Chubb Ltd (CB) stock analysis

P/E above its 5-year median

Chubb's P/E of 13.0 is above its own 5-year median of 12.4.

P/E above the industry

Chubb's P/E of 13.0 is above the Fire, Marine, and Casualty Insurance median of 10.4.

P/S above the industry

Chubb's price-to-sales of 2.29 is above the Fire, Marine, and Casualty Insurance median of 1.28.

P/B above the industry

Chubb's price-to-book of 1.93 is above the Fire, Marine, and Casualty Insurance median of 1.62.

Trading above fair value

The share price of $370.33 is above our fair value estimate of $321.78.

Margin of safety under 20%

The price is 15.1% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 11.3% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 27.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 16.1% over the last twelve months, against a 5-year average of 23.9% a year.

Growing faster than the industry

Revenue grew 5.7% over the last twelve months; the Fire, Marine, and Casualty Insurance median is 5.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 15.5% over the last twelve months and averaged 14.1% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 4.1%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Chubb's return on equity of 15.5% is below the Fire, Marine, and Casualty Insurance median of 15.9%.

Earnings grew over 5 years

Net income grew 23.9% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 18.2% over the last twelve months, against a 5-year average of 17.0%.

Net margin above the industry

Chubb's net margin of 18.2% is above the Fire, Marine, and Casualty Insurance median of 12.0%.

Low debt

Debt is 0.9% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 0.0% five years ago to 0.9%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 2666% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

Insurers do not split assets into current and non-current.

Bankruptcy risk (Altman Z)

The Altman model does not apply to insurers.

Pays a dividend

Chubb paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Chubb yields 0.8%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 13.7% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.