The Travelers (BSP:TRVC34) Financial Strength: 5 (As of Jun. 2026) — Near Median

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Director of Data and Quant Analytics at GuruFocus
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BSP:TRVC34 The Travelers Companies Inc BSP:TRVC34
57 GF Score
Price R$60.00
GF Value R$38.08
Valuation Significantly Overvalued
! 6 Warning Signs
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What is The Travelers Financial Strength?

The Travelers BSP:TRVC34 +0.60% 57 Financial Strength is 5 as of Jun. 2026, which is at its 10-year median of 5.00. GuruFocus rates BSP:TRVC34 with a GF Score™ of 57/100 and a GF Value™ of R$38.08 (Significantly Overvalued). The stock has 6 warning signs investors should review.

The Travelers has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

The Travelers's Interest Coverage for the quarter that ended in Jun. 2026 was 25.49. The Travelers's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.19. Altman Z-Score does not apply to banks and insurance companies.

The Travelers  (BSP:TRVC34) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

The Travelers has the Financial Strength Rank of 5.

The Travelers Financial Strength Related Terms

BSP:TRVC34
57GF Score
The Travelers Companies Inc BSP:TRVC34
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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The Travelers Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

The Travelers's Interest Expense for the months ended in Jun. 2026 was R$-579 Mil. Its Operating Income for the months ended in Jun. 2026 was R$0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was R$45,953 Mil.

The Travelers's Interest Coverage for the quarter that ended in Jun. 2026 is

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

The Travelers's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(512.41 + 45952.929) / 249092.748
=0.19

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Altman Z-Score does not apply to banks and insurance companies.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 5 mean?
The Travelers (BSP:TRVC34) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on The Travelers and its competitors. This is near median its historical median of 5.00. Over the past decade, The Travelers' Financial Strength has ranged from 3.00 to 6.00.
Is The Travelers' Financial Strength too high?
The Travelers' current Financial Strength of 5 is near median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 6.00. Overall, The Travelers has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Travelers' Financial Strength compare to ALL and PGR?
The Travelers' Financial Strength of 5 can be compared against companies in the Insurance industry. Historically, The Travelers' own Financial Strength has ranged from 3.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Insurance company?
A good Financial Strength depends on the Insurance industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on The Travelers and its competitors. The Travelers's current Financial Strength is 5, which is near median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Travelers stock overvalued right now?
Based on GuruFocus' analysis, The Travelers (BSP:TRVC34) is currently considered Significantly Overvalued. The stock's GF Value™ is R$38.08, compared to a current price of R$60.00 — trading 57.6% above its estimated fair value. The current Financial Strength is 5, which is near median its 10-year median of 5.00. The Travelers' overall GF Score™ is 57/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For The Travelers (BSP:TRVC34), the current Financial Strength is 5 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is The Travelers (BSP:TRVC34) Overvalued in 2026?

Based on GuruFocus' analysis, The Travelers stock appears to be overvalued. The current stock price of R$60.00 is trading 57.6% above its estimated GF Value™ of R$38.08. GuruFocus considers The Travelers to be Significantly Overvalued.

Key valuation signals for BSP:TRVC34:

  • Financial Strength: 5 (near median its 10-year median of 5.00)
  • GF Value™: R$38.08 vs. price of R$60.00 (57.6% above fair value)
  • GF Score™: 57/100 with 6 warning signs

No single metric tells the full story. See the BSP:TRVC34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

The Travelers Business Description

Address 485 Lexington Avenue, New York, NY, USA, 10017
Travelers offers a broad product range and participates in both commercial and personal insurance lines. Its commercial operations offer a variety of coverage types for companies of any size but concentrate on serving midsize businesses. Its personal lines are roughly evenly split between auto and homeowners insurance.
57GF Score

Get the complete analysis for BSP:TRVC34

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R$60.00
Price
R$38.08
GF Value