CHUBB LTD (CB) Stock Fundamental Analysis
NYSE:CB - New York Stock Exchange, Inc. - CH0044328745 - Common Stock - Currency: USD
Overall CB gets a fundamental rating of 5 out of 10. We evaluated CB against 143 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
CB had positive earnings in the past year.
CB had a positive operating cash flow in the past year.
Each year in the past 5 years CB has been profitable.
Each year in the past 5 years CB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CB (3.76%) is better than 73.43% of its industry peers.
The Return On Equity of CB (14.48%) is better than 60.14% of its industry peers.
The Return On Invested Capital of CB (4.28%) is better than 73.43% 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 4.52%.
The 3 year average ROIC (3.87%) for CB is below the current ROIC(4.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 14.48% | ||
| ROIC | 4.28% |
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
With an excellent Profit Margin value of 16.63%, CB belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
CB's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 20.29%, CB is doing good in the industry, outperforming 79.72% 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 | 20.29% | ||
| PM (TTM) | 16.63% | ||
| 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.
CB has less shares outstanding than it did 1 year ago.
CB has less shares outstanding than it did 5 years ago.
CB has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of CB is 0.96, which is an excellent value as it means it would take CB, only 0.96 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CB (0.96) is better than 65.73% of its industry peers.
CB has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
CB's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. CB outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | N/A |
ROIC/WACC0.89
WACC4.82%
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 13.67%, which is quite good.
Measured over the past years, CB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.36% on average per year.
Looking at the last year, CB shows a quite strong growth in Revenue. The Revenue has grown by 12.10% in the last year.
The Revenue has been growing by 10.24% on average over the past years. This is quite good.
EPS 1Y (TTM)13.67%
EPS 3Y21.41%
EPS 5Y17.36%
EPS Q2Q%8.66%
Revenue 1Y (TTM)12.1%
Revenue growth 3Y10.82%
Revenue growth 5Y10.24%
Sales Q2Q%3.46%
3.2 Future
CB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.15% yearly.
Based on estimates for the next years, CB will show a small growth in Revenue. The Revenue will grow by 5.32% on average per year.
EPS Next Y-3.81%
EPS Next 2Y8.21%
EPS Next 3Y8.77%
EPS Next 5Y1.15%
Revenue Next Year5.57%
Revenue Next 2Y5.54%
Revenue Next 3Y5.32%
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
The Price/Earnings ratio is 12.72, which indicates a correct valuation of CB.
Compared to the rest of the industry, the Price/Earnings ratio of CB is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.35, CB is valued rather cheaply.
CB is valuated correctly with a Price/Forward Earnings ratio of 13.22.
CB's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. CB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 13.22 |
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.
Based on the Price/Free Cash Flow ratio, CB is valued a bit cheaper than 60.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.09 | ||
| EV/EBITDA | 10.92 |
4.3 Compensation for Growth
CB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y8.21%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
CB has a Yearly Dividend Yield of 1.27%.
CB's Dividend Yield is comparable with the industry average which is at 3.10.
With a Dividend Yield of 1.27, CB pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
The dividend of CB has a limited annual growth rate of 3.69%.
CB has paid a dividend for at least 10 years, which is 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 Years7
Div Non Decr Years7
5.3 Sustainability
15.49% 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.
DP15.49%
EPS Next 2Y8.21%
EPS Next 3Y8.77%
286.59
+0.3 (+0.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.43%
Inst Owner Change2.96%
Ins Owners0.61%
Ins Owner Change3.26%
Market Cap114.75B
Analysts73.75
Price Target307.68 (7.36%)
Short Float %0.69%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend3.56
Dividend Growth(5Y)3.69%
DP15.49%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.43%
Min EPS beat(2)7.46%
Max EPS beat(2)11.41%
EPS beat(4)3
Avg EPS beat(4)4.82%
Min EPS beat(4)-0.99%
Max EPS beat(4)11.41%
EPS beat(8)6
Avg EPS beat(8)4.63%
EPS beat(12)9
Avg EPS beat(12)5.61%
EPS beat(16)12
Avg EPS beat(16)7.11%
Revenue beat(2)0
Avg Revenue beat(2)-5.41%
Min Revenue beat(2)-5.86%
Max Revenue beat(2)-4.97%
Revenue beat(4)0
Avg Revenue beat(4)-3.17%
Min Revenue beat(4)-5.86%
Max Revenue beat(4)-0.09%
Revenue beat(8)1
Avg Revenue beat(8)-0.57%
Revenue beat(12)4
Avg Revenue beat(12)2.42%
Revenue beat(16)8
Avg Revenue beat(16)6.35%
PT rev (1m)0.39%
PT rev (3m)0.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-45.68%
EPS NY rev (1m)-10.71%
EPS NY rev (3m)-11.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 13.22 | ||
| P/S | 2.06 | ||
| P/FCF | 7.09 | ||
| P/OCF | 7.09 | ||
| P/B | 1.79 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 10.92 |
EPS(TTM)22.53
EY7.86%
EPS(NY)21.67
Fwd EY7.56%
FCF(TTM)40.41
FCFY14.1%
OCF(TTM)40.41
OCFY14.1%
SpS139.24
BVpS159.89
TBVpS95.07
PEG (NY)N/A
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 14.48% | ||
| ROCE | 4.8% | ||
| ROIC | 4.28% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 5.99% | ||
| OM | 20.29% | ||
| PM (TTM) | 16.63% | ||
| GM | N/A | ||
| FCFM | 29.02% |
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 Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 18.88 | ||
| Cash Conversion | 139.1% | ||
| Profit Quality | 174.53% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC4.82%
ROIC/WACC0.89
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)13.67%
EPS 3Y21.41%
EPS 5Y17.36%
EPS Q2Q%8.66%
EPS Next Y-3.81%
EPS Next 2Y8.21%
EPS Next 3Y8.77%
EPS Next 5Y1.15%
Revenue 1Y (TTM)12.1%
Revenue growth 3Y10.82%
Revenue growth 5Y10.24%
Sales Q2Q%3.46%
Revenue Next Year5.57%
Revenue Next 2Y5.54%
Revenue Next 3Y5.32%
Revenue Next 5YN/A
EBIT growth 1Y19.45%
EBIT growth 3Y12.59%
EBIT growth 5Y16.53%
EBIT Next Year11.22%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y28.1%
FCF growth 3Y13.22%
FCF growth 5Y20.6%
OCF growth 1Y28.1%
OCF growth 3Y13.22%
OCF growth 5Y20.6%