Buffett Brain · Research note
Score updated 22 Oct 2026 · analysis from 25 May 2026
TRV· Financial Services
The Travelers Companies
Travelers Companies has a solid ROIC of 15.7%, but weak margins raise concerns about its competitive positioning in the insurance sector.
Buffett fit
Partial fit
Owner
43
Durability
83
Management
56
Price
47
Score updated 22 Oct 2026 · analysis from 25 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Travelers Companies outright, I would focus on maintaining profitability and ensuring that the business can sustain its competitive edge over the next decade.
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The company's ability to remain profitable in all five of the last years suggests a solid foundation.
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With a share count CAGR of -2.54% and a yield of 2.99%, management appears committed to returning value to shareholders.
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The current earnings yield of 11.79% is attractive, indicating a ratio of 8.5, which is below the no-brainer threshold of 10-12.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 15.7% is well above the sector top-quintile cutoff of 7.7%.
- 25-year EPS CAGR of 17.45% shows strong growth potential.
- 3Net margin of 15.54% is solid compared to the sector average.
- 4Debt/Equity ratio of 0.29 indicates a conservative capital structure.
Concerns
5- 1 of 44.02% is significantly below the sector top-quintile cutoff of 80.2%.
- 2 of 19.3% is also below the sector top-quintile cutoff of 58.2%.
- 3The /Net income ratio of 1.69, while positive, suggests some caution on cash flow quality.
- 4If the 5-year EPS max decline of -18.59% becomes a trend, it could indicate underlying issues.
Price history
$399+145.7%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Travelers Companies provides a diverse range of property and casualty insurance products across commercial and personal segments. With revenue of $48.83B and net income of $6.29B, the company has demonstrated profitability through various market conditions. The business model relies on collecting premiums upfront, which allows for substantial float to invest before claims are paid out.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Financial Services
Questions about The Travelers Companies
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