Loews Experiences Decline in Profit Margin and Earnings Growth, But Remains Valued Attractively Versus Peers

Loews' net profit margin dropped to 7.5%, down from 9.1% a year ago, pressuring the company's profitability. Despite a 32% annual earnings growth over the past five years, the recent margin setback and negative earnings growth may influence the market's perception of the company. Loews' shares trade above fair value estimates and the price-to-earnings ratio of 15.3x is lower than the peer group average but higher than the broader US insurance industry's 13.4x.