Chubb Limited
Chubb Limited Fundamental Analysis
Chubb Limited (CB) shows strong financial fundamentals with a PE ratio of 12.70, profit margin of 17.30%, and ROE of 14.69%. The company generates $59.1B in annual revenue with strong year-over-year growth of 12.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CB's fundamental strength across five key dimensions:
Efficiency Score
WeakCB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCB trades at attractive valuation levels.
Growth Score
ModerateCB shows steady but slowing expansion.
Financial Health Score
ModerateCB shows balanced financial health with some risks.
Profitability Score
ModerateCB maintains healthy but balanced margins.
Key Financial Metrics
Is CB Expensive or Cheap?
P/E Ratio
CB trades at 12.70 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CB's PEG of 1.80 indicates fair valuation.
Price to Book
The market values Chubb Limited at 1.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.14 times EBITDA. This signals the market has high growth expectations.
How Well Does CB Make Money?
Net Profit Margin
For every $100 in sales, Chubb Limited keeps $17.30 as profit after all expenses.
Operating Margin
Core operations generate 38.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.69 in profit for every $100 of shareholder equity.
ROA
Chubb Limited generates $3.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Chubb Limited produces operating cash flow of $8.69B, showing steady but balanced cash generation.
Free Cash Flow
Chubb Limited generates strong free cash flow of $8.69B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $22.08 in free cash annually.
FCF Yield
CB converts 6.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.80
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How CB Stacks Against Its Sector Peers
| Metric | CB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.70 | 18.86 | Better (Cheaper) |
| ROE | 14.69% | 847.00% | Weak |
| Net Margin | 17.30% | 4202.00% | Weak |
| Debt/Equity | 0.00 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 3.79% | -21543.00% (disorted) | Weak |
CB outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Chubb Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
83.08%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
132.33%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
184.77%
Industry Style: Value, Dividend, Cyclical
High Growth