CHUBB LTD (CB) Stock Fundamental Analysis
NYSE:CB - New York Stock Exchange, Inc. - CH0044328745 - Common Stock - Currency: USD
CB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 143 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
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.
In the past 5 years CB always reported a positive cash flow from operatings.
1.2 Ratios
CB has a better Return On Assets (3.36%) than 72.73% of its industry peers.
Looking at the Return On Equity, with a value of 12.87%, CB is in the better half of the industry, outperforming 63.64% 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 73.43% of its industry peers.
CB had an Average Return On Invested Capital over the past 3 years of 3.86%. This is in line with the industry average of 4.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 12.87% | ||
| ROIC | 3.85% |
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 better Profit Margin (15.05%) than 81.82% 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 79.72% 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 3Y1.62%
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
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 1.03, 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.
CB has a better Debt to FCF ratio (1.03) than 64.34% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that CB is not too dependend on debt financing.
CB's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. CB outperforms 67.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | N/A |
ROIC/WACC0.79
WACC4.86%
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 1.32%.
CB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.36% yearly.
Looking at the last year, CB shows a small growth in Revenue. The Revenue has grown by 6.79% 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)1.32%
EPS 3Y21.41%
EPS 5Y17.36%
EPS Q2Q%14.13%
Revenue 1Y (TTM)6.79%
Revenue growth 3Y10.91%
Revenue growth 5Y10.24%
Sales Q2Q%5.21%
3.2 Future
CB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.12% yearly.
The Revenue is expected to grow by 4.63% on average over the next years.
EPS Next Y-2.19%
EPS Next 2Y7.89%
EPS Next 3Y8.19%
EPS Next 5Y3.12%
Revenue Next Year4.1%
Revenue Next 2Y4.89%
Revenue Next 3Y4.63%
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
The Price/Earnings ratio is 12.34, which indicates a correct valuation of CB.
CB's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.93. CB is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.14 indicates a reasonable valuation of CB.
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 37.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.34 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
CB's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 11.11 |
4.3 Compensation for Growth
The decent profitability rating of CB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.71
EPS Next 2Y7.89%
EPS Next 3Y8.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.44%, CB has a reasonable but not impressive dividend return.
CB's Dividend Yield is comparable with the industry average which is at 3.29.
Compared to the average S&P500 Dividend Yield of 2.32, CB is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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
17.17% of the earnings are spent on dividend by CB. This is a low number and sustainable payout ratio.
The dividend of CB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.17%
EPS Next 2Y7.89%
EPS Next 3Y8.19%
265.99
-3.16 (-1.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.59%
Inst Owner Change-0.67%
Ins Owners0.59%
Ins Owner Change-3.65%
Market Cap106.59B
Analysts73.55
Price Target312.3 (17.41%)
Short Float %0.78%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
Yearly Dividend3.56
Dividend Growth(5Y)3.7%
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)1.39%
Revenue beat(16)7
Avg Revenue beat(16)4.34%
PT rev (1m)0%
PT rev (3m)1.1%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)-0.19%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)1.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.34 | ||
| Fwd PE | 10.14 | ||
| P/S | 1.9 | ||
| P/FCF | 7.34 | ||
| P/OCF | 7.34 | ||
| P/B | 1.62 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 11.11 |
EPS(TTM)21.56
EY8.11%
EPS(NY)26.23
Fwd EY9.86%
FCF(TTM)36.25
FCFY13.63%
OCF(TTM)36.25
OCFY13.63%
SpS140.27
BVpS164.02
TBVpS98.94
PEG (NY)N/A
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 12.87% | ||
| ROCE | 4.31% | ||
| ROIC | 3.85% | ||
| ROICexc | 3.88% | ||
| ROICexgc | 5.48% | ||
| OM | 18.58% | ||
| PM (TTM) | 15.05% | ||
| GM | N/A | ||
| FCFM | 25.85% |
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%
ROICexcg growth 3Y1.27%
ROICexcg 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-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
WACC4.86%
ROIC/WACC0.79
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)1.32%
EPS 3Y21.41%
EPS 5Y17.36%
EPS Q2Q%14.13%
EPS Next Y-2.19%
EPS Next 2Y7.89%
EPS Next 3Y8.19%
EPS Next 5Y3.12%
Revenue 1Y (TTM)6.79%
Revenue growth 3Y10.91%
Revenue growth 5Y10.24%
Sales Q2Q%5.21%
Revenue Next Year4.1%
Revenue Next 2Y4.89%
Revenue Next 3Y4.63%
Revenue Next 5YN/A
EBIT growth 1Y4.89%
EBIT growth 3Y12.71%
EBIT growth 5Y16.53%
EBIT Next Year11.22%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.25%
FCF growth 3Y13.22%
FCF growth 5Y20.6%
OCF growth 1Y31.25%
OCF growth 3Y13.22%
OCF growth 5Y20.6%