Now trading at a price of $76.57, Loews has moved -3.4% so far today.
Loews returned gains of 21.2% last year, with its stock price reaching a high of $83.54 and a low of $64.84. Over the same period, the stock underperformed the S&P 500 index by -10.0%. The company's 50-day average price was $79.67. Loews Corporation provides commercial property and casualty insurance in the United States and internationally. Based in New York, NY, the Large-Cap Finance company has 12,280 full time employees. Loews has offered a 0.3% dividend yield over the last 12 months.
The Company's Revenues Are Declining:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $14,066 | $14,931 | $12,583 | $14,657 | $14,044 | $15,901 |
| Interest Income (M) | $574 | $591 | $515 | $424 | $378 | $376 |
| Operating Margins | 6% | 7% | -12% | 15% | 8% | 13% |
| Net Margins | 5% | 6% | -7% | 11% | 6% | 9% |
| Net Income (M) | $636 | $932 | -$931 | $1,562 | $822 | $1,434 |
| Depreciation & Amort. (M) | $912 | $943 | $734 | $515 | $509 | $538 |
| Diluted Shares (M) | 320 | 303 | 280 | 260 | 243 | 228 |
| Earnings Per Share | $1.99 | $3.07 | -$3.32 | $6.0 | $3.38 | $6.29 |
| EPS Growth | n/a | 54.27% | -208.14% | 280.72% | -43.67% | 86.09% |
| Avg. Price | $48.31 | $49.2 | $38.64 | $53.54 | $61.65 | $76.25 |
| P/E Ratio | 24.28 | 15.97 | -11.64 | 8.89 | 18.19 | 12.1 |
| Free Cash Flow (M) | $3,227 | $700 | $1,035 | $2,141 | $2,654 | $3,221 |
| CAPEX (M) | $995 | $1,041 | $710 | $482 | $660 | $686 |
| EV / EBITDA | 15.38 | 12.86 | -28.43 | 8.44 | 14.66 | 10.47 |
| Total Debt (M) | $11,376 | $11,533 | $10,109 | $9,079 | $9,019 | $9,003 |
| Net Debt / EBITDA | 6.28 | 5.43 | -13.19 | 3.14 | 5.23 | 3.4 |
| Current Ratio | 227.59 | 60.1 | 126.32 | 52.26 | 5.68 | 0.37 |
Loews has weak operating margins with a positive growth rate, positive cash flows, and significant leverage levels. We also note that the company has exceptional EPS growth working in its favor. However, the firm suffers from slight revenue growth and decreasing reinvestment in the business and not enough current assets to cover current liabilities because its current ratio is 0.37.
The Market May Be Undervaluing Loews's Assets and Equity:
Loews has a trailing twelve month P/E ratio of 11.7, compared to an average of 20.04 for the Finance sector. Based on its EPS guidance of $2.9, the company has a forward P/E ratio of 27.5. The 5.5% compound average growth rate of Loews's historical and projected earnings per share yields a PEG ratio of 2.11. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Loews in terms of its equity because its P/B ratio is 1.03 while the sector average is 1.86. The company's shares are currently trading -22.5% above their Graham number.
Overview of Loews's Market Factors:
Loews has a very low short interest because 0.9% of the company's shares are sold short. Institutions own 59.7% of the company's shares, and the insider ownership rate stands at 18.43%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $1,625,611,721.
