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 144 industry peers in the Insurance industry. While CB has a great profitability rating, there are some minor concerns on its financial health. CB has a correct valuation and a medium 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.
In the past 5 years CB always reported a positive cash flow from operatings.
1.2 Ratios
CB has a Return On Assets of 3.99%. This is in the better half of the industry: CB outperforms 72.54% of its industry peers.
Looking at the Return On Equity, with a value of 15.20%, CB is in the better half of the industry, outperforming 64.08% of the companies in the same industry.
The Return On Invested Capital of CB (3.95%) is better than 71.83% of its industry peers.
CB had an Average Return On Invested Capital over the past 3 years of 3.70%. This is in line with the industry average of 4.61%.
The last Return On Invested Capital (3.95%) for CB is above the 3 year average (3.70%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 18.32%, CB belongs to the best of the industry, outperforming 81.69% 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 19.93%, CB is doing good in the industry, outperforming 79.58% 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
CB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
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 has a Debt to FCF ratio of 1.11. This is in the better half of the industry: CB outperforms 65.49% of its industry peers.
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 65.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | N/A |
ROIC/WACC0.83
WACC4.75%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.18% over the past year.
The Earnings Per Share has been growing by 15.97% on average over the past years. This is quite good.
CB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.22%.
Measured over the past years, CB shows a quite strong growth in Revenue. The Revenue has been growing by 8.70% on average per year.
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.
The Revenue is expected to grow by 5.06% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 10.97, the valuation of CB can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CB is on the same level as its industry peers.
CB is valuated cheaply when we compare the Price/Earnings ratio to 28.42, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.16, which indicates a very decent valuation of CB.
The rest of the industry has a similar Price/Forward Earnings ratio as CB.
CB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
CB's Enterprise Value to EBITDA is on the same level as the industry average.
CB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.41 | ||
| 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)0.8
PEG (5Y)0.69
EPS Next 2Y10.94%
EPS Next 3Y9.85%
5. Dividend
5.1 Amount
CB has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.11, CB has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.27, CB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of CB has a limited annual growth rate of 3.25%.
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)3.25%
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 (1/28/2025, 8:27:50 PM)
After market: 272.85 +0.58 (+0.21%)272.27
-4.22 (-1.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.54%
Inst Owner Change-0.42%
Ins Owners0.6%
Ins Owner Change-3.45%
Market Cap109.75B
Analysts74.38
Price Target308.19 (13.19%)
Short Float %0.84%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend3.4
Dividend Growth(5Y)3.25%
DP14.19%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
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)0.18%
PT rev (3m)6.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.49%
EPS NY rev (1m)0%
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)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 11.16 | ||
| P/S | 2.01 | ||
| P/FCF | 7.41 | ||
| P/OCF | 7.41 | ||
| P/B | 1.67 | ||
| P/tB | 2.8 | ||
| EV/EBITDA | 11.05 |
EPS(TTM)24.81
EY9.11%
EPS(NY)24.4
Fwd EY8.96%
FCF(TTM)36.72
FCFY13.49%
OCF(TTM)36.72
OCFY13.49%
SpS135.38
BVpS163.13
TBVpS97.18
PEG (NY)0.8
PEG (5Y)0.69
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
WACC4.75%
ROIC/WACC0.83
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 Year21.87%
EBIT Next 3Y9.61%
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%