Loews Corp Bonds

L -  USA Stock  

USD 53.97  0.40  0.75%

Loews Corp's financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. Loews Corp's financial risk is the risk to Loews Corp stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Additionally, see the analysis of Loews Corp Fundamentals Over Time.

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Loews Corp Total Debt is relatively stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 11.34 Billion. Issuance Repayment of Debt Securities is expected to hike to about 1 B this year, although the value of Long Term Debt will most likely fall to nearly 9.6 B.

Loews Current Financial Burden

Loews Corp's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Loews Corp's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Loews Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Loews Corp's stakeholders.

Asset vs Debt

Equity vs Debt

Given that Loews Corp's debt-to-equity ratio measures a company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Loews Corp is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Loews Corp to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Loews Corp is said to be less leveraged. If creditors hold a majority of Loews Corp's assets, the company is said to be highly leveraged.

Loews Corp Quarterly Debt to Equity Ratio

3.559Share
Given the importance of Loews Corp's capital structure, the first step in the capital decision process is for the management of Loews Corp to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Loews Corp to issue bonds at a reasonable cost.

Loews Corp Bond Ratings

Loews Corp bond ratings play a critical role in determining how much Loews Corp have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Loews Corp's borrowing costs.
Overall Bond Rating
Very Firm
Average S&P Rating
A+
Piotroski F Score
4  Poor
Beneish M Score

Loews Corp Debt to Cash Allocation

As Loews Corp follows its natural business cycle, the capital allocation decisions will not magically go away. Loews Corp's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors. Many companies eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
The company has accumulated 9.14 B in total debt with debt to equity ratio (D/E) of 0.49, which looks OK as compared to the sector. Loews Corp has a current ratio of 0.49, which means it has a negative working capital and may have difficulties to pay out interest payments when they become due.

Loews Corp Long Term Debt Over Time

Loews Corp Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Loews Corp uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.

Loews Corp Debt Ratio

    
  12.95   
It appears without question that most of the Loews Corp's assets are financed through equity. Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Loews Corp's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Loews Corp, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a Loews Corp debt ratio should be compared their industry average or other competing firms.
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Loews Corp Corporate Bonds Issued

Loews Corp issues bonds to finance its operations. Corporate bonds make up one of the most significant components of the U.S. bond market and are considered the world's largest securities market. Loews Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Loews bonds can be classified according to their maturity, which is the date when Loews Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Issue DateMaturityCouponRef Coupon  Rating
LOEWS CORP 601/27/200502/01/20356.05.375
A+
LOEWS CORP 262505/07/201305/15/20232.6252.25
A+
LOEWS CORP 412505/07/201305/15/20434.1253.0
A+

Loews Corp Historical Liabilities

While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of Loews Corp, understanding its historical liability is critical in projecting Loews Corp's future earnings, especially during periods of low and high inflation and deflation. Many analysts look at the trend in assets and liabilities and evaluate how Loews Corp uses its financing power over time.

Understaning Loews Corp Use of Financial Leverage

Loews Corp financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Loews Corp's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Loews Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Loews Corp debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it.
Please read more on our technical analysis page.
Last ReportedProjected for 2021
Long Term Debt10.1 B9.6 B
Total Debt10.1 B11.3 B
Issuance Repayment of Debt Securities933 MB
Debt to Equity Ratio 3.42  3.54 
Loews Corporation provides commercial property and casualty insurance in the United States and internationally. Loews Corporation was incorporated in 1969 and is headquartered in New York, New York. Loews Corp operates under InsuranceProperty Casualty classification in the United States and is traded on New York Stock Exchange. It employs 12200 people.

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Additionally, see the analysis of Loews Corp Fundamentals Over Time. Note that the Loews Corp information on this page should be used as a complementary analysis to other Loews Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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The market value of Loews Corp is measured differently than its book value, which is the value of Loews that is recorded on the company's balance sheet. Investors also form their own opinion of Loews Corp's value that differs from its market value or its book value, called intrinsic value, which is Loews Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Loews Corp's market value can be influenced by many factors that don't directly affect Loews Corp underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Loews Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Loews Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Loews Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.