CHUBB LTD (CB) Stock Fundamental Analysis
NYSE:CB - New York Stock Exchange, Inc. - CH0044328745 - Common Stock - Currency: USD
Taking everything into account, CB scores 5 out of 10 in our fundamental rating. CB was compared to 144 industry peers in the Insurance industry. Both the profitability and the financial health of CB get a neutral evaluation. Nothing too spectacular is happening here. CB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CB was profitable.
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
CB has a better Return On Assets (3.36%) than 73.61% of its industry peers.
With a decent Return On Equity value of 12.87%, CB is doing good in the industry, outperforming 63.89% of the companies in the same industry.
CB's Return On Invested Capital of 3.85% is fine compared to the rest of the industry. CB outperforms 74.31% of its industry peers.
CB had an Average Return On Invested Capital over the past 3 years of 3.87%. This 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
With a decent Profit Margin value of 15.05%, CB is doing good in 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 Operating Margin of 18.58%. This is in the better half of the industry: CB outperforms 77.78% of its industry peers.
In the last couple of years the Operating Margin of CB has grown nicely.
| 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.
Compared to 1 year ago, CB has an improved debt to assets ratio.
2.2 Solvency
CB has a debt to FCF ratio of 1.03. This is a very positive value and a sign of high solvency as it would only need 1.03 years to pay back of all of its debts.
The Debt to FCF ratio of CB (1.03) is better than 63.89% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that CB is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.23, CB is doing good in the industry, outperforming 68.75% of the companies in the same industry.
| 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
The earnings per share for CB have decreased by -0.10% in the last year.
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.
Measured over the past years, CB shows a quite strong growth in Revenue. The Revenue has been growing by 10.24% on average per year.
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
The Earnings Per Share is expected to grow by 3.12% 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 4.87% 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
Based on the Price/Earnings ratio of 13.47, the valuation of CB can be described as correct.
CB's Price/Earnings ratio is in line with the industry average.
CB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
The Price/Forward Earnings ratio is 10.65, which indicates a very decent valuation of CB.
CB's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, CB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.47 | ||
| Fwd PE | 10.65 |
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.
CB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.73 | ||
| EV/EBITDA | 11.96 |
4.3 Compensation for Growth
The decent profitability rating of CB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y8.02%
EPS Next 3Y8.4%
5. Dividend
5.1 Amount
CB has a Yearly Dividend Yield of 1.37%.
CB's Dividend Yield is comparable with the industry average which is at 3.51.
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 paid a dividend for at least 10 years, which is 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)3.69%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
CB pays out 17.17% of its income as dividend. This is a 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%
280.08
-9.51 (-3.28%)
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 Cap112.24B
Analysts73.55
Price Target312.3 (11.5%)
Short Float %0.89%
Short Ratio2.05
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 | 13.47 | ||
| Fwd PE | 10.65 | ||
| P/S | 2 | ||
| P/FCF | 7.73 | ||
| P/OCF | 7.73 | ||
| P/B | 1.71 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 11.96 |
EPS(TTM)20.8
EY7.43%
EPS(NY)26.29
Fwd EY9.39%
FCF(TTM)36.25
FCFY12.94%
OCF(TTM)36.25
OCFY12.94%
SpS140.27
BVpS164.02
TBVpS98.94
PEG (NY)N/A
PEG (5Y)0.78
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%