Chubb (CB) AI Stock Analysis

• Market Cap: $111.84B
• Dividend Yield: 1.65%
• Average Volume (3M): 1.95M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.26
• Revenue Growth: 8.92%
• EPS Growth: N/A
• Country: US
• Employees: 43,000
• Sector: Financial
• Sector Strength: 84
• Industry: Insurance - Property & Casualty
• EPS (TTM): 20.77
• Shares Outstanding: 400,685,100
• 10 Day Avg. Volume: 1,857,291
• 30 Day Avg. Volume: 1,953,105
• PEG Ratio: 2.92
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.09
• Price to Cash Flow (P/CF): 6.40
• P/FCF Ratio: 6.20
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.43
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $307.82
• Price Target Upside: 10.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

Chubb's overall stock score reflects its strong financial performance and attractive valuation. While technical analysis indicates some caution, the company’s strategic acquisitions and capital returns provide a positive outlook. Earnings call highlights mixed sentiment, balancing strong growth with challenges like catastrophe losses.

Positive Factors

Earnings

Chubb Limited's fourth-quarter results beat both the analyst's estimate and consensus, showing strong performance.

Market Opportunities

The CEO expressed optimism for Chubb’s future, highlighting favorable market conditions and growth opportunities.

Strategic Actions

Recent strategic actions, like acquiring Cigna’s Asia-Pacific business and launching new products, are expected to drive growth in emerging markets.

Negative Factors

Catastrophe Losses

Management expects $1.5bn catastrophe losses from the Los Angeles wildfires, which is higher than the $1.3bn expectation.

Investment Income

Net investment income came $30mn lower than expected, creating a headwind.

Reserve Uncertainty

Reserve questions are expected to remain an overhang for Chubb and the industry, overshadowing the earnings beat and improved pricing commentary.

Chubb Business Overview & Revenue Model

Company Description

Chubb Limited (CB) is a global insurance company, providing a wide array of insurance products and services to individuals and businesses around the world. With operations in 54 countries, Chubb offers commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance. The company is known for its extensive product offerings across various sectors, including property, casualty, accident, health, and specialty insurance.

How the Company Makes Money

Chubb makes money primarily through the underwriting of insurance policies and investment income. The company collects premiums from policyholders, which serves as a significant revenue stream. These premiums are used not only to cover claims but also to be invested in various financial instruments, generating additional income. Chubb's underwriting operations are divided into segments such as North America Commercial P&C Insurance, North America Personal P&C Insurance, and Overseas General Insurance, each contributing to the company's revenue. Additionally, strategic partnerships and joint ventures in different regions enhance its market reach and customer base, further bolstering earnings. The company's disciplined underwriting practices and diversified portfolio help manage risk and ensure profitability.

Chubb Financial Statement Overview

Summary

Chubb exhibits strong financial health with consistent revenue growth and robust cash flow generation. The balance sheet is stable, although rising debt levels require monitoring. Overall, Chubb is well-positioned in the insurance industry, but attention to debt management and potential investment needs is advisable.

Income Statement

Chubb has demonstrated strong revenue growth over the years, with a substantial increase from $34.23 billion in 2019 to $49.83 billion in 2023. The gross profit margin is consistently at 100% due to the nature of the insurance business where total revenue equals gross profit. The EBIT and EBITDA margins are solid, reflecting strong operational efficiency. Net profit margin is robust, with a notable increase in net income to $9.27 billion in 2024. However, the 2024 data lacks a total revenue figure, making it challenging to evaluate the latest margins accurately.

Balance Sheet

Chubb maintains a strong equity position, with stockholders' equity increasing from $55.33 billion in 2019 to $64.02 billion in 2024. The debt-to-equity ratio is manageable, indicating prudent financial leverage. The equity ratio shows a stable balance between assets and liabilities. However, the total debt has increased slightly, which could pose risks if not managed carefully.

Cash Flow

Chubb's operating cash flow has shown consistent growth, indicating strong cash generation capabilities. The free cash flow has also increased, supporting healthy financial flexibility. The operating cash flow to net income ratio is favorable, suggesting efficient cash earnings conversion. However, the absence of capital expenditures in recent years raises questions about potential underinvestment.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
56.01B	49.83B	43.12B	40.96B	35.99B
	Gross Profit
56.01B	49.83B	43.12B	40.96B	35.99B
	EBIT
0.00	9.39B	7.14B	9.82B	4.16B
	EBITDA
0.00	10.20B	7.34B	10.57B	4.97B
	Net Income Common Stockholders
9.27B	9.03B	5.25B	8.53B	3.53B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.19B	4.55B	2.01B	1.66B	1.75B
	Total Assets
246.55B	230.68B	199.02B	200.05B	190.77B
	Total Debt
15.18B	14.49B	14.88B	16.17B	14.95B
	Net Debt
12.89B	12.05B	12.87B	14.51B	13.20B
	Total Liabilities
178.15B	166.99B	148.50B	140.34B	131.33B
	Stockholders Equity
64.02B	59.51B	50.52B	59.71B	59.44B
Cash Flow		Free Cash Flow
16.18B	12.63B	11.26B	11.15B	9.79B
	Operating Cash Flow
16.18B	12.63B	11.26B	11.15B	9.79B
	Investing Cash Flow
-13.92B	-7.65B	-5.65B	-6.66B	-7.52B
	Financing Cash Flow
-2.18B	-4.49B	-5.14B	-4.41B	-2.08B

Chubb Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 279.11
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CB, the sentiment is Negative. The current price of 279.11 is below the 20-day moving average (MA) of 287.19, below the 50-day MA of 285.06, and above the 200-day MA of 278.62, indicating a neutral trend. The MACD of -1.46 indicates Positive momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 35.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CB.

Chubb Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WRB	82 Outperform	$26.73B	16.36	20.73%	0.45%	11.38%	14.76%
MKL	75 Outperform	$22.52B	8.90	16.52%	―	5.17%	35.36%
ALL	74 Outperform	$51.15B	11.35	23.80%	1.95%	12.28%	―
CB	74 Outperform	$111.84B	13.44	13.40%	1.65%	8.92%	―
TRV	71 Outperform	$58.72B	14.11	16.05%	1.62%	9.60%	36.89%
PGR	71 Outperform	$163.30B	19.34	36.98%	1.85%	20.74%	51.73%
Sector *	63 Neutral	$12.31B	9.55	7.88%	79.24%	12.71%	-4.71%

Chubb Corporate Events

Chubb Highlights Strategic Growth in Investor Presentation

Chubb Limited has released an investor presentation available on its website, highlighting the company’s financial performance, business mix, strategic initiatives, and growth opportunities. This presentation is intended for investor meetings from December 9, 2024, and will be accessible for at least 60 days, offering valuable insights for those interested in the financial markets.