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 143 industry peers in the Insurance industry. CB has an excellent profitability rating, but 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
In the past year CB was profitable.
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
With a decent Return On Assets value of 3.76%, CB is doing good in the industry, outperforming 74.83% of the companies in the same industry.
CB's Return On Equity of 14.48% is in line compared to the rest of the industry. CB outperforms 58.74% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.28%, CB is in the better half of the industry, outperforming 74.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CB is in line with the industry average of 4.47%.
The last Return On Invested Capital (4.28%) for CB is above the 3 year average (3.87%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 14.48% | ||
| ROIC | 4.28% |
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
CB has a better Profit Margin (16.63%) than 81.82% of its industry peers.
CB's Profit Margin has improved in the last couple of years.
CB's Operating Margin of 20.29% is fine compared to the rest of the industry. CB outperforms 77.62% of its industry peers.
In the last couple of years the Operating Margin of CB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.29% | ||
| PM (TTM) | 16.63% | ||
| 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.
Compared to 1 year ago, CB has less shares outstanding
The number of shares outstanding for CB has been reduced compared to 5 years ago.
CB has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of CB is 0.96, which is an excellent value as it means it would take CB, only 0.96 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.96, CB is in the better half of the industry, outperforming 64.34% of the companies in the same industry.
CB has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
CB has a Debt to Equity ratio of 0.24. This is in the better half of the industry: CB outperforms 68.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | N/A |
ROIC/WACC0.86
WACC4.96%
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 nice 13.67% over the past year.
The Earnings Per Share has been growing by 17.36% on average over the past years. This is quite good.
Looking at the last year, CB shows a quite strong growth in Revenue. The Revenue has grown by 12.10% in the last year.
The Revenue has been growing by 10.24% on average over the past years. This is quite good.
EPS 1Y (TTM)13.67%
EPS 3Y21.41%
EPS 5Y17.36%
EPS Q2Q%8.66%
Revenue 1Y (TTM)12.1%
Revenue growth 3Y10.82%
Revenue growth 5Y10.24%
Sales Q2Q%3.46%
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.
CB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.32% yearly.
EPS Next Y-3.93%
EPS Next 2Y8.11%
EPS Next 3Y8.58%
EPS Next 5Y3.12%
Revenue Next Year5.57%
Revenue Next 2Y5.54%
Revenue Next 3Y5.32%
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.
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
Based on the Price/Earnings ratio of 12.42, the valuation of CB can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as CB.
Compared to an average S&P500 Price/Earnings ratio of 28.29, CB is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.93, CB is valued correctly.
CB's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, CB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 12.93 |
4.2 Price Multiples
CB's Enterprise Value to EBITDA ratio is in line with the industry average.
62.94% of the companies in the same industry are more expensive than CB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.93 | ||
| EV/EBITDA | 10.89 |
4.3 Compensation for Growth
The decent profitability rating of CB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.72
EPS Next 2Y8.11%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
CB has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.28, CB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, CB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
The dividend of CB has a limited annual growth rate of 3.69%.
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)3.69%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
CB pays out 15.49% 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.
DP15.49%
EPS Next 2Y8.11%
EPS Next 3Y8.58%
279.78
-5.81 (-2.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.43%
Inst Owner Change0.97%
Ins Owners0.61%
Ins Owner Change2.18%
Market Cap112.11B
Analysts74.38
Price Target309.02 (10.45%)
Short Float %0.72%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend3.56
Dividend Growth(5Y)3.69%
DP15.49%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.43%
Min EPS beat(2)7.46%
Max EPS beat(2)11.41%
EPS beat(4)3
Avg EPS beat(4)4.82%
Min EPS beat(4)-0.99%
Max EPS beat(4)11.41%
EPS beat(8)6
Avg EPS beat(8)4.63%
EPS beat(12)9
Avg EPS beat(12)5.61%
EPS beat(16)12
Avg EPS beat(16)7.11%
Revenue beat(2)0
Avg Revenue beat(2)-5.41%
Min Revenue beat(2)-5.86%
Max Revenue beat(2)-4.97%
Revenue beat(4)0
Avg Revenue beat(4)-3.17%
Min Revenue beat(4)-5.86%
Max Revenue beat(4)-0.09%
Revenue beat(8)1
Avg Revenue beat(8)-0.57%
Revenue beat(12)4
Avg Revenue beat(12)2.42%
Revenue beat(16)8
Avg Revenue beat(16)6.35%
PT rev (1m)0.44%
PT rev (3m)0.27%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)-45.49%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-11.28%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 12.93 | ||
| P/S | 2.01 | ||
| P/FCF | 6.93 | ||
| P/OCF | 6.93 | ||
| P/B | 1.75 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 10.89 |
EPS(TTM)22.53
EY8.05%
EPS(NY)21.65
Fwd EY7.74%
FCF(TTM)40.39
FCFY14.43%
OCF(TTM)40.39
OCFY14.43%
SpS139.14
BVpS159.78
TBVpS95
PEG (NY)N/A
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 14.48% | ||
| ROCE | 4.8% | ||
| ROIC | 4.28% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 5.99% | ||
| OM | 20.29% | ||
| PM (TTM) | 16.63% | ||
| GM | N/A | ||
| FCFM | 29.02% |
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 Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 18.88 | ||
| Cash Conversion | 139.1% | ||
| Profit Quality | 174.53% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC4.96%
ROIC/WACC0.86
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)13.67%
EPS 3Y21.41%
EPS 5Y17.36%
EPS Q2Q%8.66%
EPS Next Y-3.93%
EPS Next 2Y8.11%
EPS Next 3Y8.58%
EPS Next 5Y3.12%
Revenue 1Y (TTM)12.1%
Revenue growth 3Y10.82%
Revenue growth 5Y10.24%
Sales Q2Q%3.46%
Revenue Next Year5.57%
Revenue Next 2Y5.54%
Revenue Next 3Y5.32%
Revenue Next 5YN/A
EBIT growth 1Y19.45%
EBIT growth 3Y12.59%
EBIT growth 5Y16.53%
EBIT Next Year11.22%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y28.1%
FCF growth 3Y13.22%
FCF growth 5Y20.6%
OCF growth 1Y28.1%
OCF growth 3Y13.22%
OCF growth 5Y20.6%