CHUBB LTD (CB) Stock Fundamental Analysis
NYSE:CB - New York Stock Exchange, Inc. - CH0044328745 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CB. CB was compared to 144 industry peers in the Insurance industry. CB has an average financial health and profitability rating. CB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CB had positive earnings in the past year.
In the past year CB had a positive cash flow from operations.
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
With a decent Return On Assets value of 3.36%, CB is doing good in the industry, outperforming 73.61% of the companies in the same industry.
The Return On Equity of CB (12.87%) is better than 63.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.85%, CB is in the better half of the industry, outperforming 74.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CB is in line with the industry average of 4.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 12.87% | ||
| ROIC | 3.85% |
ROA(3y)3.45%
ROA(5y)3.29%
ROE(3y)13.39%
ROE(5y)12.08%
ROIC(3y)3.87%
ROIC(5y)3.5%
1.3 Margins
Looking at the Profit Margin, with a value of 15.05%, CB is in the better half of the industry, outperforming 79.86% of the companies in the same industry.
In the last couple of years the Profit Margin of CB has grown nicely.
CB has a better Operating Margin (18.58%) than 77.78% of its industry peers.
CB's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.58% | ||
| PM (TTM) | 15.05% | ||
| GM | N/A |
OM growth 3Y1.6%
OM growth 5Y5.71%
PM growth 3Y-7.25%
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.
The number of shares outstanding for CB has been reduced compared to 1 year ago.
The number of shares outstanding for CB has been reduced compared to 5 years ago.
CB has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of CB is 1.03, which is an excellent value as it means it would take CB, only 1.03 years of fcf income to pay off all of its debts.
CB's Debt to FCF ratio of 1.03 is fine compared to the rest of the industry. CB outperforms 63.89% of its industry peers.
CB has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
CB has a Debt to Equity ratio of 0.23. This is in the better half of the industry: CB outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | N/A |
ROIC/WACC0.81
WACC4.74%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
CB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.10%.
CB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.36% yearly.
The Revenue has grown by 9.00% in the past year. This is quite good.
The Revenue has been growing by 10.24% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.1%
EPS 3Y21.41%
EPS 5Y17.36%
EPS Q2Q%-31.98%
Revenue 1Y (TTM)9%
Revenue growth 3Y10.82%
Revenue growth 5Y10.24%
Sales Q2Q%3.19%
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 3.12% on average per year.
Based on estimates for the next years, CB will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
EPS Next Y-2.12%
EPS Next 2Y8.02%
EPS Next 3Y8.4%
EPS Next 5Y3.12%
Revenue Next Year4.89%
Revenue Next 2Y5.46%
Revenue Next 3Y4.87%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.93 indicates a correct valuation of CB.
CB's Price/Earnings ratio is in line with the industry average.
CB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.15.
Based on the Price/Forward Earnings ratio of 11.02, the valuation of CB can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as CB.
CB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 11.02 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as CB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.99 | ||
| EV/EBITDA | 11.79 |
4.3 Compensation for Growth
The decent profitability rating of CB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y8.02%
EPS Next 3Y8.4%
5. Dividend
5.1 Amount
CB has a Yearly Dividend Yield of 1.37%.
Compared to an average industry Dividend Yield of 3.51, CB has a dividend in line with its industry peers.
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 | 1.37% |
5.2 History
The dividend of CB has a limited annual growth rate of 3.69%.
CB has been paying a dividend for at least 10 years, so it has a reliable track record.
As CB did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)3.69%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
17.17% of the earnings are spent on dividend by CB. This is a low number and sustainable payout ratio.
CB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.17%
EPS Next 2Y8.02%
EPS Next 3Y8.4%
289.72
+4.6 (+1.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.59%
Inst Owner Change0.44%
Ins Owners0.59%
Ins Owner Change-3.52%
Market Cap116.10B
Analysts73.55
Price Target312.3 (7.79%)
Short Float %0.79%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend3.56
Dividend Growth(5Y)3.69%
DP17.17%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.9%
Min EPS beat(2)7.46%
Max EPS beat(2)12.34%
EPS beat(4)4
Avg EPS beat(4)8.16%
Min EPS beat(4)1.42%
Max EPS beat(4)12.34%
EPS beat(8)7
Avg EPS beat(8)6.64%
EPS beat(12)9
Avg EPS beat(12)6.08%
EPS beat(16)13
Avg EPS beat(16)7.98%
Revenue beat(2)0
Avg Revenue beat(2)-5.65%
Min Revenue beat(2)-5.86%
Max Revenue beat(2)-5.44%
Revenue beat(4)0
Avg Revenue beat(4)-4.51%
Min Revenue beat(4)-5.86%
Max Revenue beat(4)-1.76%
Revenue beat(8)0
Avg Revenue beat(8)-3.01%
Revenue beat(12)3
Avg Revenue beat(12)1.38%
Revenue beat(16)7
Avg Revenue beat(16)4.4%
PT rev (1m)0.66%
PT rev (3m)1.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.74%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)1.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 11.02 | ||
| P/S | 2.07 | ||
| P/FCF | 7.99 | ||
| P/OCF | 7.99 | ||
| P/B | 1.77 | ||
| P/tB | 2.93 | ||
| EV/EBITDA | 11.79 |
EPS(TTM)20.8
EY7.18%
EPS(NY)26.29
Fwd EY9.07%
FCF(TTM)36.25
FCFY12.51%
OCF(TTM)36.25
OCFY12.51%
SpS140.27
BVpS164.02
TBVpS98.94
PEG (NY)N/A
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 12.87% | ||
| ROCE | 4.31% | ||
| ROIC | 3.85% | ||
| ROICexc | 3.89% | ||
| ROICexgc | 5.49% | ||
| OM | 18.58% | ||
| PM (TTM) | 15.05% | ||
| GM | N/A | ||
| FCFM | 25.85% |
ROA(3y)3.45%
ROA(5y)3.29%
ROE(3y)13.39%
ROE(5y)12.08%
ROIC(3y)3.87%
ROIC(5y)3.5%
ROICexc(3y)3.91%
ROICexc(5y)3.54%
ROICexgc(3y)5.62%
ROICexgc(5y)5.08%
ROCE(3y)4.34%
ROCE(5y)3.93%
ROICexcg growth 3Y1.22%
ROICexcg growth 5Y7.14%
ROICexc growth 3Y2.45%
ROICexc growth 5Y7.69%
OM growth 3Y1.6%
OM growth 5Y5.71%
PM growth 3Y-7.25%
PM growth 5Y5.04%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.03 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 16.5 | ||
| Cash Conversion | 134.99% | ||
| Profit Quality | 171.73% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC4.74%
ROIC/WACC0.81
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)175.35%
Profit Quality(5y)186.72%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.1%
EPS 3Y21.41%
EPS 5Y17.36%
EPS Q2Q%-31.98%
EPS Next Y-2.12%
EPS Next 2Y8.02%
EPS Next 3Y8.4%
EPS Next 5Y3.12%
Revenue 1Y (TTM)9%
Revenue growth 3Y10.82%
Revenue growth 5Y10.24%
Sales Q2Q%3.19%
Revenue Next Year4.89%
Revenue Next 2Y5.46%
Revenue Next 3Y4.87%
Revenue Next 5YN/A
EBIT growth 1Y4.89%
EBIT growth 3Y12.59%
EBIT growth 5Y16.53%
EBIT Next Year11.22%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.43%
FCF growth 3Y13.22%
FCF growth 5Y20.6%
OCF growth 1Y31.43%
OCF growth 3Y13.22%
OCF growth 5Y20.6%