Net Margin - Loews Corp (NYSE:L)

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Price: 105.65 USD 0.95%

Market Cap: 21.8B USD

7.9%

Current

Average

8.3%

Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin

7.9%

Net Income

1.5B

Revenue

18.3B

Net Margin Across Competitors

Country		Company	Market Cap	Net Margin
US		Loews Corp NYSE:L	21.9B USD	8%
US		Progressive Corp NYSE:PGR	125.2B USD	13%
CH		Chubb Ltd NYSE:CB	124.3B USD	17%
JP		Tokio Marine Holdings Inc TSE:8766	11.3T JPY	13%
US		Travelers Companies Inc NYSE:TRV	64.7B USD	12%
CN		People's Insurance Company Group of China Ltd SSE:601319	417B CNY	9%
US		Allstate Corp NYSE:ALL	53.1B USD	12%
CN		PICC Property and Casualty Co Ltd HKEX:2328	377B HKD	7%
ZA	S	Santam Ltd JSE:SNT	47.1B Zac	8%
CA		Fairfax Financial Holdings Ltd TSX:FFH	59B CAD	11%
CA		Intact Financial Corp TSX:IFC	50.9B CAD	11%

Loews Corp
Glance View

Economic Moat

None

Market Cap

21.9B USD

Industry

Insurance

Loews Corporation, an intriguing tapestry in the world of diversified holding companies, is a master of adaptive resilience and strategic foresight. Founded in 1946 by the Tisch family, the company’s narrative is woven deeply into the fabric of American business acumen. Originally immersed in the theater and hotel businesses, Loews seamlessly transitioned into a powerful conglomerate, investing in industries that offer enduring value. Its core focus has shifted over the decades to a portfolio composed of insurance, energy, hospitality, and packaging. Central to its success is its ownership of a controlling interest in CNA Financial Corporation, a prominent commercial property and casualty insurance provider. This insurance segment serves as the bedrock of Loews’ financial stability, generating consistent and significant premiums that bolster its earning capabilities. The strategic foresight of its management team allows Loews to navigate market fluctuations, adapting its investment strategy to leverage opportunities across various economic cycles. Beyond insurance, Loews harnesses diversified revenue streams from its other subsidiaries, which play crucial roles in its overarching narrative. The company’s stake in Boardwalk Pipeline Partners gives it a robust foothold in natural gas transportation, essential for catering to a nation increasingly drawn toward cleaner energy resources. Meanwhile, its hospitality interest, embodied by Loews Hotels & Co., continues to evolve, tapping into the luxury and lifestyle experience segment by offering uniquely tailored guest services. Another feather in its cap is Altium Packaging, providing substantial input in the form of rigid plastic packaging solutions, capitalizing on the consumer goods sector's need for sustainable packaging options. The intricate interlacing of these ventures under the Loews umbrella weaves a narrative of calculated diversification, comprehensive risk management, and an unyielding quest for shareholder value, offering a lesson in balancing tradition with modernity and durability with innovation.

View L Analysis

L Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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Loews Corp
NYSE:L