CHUBB LTD (CB) Stock Fundamental Analysis
USA - NYSE:CB - CH0044328745 - Common Stock
295.49 USD
-0.73 (-0.25%)
297.995 USD
+2.5 (+0.85%)
CB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. While CB belongs to the best of the industry regarding profitability, 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.
CB had a positive operating cash flow in the past year.
In the past 5 years CB has always been profitable.
In the past 5 years CB always reported a positive cash flow from operatings.
1.2 Ratios
CB has a Return On Assets of 3.58%. This is in the better half of the industry: CB outperforms 72.60% of its industry peers.
CB has a Return On Equity of 13.46%. This is in the better half of the industry: CB outperforms 60.96% of its industry peers.
CB's Return On Invested Capital of 4.37% is fine compared to the rest of the industry. CB outperforms 76.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CB is in line with the industry average of 4.51%.
The 3 year average ROIC (3.86%) for CB is below the current ROIC(4.37%), indicating increased profibility in the last year.
| 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 Profit Margin of 16.54%. This is amongst the best in the industry. CB outperforms 82.19% of its industry peers.
CB's Profit Margin has improved in the last couple of years.
The Operating Margin of CB (21.76%) is better than 81.51% of its industry peers.
In the last couple of years the Operating Margin of CB has grown nicely.
| 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
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.
The number of shares outstanding for CB has been reduced compared to 5 years ago.
The debt/assets ratio for CB has been reduced compared to a year ago.
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.
CB has a better Debt to FCF ratio (1.32) than 63.01% of its industry peers.
CB has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.25, CB is in the better half of the industry, outperforming 65.07% of the companies in the same industry.
| 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%.
CB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.36% yearly.
CB shows a small growth in Revenue. In the last year, the Revenue has grown by 7.22%.
The Revenue has been growing by 10.24% on average over the past years. This is quite good.
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.
Based on estimates for the next years, CB will show a small growth in Revenue. The Revenue will grow by 4.78% on average per year.
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.
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
Based on the Price/Earnings ratio of 12.67, the valuation of CB can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of CB is on the same level as its industry peers.
CB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
CB is valuated reasonably with a Price/Forward Earnings ratio of 10.90.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CB is on the same level as its industry peers.
CB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 10.9 |
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 | 8.84 | ||
| EV/EBITDA | 10.11 |
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)1.51
PEG (5Y)0.73
EPS Next 2Y9.67%
EPS Next 3Y9.45%
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.
CB's Dividend Yield is comparable with the industry average which is at 3.47.
With a Dividend Yield of 1.37, CB pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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.
As CB did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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%
295.49
-0.73 (-0.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.21%
Inst Owner Change-1.53%
Ins Owners0.59%
Ins Owner Change-6%
Market Cap117.81B
Revenue(TTM)58.51B
Net Income(TTM)9.68B
Analysts72.12
Price Target314.14 (6.31%)
Short Float %0.62%
Short Ratio1.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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)2.72%
PT rev (3m)0.59%
EPS NQ rev (1m)2.09%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)9.48%
EPS NY rev (3m)10.81%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 10.9 | ||
| P/S | 2.01 | ||
| P/FCF | 8.84 | ||
| P/OCF | 8.84 | ||
| P/B | 1.64 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 10.11 |
EPS(TTM)23.33
EY7.9%
EPS(NY)27.1
Fwd EY9.17%
FCF(TTM)33.41
FCFY11.31%
OCF(TTM)33.41
OCFY11.31%
SpS146.76
BVpS180.23
TBVpS113.62
PEG (NY)1.51
PEG (5Y)0.73
Graham Number307.58
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 5 / 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 12.67 and the Price/Book (PB) ratio is 1.64.
What is the financial health of CHUBB LTD (CB) stock?
The financial health rating of CHUBB LTD (CB) is 4 / 10.