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1. Company Snapshot

1.a. Company Description

Loews Corporation provides commercial property and casualty insurance in the United States and internationally.The company offers specialty insurance products, such as management and professional liability, and other coverage products; surety and fidelity bonds; property insurance products that include property, marine and boiler, and machinery coverages; and casualty insurance products, such as workers' compensation, general and product liability, and commercial auto and umbrella coverages.It also provides loss-sensitive insurance programs; and warranty, risk management, information, and claims administration services.


The company markets its insurance products and services through independent agents, brokers, and managing general underwriters.In addition, the company is involved in the transportation and storage of natural gas and natural gas liquids(NGLs), and hydrocarbons through natural gas pipelines covering approximately 13,615 miles of interconnected pipelines; 450 miles of NGL pipelines in Louisiana and Texas; 14 underground storage fields with an aggregate gas capacity of approximately 213 billion cubic feet of natural gas; and eleven salt dome caverns and related brine infrastructure for providing brine supply services.Further, the company operates a chain of 26 hotels; and develops, manufactures, and markets a range of extrusion blow-molded and injection molded plastic containers for customers in the pharmaceutical, dairy, household chemicals, food/nutraceuticals, industrial/specialty chemicals, and water and beverage/juice segments, as well as manufactures commodity and differentiated plastic resins from recycled plastic materials.


Loews Corporation was incorporated in 1969 and is headquartered in New York, New York.

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1.b. Last Insights on L

Loews Corporation's recent performance was driven by a strong Q2 earnings report, with EPS jumping 12% year-over-year to $1.87 per share. The company's net income reached $391 million, surpassing Q2 2024 results. A quarterly dividend of $0.0625 per share was declared, payable in September. The company's diversified businesses, including insurance, energy, and hospitality, likely contributed to its solid financials. Additionally, the election of Jennifer VanBelle to its Board of Directors brings new expertise, potentially enhancing strategic decision-making.

1.c. Company Highlights

2. Loblaw Companies Limited's Q4 and Fiscal Year 2024 Earnings Report

Loblaw Companies Limited reported its fourth-quarter and fiscal year 2024 results, with revenue reaching $61 billion and adjusted earnings of more than $2.6 billion. The company delivered consistent operational and financial performance, driven by its focus on retail excellence. In the quarter, revenue grew 2.9% to $14.9 billion, with adjusted EBITDA increasing 4%. Food retail attracted higher customer traffic and drove tonnage growth, with absolute sales growing 3.7% and same-store sales increasing 2.5%. The company's e-commerce sales increased 18.4% in the quarter, with food delivery continuing to outperform as a channel.

Publication Date: Feb -22

📋 Highlights
  • Revenue Growth: Revenue grew 2.9% to $14.9 billion, with adjusted EBITDA increasing 4%, driven by focus on retail excellence.
  • Strong Performance in Hard Discount Stores: Absolute sales grew 13.9% and same-store sales by 11.1%, with plans to open approximately 50 new hard discount stores in 2025.
  • E-commerce Growth: E-commerce sales increased 18.4%, with food delivery continuing to outperform as a channel, contributing to overall revenue growth.
  • Investment in Canadian Economy: The company plans to reinvest over $10 billion in the Canadian economy over the next five years, improving access to affordable food and healthcare services and creating jobs.
  • Dividend Increase and Share Buyback: The board of directors has declared a 13.9% increase in the quarterly dividend per share and authorized a share buyback program of up to $2.5 billion, demonstrating confidence in the company's future performance.

Strong Performance Across Businesses

The company saw growing momentum across its businesses, with strong performance in its hard discount stores, which grew absolute sales by 13.9% and same-store sales by 11.1%. Pharmacy and healthcare services also grew same-store sales by 6.3%, driven by broad strength in prescription and new healthcare services. As Perbank noted, "We're excited and optimistic entering the new year. Our portfolio of businesses remains strong and well-positioned to deliver for Canadians."

Investment Plans and ESG Initiatives

The company plans to reinvest over $10 billion in the Canadian economy over the next five years, improving access to affordable food and healthcare services and creating jobs in communities across Canada. In 2025, it plans to open approximately 50 hard discount stores, 30 Shoppers Drug Mart, and two TNT stores, and will begin migrating operations to its new 1.2 million square foot fully automated distribution center in East Gwillimbury, Ontario. Perbank highlighted the company's commitment to ESG principles, noting that the new distribution center will be equipped with a massive array of solar panels, expected to be the largest rooftop solar array in Canada.

Guidance and Valuation

The company expects to deliver high single-digit adjusted earnings per share growth in 2025, excluding the benefit of an extra week. With a current PE ratio of 12.89 and a price-to-sales ratio of 1.29, the market seems to be pricing in a moderate growth trajectory for the company. The dividend yield of 0.23% and free cash flow yield of 16.38% suggest that the company is committed to returning value to shareholders. As the company continues to execute on its strategy, investors will be watching closely to see if it can deliver on its growth promises.

3. NewsRoom

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Loews Corporation $L Shares Sold by Boston Partners

Nov -27

Source: defenseworld.net

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Loews (NYSE:L) Shares Unloaded Rep. Lisa C. McClain

Nov -27

Source: defenseworld.net

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Creative Planning Raises Holdings in Loews Corporation $L

Nov -25

Source: defenseworld.net

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Stop Sleeping on These 3 Stocks (Seriously)

Nov -19

Source: fool.com

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LOEWS CORPORATION ANNOUNCES QUARTERLY DIVIDEND ON COMMON STOCK

Nov -11

Source: prnewswire.com

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Spire Wealth Management Sells 3,615 Shares of Loews Corporation $L

Nov -06

Source: defenseworld.net

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Loews Corporation Elects Dino Robusto to Its Board of Directors

Nov -03

Source: prnewswire.com

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LOEWS CORPORATION REPORTS NET INCOME OF $504 MILLION FOR THE THIRD QUARTER OF 2025

Nov -03

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

CNA Financial

Expected Growth: 4.5%

CNA Financial's growth is driven by increasing demand for commercial property and casualty insurance, expansion into new markets, and strategic partnerships. Additionally, the company's strong underwriting discipline and risk management capabilities will contribute to its growth.

Boardwalk Pipelines

Expected Growth: 4.5%

Increasing demand for natural gas, expansion of pipeline infrastructure, and growing production of shale gas are expected to drive the growth of Boardwalk Pipelines. Additionally, the company's strategic location and diversified customer base are likely to contribute to its growth.

Loews Hotels & Co

Expected Growth: 4.5%

Growing demand for luxury travel, increasing disposable income, and expansion into new iconic destinations drive Loews Hotels & Co's growth, with a focus on exceptional service and upscale accommodations.

Corporate Segment

Expected Growth: 4.5%

Loews Corporation's Corporate segment is expected to grow driven by strategic investments, cash management, and overhead cost optimization. The company's diversified investments and strong cash position will support growth, while efficient headquarters' operations will reduce overhead costs.

7. Detailed Products

CNA Insurance

CNA is a leading provider of commercial property and casualty insurance products to businesses and professionals.

Diamond Offshore Drilling

Diamond Offshore Drilling is a leading deepwater drilling contractor, providing drilling services to the oil and gas industry.

Boardwalk Pipeline Partners

Boardwalk Pipeline Partners is a midstream energy company that provides transportation and storage services for natural gas and liquids.

Loews Hotels & Resorts

Loews Hotels & Resorts is a luxury hospitality company that operates a chain of upscale hotels and resorts.

8. Loews Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Loews Corporation operates in the hospitality industry, which has a moderate threat of substitutes. While there are alternative accommodations available, such as Airbnb, Loews' luxury hotels and resorts offer unique experiences that are difficult to replicate.

Bargaining Power Of Customers

Loews Corporation's customers have limited bargaining power due to the company's strong brand reputation and loyalty programs. Additionally, the luxury nature of Loews' hotels and resorts limits customers' ability to negotiate prices.

Bargaining Power Of Suppliers

Loews Corporation's suppliers, such as food and beverage providers, have some bargaining power due to the company's reliance on high-quality products. However, Loews' scale and reputation also give it some negotiating power.

Threat Of New Entrants

The threat of new entrants in the hospitality industry is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles. Loews Corporation's established brand and reputation also make it difficult for new entrants to compete.

Intensity Of Rivalry

The hospitality industry is highly competitive, with many established players competing for market share. Loews Corporation faces intense rivalry from other luxury hotel chains, which drives innovation and investment in customer experience.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.44%
Debt Cost 5.40%
Equity Weight 63.56%
Equity Cost 8.07%
WACC 7.09%
Leverage 57.33%

11. Quality Control: Loews Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
WR Berkley

A-Score: 7.0/10

Value: 5.3

Growth: 7.9

Quality: 6.5

Yield: 4.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Mercury General

A-Score: 6.8/10

Value: 7.3

Growth: 6.9

Quality: 6.6

Yield: 6.0

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Hanover Insurance

A-Score: 6.8/10

Value: 7.3

Growth: 4.8

Quality: 6.6

Yield: 4.0

Momentum: 8.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
RLI

A-Score: 6.5/10

Value: 6.0

Growth: 6.9

Quality: 8.2

Yield: 7.0

Momentum: 1.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Markel

A-Score: 6.4/10

Value: 7.0

Growth: 7.2

Quality: 7.1

Yield: 0.0

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Loews

A-Score: 6.1/10

Value: 6.2

Growth: 6.8

Quality: 5.3

Yield: 0.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

103.06$

Current Price

103.06$

Potential

-0.00%

Expected Cash-Flows