CHUBB LTD (CB) Stock Fundamental Analysis
NYSE:CB - New York Stock Exchange, Inc. - CH0044328745 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CB. CB was compared to 144 industry peers in the Insurance industry. CB has an average financial health and profitability rating. 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.
In the past 5 years CB has always been profitable.
Each year in the past 5 years CB had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.36%, CB is doing good in the industry, outperforming 73.61% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.87%, CB is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.85%, CB is doing good in the industry, outperforming 74.31% of the companies in the same industry.
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
The Profit Margin of CB (15.05%) is better than 79.86% of its industry peers.
In the last couple of years the Profit Margin of CB has grown nicely.
Looking at the Operating Margin, with a value of 18.58%, CB is in the better half of the industry, outperforming 77.78% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CB is destroying value.
Compared to 1 year ago, CB has less shares outstanding
Compared to 5 years ago, CB has less shares outstanding
Compared to 1 year ago, CB has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of CB is 1.03, which is an excellent value as it means it would take CB, only 1.03 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.03, CB is doing good in the industry, outperforming 63.89% of the companies in the same industry.
CB has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
CB's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. CB outperforms 68.75% of its industry peers.
| 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
CB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.10%.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.00%.
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
Based on estimates for the next years, CB will show a small growth in Earnings Per Share. The EPS will grow by 3.12% on average per year.
The Revenue is expected to grow by 4.87% on average over the next years.
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.
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 13.83, which indicates a correct valuation of CB.
The rest of the industry has a similar Price/Earnings ratio as CB.
When comparing the Price/Earnings ratio of CB to the average of the S&P500 Index (27.15), we can say CB is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.94, the valuation of CB can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as CB.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, CB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.83 | ||
| Fwd PE | 10.94 |
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 | 7.93 | ||
| EV/EBITDA | 11.97 |
4.3 Compensation for Growth
The decent profitability rating of CB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y8.02%
EPS Next 3Y8.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, CB has a reasonable but not impressive dividend return.
CB's Dividend Yield is comparable with the industry average which is at 3.51.
With a Dividend Yield of 1.37, CB pays less dividend than the S&P500 average, which is at 2.42.
| 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%
NYSE:CB (7/1/2025, 12:53:41 PM)
287.62
-2.1 (-0.72%)
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 Cap115.26B
Analysts73.55
Price Target312.3 (8.58%)
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 | 13.83 | ||
| Fwd PE | 10.94 | ||
| P/S | 2.05 | ||
| P/FCF | 7.93 | ||
| P/OCF | 7.93 | ||
| P/B | 1.75 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 11.97 |
EPS(TTM)20.8
EY7.23%
EPS(NY)26.29
Fwd EY9.14%
FCF(TTM)36.25
FCFY12.6%
OCF(TTM)36.25
OCFY12.6%
SpS140.27
BVpS164.02
TBVpS98.94
PEG (NY)N/A
PEG (5Y)0.8
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%