CHUBB LTD (CB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CB - CH0044328745 - Common Stock
298.29 USD
+1.97 (+0.66%)
295.6 USD
-2.69 (-0.9%)
Overall CB gets a fundamental rating of 5 out of 10. We evaluated CB against 147 industry peers in the Insurance industry. While CB has a great profitability rating, there are some minor concerns on its financial health. CB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CB was profitable.
CB had a positive operating cash flow in the past year.
CB had positive earnings in each of the past 5 years.
Each year in the past 5 years CB had a positive operating cash flow.
1.2 Ratios
CB has a Return On Assets of 3.58%. This is in the better half of the industry: CB outperforms 71.43% of its industry peers.
Looking at the Return On Equity, with a value of 13.46%, CB is in line with its industry, outperforming 57.82% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.37%, CB is doing good in the industry, outperforming 76.19% of the companies in the same industry.
CB had an Average Return On Invested Capital over the past 3 years of 3.86%. This is in line with the industry average of 4.37%.
The last Return On Invested Capital (4.37%) for CB is above the 3 year average (3.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 13.46% | ||
| ROIC | 4.37% |
ROA(3y)3.44%
ROA(5y)3.28%
ROE(3y)13.35%
ROE(5y)12.05%
ROIC(3y)3.86%
ROIC(5y)3.49%
1.3 Margins
CB has a better Profit Margin (16.54%) than 82.31% of its industry peers.
In the last couple of years the Profit Margin of CB has grown nicely.
CB has a Operating Margin of 21.76%. This is amongst the best in the industry. CB outperforms 80.95% of its industry peers.
CB's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.76% | ||
| PM (TTM) | 16.54% | ||
| GM | N/A |
OM growth 3Y1.62%
OM growth 5Y5.71%
PM growth 3Y-7.27%
PM growth 5Y5.04%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CB is destroying value.
CB has less shares outstanding than it did 1 year ago.
CB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CB has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of CB is 1.32, which is an excellent value as it means it would take CB, only 1.32 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.32, CB is doing good in the industry, outperforming 62.59% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that CB is not too dependend on debt financing.
CB has a Debt to Equity ratio of 0.25. This is in the better half of the industry: CB outperforms 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | N/A |
ROIC/WACC0.91
WACC4.8%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
CB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.80%.
The Earnings Per Share has been growing by 17.36% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.22% in the past year.
CB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.24% yearly.
EPS 1Y (TTM)5.8%
EPS 3Y21.41%
EPS 5Y17.36%
EPS Q2Q%30.94%
Revenue 1Y (TTM)7.22%
Revenue growth 3Y10.91%
Revenue growth 5Y10.24%
Sales Q2Q%5.35%
3.2 Future
The Earnings Per Share is expected to grow by 2.81% on average over the next years.
The Revenue is expected to grow by 4.78% on average over the next years.
EPS Next Y8.38%
EPS Next 2Y9.67%
EPS Next 3Y9.45%
EPS Next 5Y2.81%
Revenue Next Year4.12%
Revenue Next 2Y4.64%
Revenue Next 3Y4.78%
Revenue Next 5YN/A
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
A Price/Earnings ratio of 12.79 indicates a correct valuation of CB.
CB's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CB to the average of the S&P500 Index (25.45), we can say CB is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.01, the valuation of CB can be described as very reasonable.
CB's Price/Forward Earnings is on the same level as the industry average.
CB is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 11.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CB is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.81 | ||
| EV/EBITDA | 10.05 |
4.3 Compensation for Growth
CB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)0.74
EPS Next 2Y9.67%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
CB has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
CB's Dividend Yield is comparable with the industry average which is at 3.43.
Compared to an average S&P500 Dividend Yield of 2.42, CB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of CB has a limited annual growth rate of 3.70%.
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)3.7%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
CB pays out 15.38% of its income as dividend. This is a sustainable payout ratio.
The dividend of CB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP15.38%
EPS Next 2Y9.67%
EPS Next 3Y9.45%
298.29
+1.97 (+0.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.21%
Inst Owner Change0.89%
Ins Owners0.59%
Ins Owner Change-2.11%
Market Cap117.39B
Revenue(TTM)58.51B
Net Income(TTM)9.68B
Analysts72.12
Price Target314.24 (5.35%)
Short Float %0.72%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend3.56
Dividend Growth(5Y)3.7%
DP15.38%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.01%
Min EPS beat(2)-0.21%
Max EPS beat(2)18.24%
EPS beat(4)3
Avg EPS beat(4)9.46%
Min EPS beat(4)-0.21%
Max EPS beat(4)18.24%
EPS beat(8)6
Avg EPS beat(8)6.83%
EPS beat(12)8
Avg EPS beat(12)4.99%
EPS beat(16)12
Avg EPS beat(16)6.88%
Revenue beat(2)0
Avg Revenue beat(2)-3.49%
Min Revenue beat(2)-4.32%
Max Revenue beat(2)-2.66%
Revenue beat(4)0
Avg Revenue beat(4)-4.57%
Min Revenue beat(4)-5.86%
Max Revenue beat(4)-2.66%
Revenue beat(8)0
Avg Revenue beat(8)-3.24%
Revenue beat(12)2
Avg Revenue beat(12)0.28%
Revenue beat(16)5
Avg Revenue beat(16)2.2%
PT rev (1m)2.75%
PT rev (3m)3.36%
EPS NQ rev (1m)0.93%
EPS NQ rev (3m)1.42%
EPS NY rev (1m)6.33%
EPS NY rev (3m)10.81%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 11.01 | ||
| P/S | 2.01 | ||
| P/FCF | 8.81 | ||
| P/OCF | 8.81 | ||
| P/B | 1.63 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 10.05 |
EPS(TTM)23.33
EY7.82%
EPS(NY)27.1
Fwd EY9.08%
FCF(TTM)33.85
FCFY11.35%
OCF(TTM)33.85
OCFY11.35%
SpS148.68
BVpS182.58
TBVpS115.11
PEG (NY)1.53
PEG (5Y)0.74
Graham Number309.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 13.46% | ||
| ROCE | 4.91% | ||
| ROIC | 4.37% | ||
| ROICexc | 4.41% | ||
| ROICexgc | 6.15% | ||
| OM | 21.76% | ||
| PM (TTM) | 16.54% | ||
| GM | N/A | ||
| FCFM | 22.77% |
ROA(3y)3.44%
ROA(5y)3.28%
ROE(3y)13.35%
ROE(5y)12.05%
ROIC(3y)3.86%
ROIC(5y)3.49%
ROICexc(3y)3.9%
ROICexc(5y)3.53%
ROICexgc(3y)5.6%
ROICexgc(5y)5.06%
ROCE(3y)4.33%
ROCE(5y)3.92%
ROICexgc growth 3Y1.27%
ROICexgc growth 5Y7.11%
ROICexc growth 3Y2.52%
ROICexc growth 5Y7.66%
OM growth 3Y1.62%
OM growth 5Y5.71%
PM growth 3Y-7.27%
PM growth 5Y5.04%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.32 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 19.96 | ||
| Cash Conversion | 102.15% | ||
| Profit Quality | 137.69% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC4.8%
ROIC/WACC0.91
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)176.35%
Profit Quality(5y)187.36%
High Growth Momentum
Growth
EPS 1Y (TTM)5.8%
EPS 3Y21.41%
EPS 5Y17.36%
EPS Q2Q%30.94%
EPS Next Y8.38%
EPS Next 2Y9.67%
EPS Next 3Y9.45%
EPS Next 5Y2.81%
Revenue 1Y (TTM)7.22%
Revenue growth 3Y10.91%
Revenue growth 5Y10.24%
Sales Q2Q%5.35%
Revenue Next Year4.12%
Revenue Next 2Y4.64%
Revenue Next 3Y4.78%
Revenue Next 5YN/A
EBIT growth 1Y17.08%
EBIT growth 3Y12.71%
EBIT growth 5Y16.53%
EBIT Next Year11.22%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y9.98%
FCF growth 3Y13.22%
FCF growth 5Y20.6%
OCF growth 1Y9.98%
OCF growth 3Y13.22%
OCF growth 5Y20.6%
CHUBB LTD / CB FAQ
Can you provide the ChartMill fundamental rating for CHUBB LTD?
ChartMill assigns a fundamental rating of 5 / 10 to CB.
What is the valuation status for CB stock?
ChartMill assigns a valuation rating of 4 / 10 to CHUBB LTD (CB). This can be considered as Fairly Valued.
Can you provide the profitability details for CHUBB LTD?
CHUBB LTD (CB) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for CB stock?
The Price/Earnings (PE) ratio for CHUBB LTD (CB) is 12.79 and the Price/Book (PB) ratio is 1.63.
What is the financial health of CHUBB LTD (CB) stock?
The financial health rating of CHUBB LTD (CB) is 4 / 10.