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Loews Corp (L)
NYSE:L
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Loews
(NYSE:L)60Neutral
Loews (L) vs. S&P 500 (SPY)
Market Cap
$18.11B
Dividend Yield0.29%
Average Volume (3M)718.62K
Price to Earnings (P/E)13.3
Beta (1Y)0.44
Revenue Growth10.44%
EPS Growth1.63%
CountryUS
Employees13,000
SectorFinancial
Sector Strength93
IndustryInsurance
Share Statistics
EPS (TTM)6.40
Shares Outstanding212,861,300
10 Day Avg. Volume716,170
30 Day Avg. Volume718,622
Financial Highlights & Ratios
PEG Ratio8.15
Price to Book (P/B)N/A
Price to Sales (P/S)1.06
Price to Cash Flow (P/CF)4.90
P/FCF Ratio3.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Loews Business Overview & Revenue Model
Company DescriptionLoews Corporation (L) is a diversified holding company that operates across multiple sectors, including insurance, energy, hospitality, and packaging. The company is involved in the management and oversight of a variety of subsidiaries, each specializing in a distinct industry. Key subsidiaries include CNA Financial Corporation, which offers a broad range of insurance products; Boardwalk Pipeline Partners, which is involved in the transportation and storage of natural gas and liquids; Loews Hotels, which manages a portfolio of luxury hotels and resorts; and Altium Packaging, which provides packaging solutions across North America.
How the Company Makes MoneyLoews Corporation generates revenue primarily through its subsidiaries, each contributing to the company's financial performance in different ways. CNA Financial Corporation, as an insurance entity, earns money through underwriting premiums and investment income from its portfolio. Boardwalk Pipeline Partners generates revenue through the fees it charges for the transportation and storage of natural gas and other related services. Loews Hotels derives income from the hospitality sector through hotel room bookings, food and beverage sales, and other guest services. Altium Packaging contributes by manufacturing and selling a range of packaging products. The company's diversified business model allows it to mitigate risks and capitalize on growth opportunities across various industries.
Loews Financial Statement Overview
Summary
Loews demonstrates financial stability with consistent profitability and strong equity management. However, revenue contraction and asset base reduction are concerns. Cash flows are positive, but recent data gaps prevent a full assessment. The company's financials suggest a cautious but stable outlook in the insurance industry.Income Statement
Loews has shown resilience with a stable gross profit margin as revenue remained consistent over the years. Despite a dip in revenue in 2024, net profit margin and EBIT margin have been stable, indicating efficient cost management. However, revenue growth is a concern with a negative trend observed recently, and EBIT has been volatile, impacting profitability.62
Positive
Balance Sheet
The debt-to-equity ratio is reasonable, indicating manageable leverage levels. Stockholders' equity has grown, improving the equity ratio, which suggests a stable financial footing. Return on equity has been solid, reflecting efficient use of equity to generate profits. However, the decline in total assets in recent years could pose a risk to future growth.75
Positive
Cash Flow
Operating cash flow remains strong, exceeding net income consistently, which is positive for liquidity. Free cash flow has shown growth, though with fluctuations, indicating potential volatility in cash generation. The absence of recent free cash flow data limits the analysis of current cash flow health.58
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 14.60B | 15.68B | 14.04B | 14.12B | 13.79B | Gross Profit |
| 14.60B | 15.68B | 14.04B | 14.12B | 13.79B | EBIT |
| 0.00 | 2.21B | 652.00M | -1.51B | -5.29B | EBITDA |
| 0.00 | 3.99B | 3.06B | 4.21B | -215.00M | Net Income Common Stockholders |
| 1.41B | 1.43B | 822.00M | 1.56B | -1.29B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.90B | 399.00M | 43.01B | 49.85B | 49.76B | Total Assets |
| 81.94B | 79.20B | 75.49B | 81.63B | 80.24B | Total Debt |
| 8.94B | 9.00B | 9.02B | 9.08B | 10.11B | Net Debt |
| 8.40B | 8.60B | 8.49B | 8.46B | 9.63B | Total Liabilities |
| 64.01B | 62.67B | 60.02B | 62.45B | 61.05B | Stockholders Equity |
| 19.11B | 15.70B | 14.60B | 17.85B | 17.86B |
| Cash Flow | Free Cash Flow | |||
| 2.39B | 3.22B | 2.65B | 2.14B | 1.03B | Operating Cash Flow |
| 3.02B | 3.91B | 3.31B | 2.62B | 1.75B | Investing Cash Flow |
| 0.00 | -2.75B | -2.35B | -1.19B | -1.41B | Financing Cash Flow |
| -898.00M | -1.30B | -1.04B | -1.29B | -198.00M |
Loews Technical Analysis
Positive
85.34
Price Trends
84.48
Positive
83.48
Positive
80.42
Positive
Market Momentum
0.26
Negative
51.06
Neutral
78.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For L, the sentiment is Positive. The current price of 85.34 is above the 20-day moving average (MA) of 84.82, above the 50-day MA of 84.48, and above the 200-day MA of 80.42, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 51.06 is Neutral, neither overbought nor oversold. The STOCH value of 78.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for L.
Loews Risk Analysis
Loews disclosed 63 risk factors in its most recent earnings report. Loews reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Loews Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $33.38B | 11.30 | 18.92% | 1.65% | 8.19% | 29.77% | |
75 Outperform | $57.97B | 11.91 | 17.94% | 1.62% | 12.23% | 68.50% | |
75 Outperform | $13.77B | 8.24 | 16.23% | 2.08% | 4.03% | 45.42% | |
71 Outperform | $47.38B | 15.77 | 7.10% | 1.95% | -28.56% | 1.14% | |
67 Neutral | $6.11B | 1.95 | 39.61% | 5.02% | 47.95% | ― | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
60 Neutral | $18.11B | 13.27 | 7.40% | 0.29% | 10.44% | 1.63% |
* Financial Sector Average
Performance Comparison
L
Loews
85.34
10.10
13.42%
AIG
American International Group
81.31
8.03
10.96%
HIG
Hartford Financial
117.72
21.92
22.88%
LNC
Lincoln National
36.46
11.17
44.17%
TRV
Travelers Companies
258.03
41.35
19.08%
UNM
Unum Group
81.26
32.02
65.03%
Loews Earnings Call Summary
Earnings Call Date: Feb 10, 2025 | % Change Since: -1.58% | Next Earnings Date: May 5, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant revenue and market share growth, supported by strategic expansions and digital sales gains. However, there were challenges such as decreased GAAP net earnings due to a non-cash charge, impacts from the Canada Post strike, vendor price increases, currency fluctuations, and a strategic exit from the electronics category. Overall, the positives slightly outweigh the negatives, indicating a positive sentiment.Highlights
Record Revenue and Earnings Growth
Loblaws reported full-year revenue of $61 billion and adjusted earnings of over $2.6 billion. Adjusted diluted net earnings per share grew by 10% to $2.20.
Expansion and Investment Plan
Loblaws plans to reinvest over $10 billion into the Canadian economy over the next five years, including opening another 80 stores and approximately 100 pharmacist care clinics in 2025.
Market Share and Sales Growth
Loblaws reported its best full-year food market share growth in more than a decade, with absolute sales growth of 3.7% and same-store sales increasing by 2.5%.
Strong Digital Sales Performance
Online sales increased by 18.4% in the quarter, with full-year sales growing by 16.9% to $3.9 billion.
Successful New Store Openings
Loblaws opened 26 new grocery stores in Q4, including its first TNT supermarket in Seattle, Washington, and concluded its network optimization initiative in Quebec.
Lowlights
GAAP Net Earnings Decreased
GAAP net earnings decreased by 14.6%, primarily due to a non-cash charge of $129 million related to the revaluation of the PC Optimum program liability.
Impact of Canada Post Strike
The Canada Post strike led to a decline in convenience category sales, including a 3.1% decrease in front-store same-store sales.
Pressure from Vendor Price Increases and Currency Fluctuations
Loblaws faced higher than normal pricing increases from global vendors and inflationary pressure due to the Canadian dollar trading at its lowest level in over 20 years.
Exit from Electronics Category
Loblaws decided to exit certain low-margin electronics categories, which is expected to impact front-store sales by about 1% in 2025.
Company Guidance
In the fourth quarter of 2024, Loblaws Incorporated reported strong financial performance, with full-year revenue reaching $61 billion and adjusted earnings surpassing $2.6 billion. The company achieved a 2.9% increase in consolidated revenue for the quarter, totaling $14.9 billion, while adjusted EBITDA grew by 4%. Adjusted diluted net earnings per share rose by 10% to $2.20, although GAAP net earnings decreased by 14.6% due to a $129 million non-cash charge related to the PC Optimum program. Loblaws repurchased $1.8 billion worth of shares and increased its dividend per share by 13.9%. The company also expanded its retail footprint by adding 52 new food and drug retail stores and 78 pharmacy care clinics, representing a 1.1% increase in square footage. Looking ahead, Loblaws plans to invest over $10 billion in the Canadian economy over the next five years, including opening 80 new stores and approximately 100 pharmacist care clinics in 2025. Despite challenges such as inflationary pressures and a declining Canadian dollar, the company anticipates high single-digit growth in adjusted earnings per share for 2025, bolstered by an additional fiscal week and continued investment in its retail and distribution networks.Loews Corporate Events
Executive/Board Changes
Loews Announces New CEO Compensation Package
Neutral
Feb 18, 2025
On February 17, 2025, Loews Corporation announced a new compensation package for Benjamin J. Tisch, who was appointed President and CEO effective January 1, 2025. His package includes an annual base salary of $1,000,000, a target cash incentive of $2,600,000, and performance-based restricted stock units valued at $900,000 for the year 2025. Additionally, the Compensation Committee approved special stock appreciation rights (SARs) for key executives, including Tisch, Alexander H. Tisch, and Jane J. Wang, to incentivize shareholder value creation. These SARs, not part of regular compensation, have a 10-year term and will vest based on stock price performance, aiming to retain and motivate the executives.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.