25%16.3B
Kept, or used to pay down debt 61%40.0B
Over the same years it paid 1.8B in stock. The share count fell 21.8%. 14.5B of the buybacks went beyond offsetting that dilution.
Per share
Earnings per shareFree cash flow per shareDividend per share
$0.00$10.00$20.00$30.00
2016Earnings per share $10.36Dividend per share $2.60
2017Earnings per share $7.38Dividend per share $2.82
2018Earnings per share $9.35Dividend per share $3.02
2019Earnings per share $10.00Dividend per share $3.22
2020Earnings per share $10.59Dividend per share $3.38
2021Earnings per share $14.60Dividend per share $3.46
2022Earnings per share $11.86Dividend per share $3.65
2023Earnings per share $12.88Dividend per share $3.91
2024Earnings per share $21.63Dividend per share $4.12
2025Earnings per share $27.63Dividend per share $4.30
2016201720182019202020212022202320242025
Shares outstanding
Diluted shares
220.0M240.0M260.0M280.0M300.0M
2016Diluted shares 291.0M
2017Diluted shares 278.6M
2018Diluted shares 269.8M
2019Diluted shares 262.3M
2020Diluted shares 254.6M
2021Diluted shares 250.8M
2022Diluted shares 239.7M
2023Diluted shares 232.2M
2024Diluted shares 231.1M
2025Diluted shares 227.6M
2016201720182019202020212022202320242025
How strong is the balance sheet?
Debt is not bad in itself; debt the business cannot service in a bad year is. Net debt is debt minus cash, and below zero the company holds more cash than it owes.
Net debt
-750.0M-500.0M-250.0M0250.0M500.0M
2016Net debt 243.0M
2017Net debt 256.0M
2018Net debt 227.0M
2019Net debt 106.0M
2020Net debt -621.0M
2021Net debt -661.0M
2022Net debt -699.0M
2023Net debt -550.0M
2024Net debt -599.0M
2025Net debt -542.0M
2016201720182019202020212022202320242025
Net debt ÷ EBITDA
-0.1×
Interest coverage
19× operating income ÷ interest
Current ratio
— current assets ÷ current liabilities
Cash conversion cycle
—
Three classic screens of the accounts
Each asks a different question of the same statements — is it improving, does it look like a company heading for distress, do the accounts resemble ones that were manipulated. None is a verdict; each shows what moves it.
Piotroski F-score
Is the business improving? Nine yes-or-no tests, this year against last.
5of 7 tests passed
✓ProfitableReturn on assets above zeropassed
✓Cash from operationsOperating cash flow above zeropassed
✓Profitability improvedReturn on assets higher than a year beforepassed
✓Profit backed by cashOperating cash flow above net income (low accruals)passed
✕Less long-term debtLong-term debt as a share of assets fellfailed
–More liquidCurrent ratio higher than a year before — not reportedno data
✓No new sharesShare count did not growpassed
–Better gross marginGross margin higher than a year before — not reportedno data
✕Sells more per assetAsset turnover higher than a year beforefailed
Where it misleads: it measures change, not level. An excellent business that stood still for a year scores low; a poor one recovering from a disaster scores high.
Altman Z''-score
Does the balance sheet look like those of companies that went bankrupt?
The accounts lack a line it needs (retained earnings, current assets or liabilities).
Beneish M-score
Do the accounts resemble those of companies that manipulated their earnings?
The accounts lack too many of the lines it needs.
Where the statements disagree
Cross-checks between the income statement, the balance sheet and the cash flow for the latest year, each with the benign reading and the worrying one.
None of the six cross-checks fires for the latest year: receivables and inventory move with revenue, profit turns into cash, investment keeps up with depreciation, the tax rate is ordinary and debt is moderate.
What is it worth, under which assumptions?
A company is worth the cash it will generate, brought back to today. This model projects revenue with growth that fades over the years, applies a free cash flow margin, and discounts the result at the cost of capital. Every assumption says where it came from, and all of them can be changed.
The SEC accounts lack the lines needed for revenue, free cash flow or the share count, so there is no DCF for this company.
What it has filed lately
The last twelve months at the SEC, most important first: annual and quarterly reports, events, large holders and insiders.
Accounts from the company's own SEC filings; lines some companies do not report are shown as a dash rather than estimated. The risk-free rate is the 10-year US Treasury yield. A DCF is a way of making assumptions explicit, not a forecast: it states what the company would be worth if the assumptions held. The scores are screens that point where to look, not verdicts. Nothing here is a recommendation to buy or sell.
