CHUBB LTD (CB)
CH0044328745 - Common Stock
We assign a fundamental rating of 5 out of 10 to CB. CB was compared to 141 industry peers in the Insurance industry. CB has an excellent profitability rating, but there are some minor concerns on its financial health. CB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CB was profitable.
In the past year CB had a positive cash flow from operations.
In the past 5 years CB has always been profitable.
CB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CB's Return On Assets of 3.99% is fine compared to the rest of the industry. CB outperforms 73.57% of its industry peers.
CB has a Return On Equity of 15.20%. This is in the better half of the industry: CB outperforms 64.29% of its industry peers.
CB has a Return On Invested Capital of 3.95%. This is in the better half of the industry: CB outperforms 72.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CB is in line with the industry average of 4.38%.
The 3 year average ROIC (3.70%) for CB is below the current ROIC(3.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 15.2% | ||
| ROIC | 3.95% |
ROA(3y)3.62%
ROA(5y)3.04%
ROE(3y)13.33%
ROE(5y)10.8%
ROIC(3y)3.7%
ROIC(5y)3.18%
1.3 Margins
CB's Profit Margin of 18.32% is amongst the best of the industry. CB outperforms 81.43% of its industry peers.
CB's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 19.93%, CB is doing good in the industry, outperforming 79.29% of the companies in the same industry.
In the last couple of years the Operating Margin of CB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.93% | ||
| PM (TTM) | 18.32% | ||
| GM | N/A |
OM growth 3Y23.23%
OM growth 5Y4.69%
PM growth 3Y22.75%
PM growth 5Y8.46%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CB is destroying value.
The number of shares outstanding for CB has been reduced compared to 1 year ago.
CB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CB has been reduced compared to a year ago.
2.2 Solvency
CB has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
CB's Debt to FCF ratio of 1.11 is fine compared to the rest of the industry. CB outperforms 65.00% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that CB is not too dependend on debt financing.
CB's Debt to Equity ratio of 0.25 is fine compared to the rest of the industry. CB outperforms 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | N/A |
ROIC/WACC0.84
WACC4.73%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
CB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.18%, which is quite impressive.
Measured over the past years, CB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.97% on average per year.
Looking at the last year, CB shows a quite strong growth in Revenue. The Revenue has grown by 15.22% in the last year.
The Revenue has been growing by 8.70% on average over the past years. This is quite good.
EPS 1Y (TTM)25.18%
EPS 3Y39.51%
EPS 5Y15.97%
EPS Q2Q%49.82%
Revenue 1Y (TTM)15.22%
Revenue growth 3Y11.38%
Revenue growth 5Y8.7%
Sales Q2Q%N/A
3.2 Future
Based on estimates for the next years, CB will show a small growth in Earnings Per Share. The EPS will grow by 3.54% on average per year.
CB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.06% yearly.
EPS Next Y13.67%
EPS Next 2Y10.94%
EPS Next 3Y9.85%
EPS Next 5Y3.54%
Revenue Next Year8.21%
Revenue Next 2Y7.42%
Revenue Next 3Y7.46%
Revenue Next 5Y5.06%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.15, the valuation of CB can be described as very reasonable.
The rest of the industry has a similar Price/Earnings ratio as CB.
CB is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.34 indicates a reasonable valuation of CB.
The rest of the industry has a similar Price/Forward Earnings ratio as CB.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, CB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.15 | ||
| Fwd PE | 11.34 |
4.2 Price Multiples
CB's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.53 | ||
| EV/EBITDA | 11.05 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.82
PEG (5Y)0.7
EPS Next 2Y10.94%
EPS Next 3Y9.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.33%, CB has a reasonable but not impressive dividend return.
CB's Dividend Yield is comparable with the industry average which is at 4.35.
Compared to an average S&P500 Dividend Yield of 2.36, CB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of CB has a limited annual growth rate of 3.25%.
CB has been paying a dividend for at least 10 years, so it has a reliable track record.
CB has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)3.25%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
14.19% of the earnings are spent on dividend by CB. This is a low number and sustainable payout ratio.
The dividend of CB is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP14.19%
EPS Next 2Y10.94%
EPS Next 3Y9.85%
CHUBB LTD
NYSE:CB (12/24/2024, 8:00:21 PM)
After market: 276.54 0 (0%)276.54
+1.16 (+0.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.54%
Inst Owner Change-0.55%
Ins Owners0.6%
Ins Owner Change-3.51%
Market Cap111.47B
Analysts74.38
Price Target307.63 (11.24%)
Short Float %0.76%
Short Ratio1.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Dividend Growth(5Y)3.25%
DP14.19%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.42%
Min EPS beat(2)1.42%
Max EPS beat(2)11.41%
EPS beat(4)3
Avg EPS beat(4)4.21%
Min EPS beat(4)-0.99%
Max EPS beat(4)11.41%
EPS beat(8)5
Avg EPS beat(8)2.75%
EPS beat(12)9
Avg EPS beat(12)6.02%
EPS beat(16)12
Avg EPS beat(16)7.23%
Revenue beat(2)0
Avg Revenue beat(2)-3.36%
Min Revenue beat(2)-4.97%
Max Revenue beat(2)-1.76%
Revenue beat(4)0
Avg Revenue beat(4)-1.91%
Min Revenue beat(4)-4.97%
Max Revenue beat(4)-0.09%
Revenue beat(8)2
Avg Revenue beat(8)2.69%
Revenue beat(12)5
Avg Revenue beat(12)4.54%
Revenue beat(16)9
Avg Revenue beat(16)8.15%
PT rev (1m)2.17%
PT rev (3m)7.94%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-7.49%
EPS NY rev (1m)0.42%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.15 | ||
| Fwd PE | 11.34 | ||
| P/S | 2.04 | ||
| P/FCF | 7.53 | ||
| P/OCF | 7.53 | ||
| P/B | 1.7 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 11.05 |
EPS(TTM)24.81
EY8.97%
EPS(NY)24.4
Fwd EY8.82%
FCF(TTM)36.72
FCFY13.28%
OCF(TTM)36.72
OCFY13.28%
SpS135.38
BVpS163.13
TBVpS97.18
PEG (NY)0.82
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 15.2% | ||
| ROCE | 4.53% | ||
| ROIC | 3.95% | ||
| ROICexc | 3.99% | ||
| ROICexgc | 5.66% | ||
| OM | 19.93% | ||
| PM (TTM) | 18.32% | ||
| GM | N/A | ||
| FCFM | 27.13% |
ROA(3y)3.62%
ROA(5y)3.04%
ROE(3y)13.33%
ROE(5y)10.8%
ROIC(3y)3.7%
ROIC(5y)3.18%
ROICexc(3y)3.74%
ROICexc(5y)3.21%
ROICexgc(3y)5.45%
ROICexgc(5y)4.64%
ROCE(3y)4.24%
ROCE(5y)3.64%
ROICexcg growth 3Y25.86%
ROICexcg growth 5Y4.63%
ROICexc growth 3Y25.57%
ROICexc growth 5Y5.38%
OM growth 3Y23.23%
OM growth 5Y4.69%
PM growth 3Y22.75%
PM growth 5Y8.46%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 17.46 | ||
| Cash Conversion | 132.15% | ||
| Profit Quality | 148.07% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC4.73%
ROIC/WACC0.84
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)160.7%
Profit Quality(5y)180.29%
High Growth Momentum
Growth
EPS 1Y (TTM)25.18%
EPS 3Y39.51%
EPS 5Y15.97%
EPS Q2Q%49.82%
EPS Next Y13.67%
EPS Next 2Y10.94%
EPS Next 3Y9.85%
EPS Next 5Y3.54%
Revenue 1Y (TTM)15.22%
Revenue growth 3Y11.38%
Revenue growth 5Y8.7%
Sales Q2Q%N/A
Revenue Next Year8.21%
Revenue Next 2Y7.42%
Revenue Next 3Y7.46%
Revenue Next 5Y5.06%
EBIT growth 1Y23.07%
EBIT growth 3Y37.25%
EBIT growth 5Y13.8%
EBIT Next Year26.23%
EBIT Next 3Y10.9%
EBIT Next 5YN/A
FCF growth 1Y32.26%
FCF growth 3Y8.89%
FCF growth 5Y18.18%
OCF growth 1Y32.26%
OCF growth 3Y8.89%
OCF growth 5Y18.18%