CHUBB LTD (CB)
CH0044328745 - Common Stock
Taking everything into account, CB scores 6 out of 10 in our fundamental rating. CB was compared to 141 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 is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
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 better Return On Assets (3.91%) than 79.14% of its industry peers.
CB's Return On Equity of 15.17% is fine compared to the rest of the industry. CB outperforms 73.38% of its industry peers.
CB's Return On Invested Capital of 3.74% is fine compared to the rest of the industry. CB outperforms 75.54% 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 4.12%.
The last Return On Invested Capital (3.74%) for CB is above the 3 year average (3.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 15.17% | ||
| ROIC | 3.74% |
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
CB has a better Profit Margin (18.15%) than 84.17% of its industry peers.
CB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.04%, CB is in the better half of the industry, outperforming 75.54% of the companies in the same industry.
CB's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.04% | ||
| PM (TTM) | 18.15% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CB is destroying value.
Compared to 1 year ago, CB has less shares outstanding
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 1.17, which is an excellent value as it means it would take CB, only 1.17 years of fcf income to pay off all of its debts.
CB has a Debt to FCF ratio of 1.17. This is in the better half of the industry: CB outperforms 69.06% 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.
CB has a Debt to Equity ratio of 0.25. This is in the better half of the industry: CB outperforms 71.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | N/A |
ROIC/WACC0.75
WACC5.01%
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 30.05%, which is quite impressive.
Measured over the past years, CB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.97% on average per year.
Looking at the last year, CB shows a quite strong growth in Revenue. The Revenue has grown by 15.45% in the last year.
The Revenue has been growing by 8.70% on average over the past years. This is quite good.
EPS 1Y (TTM)30.05%
EPS 3Y39.51%
EPS 5Y15.97%
EPS growth Q2Q36.79%
Revenue 1Y (TTM)15.45%
Revenue growth 3Y11.38%
Revenue growth 5Y8.7%
Revenue growth Q2Q13.71%
3.2 Future
Based on estimates for the next years, CB will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.29% on average per year.
CB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.90% yearly.
EPS Next Y12.97%
EPS Next 2Y11.15%
EPS Next 3Y10.29%
EPS Next 5YN/A
Revenue Next Year6.92%
Revenue Next 2Y6.55%
Revenue Next 3Y9.9%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.37, the valuation of CB can be described as correct.
CB's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CB to the average of the S&P500 Index (25.20), we can say CB is valued rather cheaply.
A Price/Forward Earnings ratio of 10.95 indicates a reasonable valuation of CB.
CB's Price/Forward Earnings ratio is in line with the industry average.
CB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
CB's Enterprise Value to EBITDA ratio is in line with the industry average.
CB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.87 | ||
| EV/EBITDA | 11.3 |
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.
The decent profitability rating of CB may justify a higher PE ratio.
PEG (NY)0.95
PEG (5Y)0.77
EPS Next 2Y11.15%
EPS Next 3Y10.29%
5. Dividend
5.1 Amount
CB has a Yearly Dividend Yield of 1.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.35, CB has a dividend in line with its industry peers.
With a Dividend Yield of 1.42, CB pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
The dividend of CB has a limited annual growth rate of 3.25%.
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)3.25%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
CB pays out 15.44% of its income as dividend. This is a sustainable payout ratio.
The dividend of CB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.44%
EPS Next 2Y11.15%
EPS Next 3Y10.29%
CHUBB LTD
NYSE:CB (4/26/2024, 11:01:38 AM)
245.15
-0.81 (-0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap99.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 10.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.95
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 15.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.04% | ||
| PM (TTM) | 18.15% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)30.05%
EPS 3Y39.51%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.45%
Revenue growth 3Y11.38%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y