Chubb (CB) AI Stock Analysis

• Market Cap: $111.46B
• Dividend Yield: 1.34%
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.28
• Revenue Growth: 6.74%
• EPS Growth: -4.05%
• Country: US
• Employees: 43,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 6.14
• Shares Outstanding: 398,690,300
• 10 Day Avg. Volume: 2,154,039
• 30 Day Avg. Volume: 1,819,264
• PEG Ratio: 2.76
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 6.97
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 2.46
• Enterprise Value/Gross Profit: 9.00
• Enterprise Value/Ebitda: 11.29
• 1Y Price Target: $306.95
• Price Target Upside: 8.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 80 Outperform
• Price Target: $315.00 ▲(11.60% Upside)

Chubb's overall stock score reflects its strong financial performance and positive earnings call results. The company's robust profitability, efficient operations, and strategic growth across segments and geographies are significant strengths. Technical analysis and valuation indicate stability and fair valuation, supporting a favorable investment outlook.

Positive Factors

Strong Financial Performance

Chubb's record EPS and income growth indicate robust financial health and operational efficiency, supporting long-term profitability and market competitiveness.

Tangible Book Value Growth

Significant growth in tangible book value per share enhances shareholder equity and reflects strong asset management, contributing to long-term financial stability.

Global Premium Growth

Chubb's premium growth across global markets and segments highlights its strong market position and ability to capture diverse revenue streams, ensuring sustained growth.

Negative Factors

Competitive Market Pressures

Increased competition in the large account commercial P&C market may pressure margins and limit growth opportunities, affecting Chubb's long-term market share.

Property Pricing Decline

Declining property pricing in North America could reduce revenue from this segment, impacting overall profitability and requiring strategic adjustments.

Financial Lines Pricing Pressure

Continued pricing pressure in financial lines may weaken Chubb's competitive edge and profitability in this segment, necessitating strategic pricing and cost management.

Chubb Business Overview & Revenue Model

Company Description

Chubb Limited provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical, cyber risk, surety, and excess casualty; and group accident and health insurance to large, middle market, and small commercial businesses. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services. The company's North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm and ranch property, and commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction risk; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels. The company's Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand to property and casualty companies. Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual term life, group term life, medical and health, personal accident, credit life, universal life, and unit linked contracts. The company markets its products primarily through insurance and reinsurance brokers. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was incorporated in 1985 and is headquartered in Zurich, Switzerland.

How the Company Makes Money

Chubb generates revenue primarily through the underwriting of insurance policies, which involves collecting premiums from policyholders in exchange for coverage against specified risks. The company has several key revenue streams, including commercial lines, personal lines, and specialty insurance products. Additionally, Chubb earns income from investment returns on the premiums collected, as these funds are typically invested in various financial instruments until claims need to be paid out. Significant partnerships with brokers, agents, and other distribution channels also enhance Chubb's market reach and contribute to its earnings. The company's strong reputation and extensive global presence further enable it to attract a diverse clientele, thereby bolstering its revenue generation capabilities.

Chubb Financial Statement Overview

Summary

Chubb demonstrates strong financial health with consistent profitability and efficient operations. The income statement shows strong profitability with a net profit margin around 16% to 18%. The balance sheet is robust with a low debt-to-equity ratio of 0.22, and cash flow management is effective despite a negative free cash flow growth rate.

Income Statement

Chubb's income statement shows strong profitability with a consistent net profit margin around 16% to 18% over the years. The TTM (Trailing-Twelve-Months) revenue growth rate is modest at 1.57%, indicating stable revenue generation. The EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the slight decline in gross profit margin from 2024 to TTM suggests some pressure on cost management.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.22 in TTM, indicating prudent financial leverage. Return on equity is strong at 13.89%, showcasing effective use of equity capital. The equity ratio is solid, reflecting a stable financial structure. However, the slight increase in debt levels over the years warrants monitoring.

Cash Flow

Chubb's cash flow statement reveals a strong operating cash flow to net income ratio of 9.34 in TTM, indicating excellent cash generation relative to earnings. Free cash flow to net income ratio remains stable at 1.0, reflecting consistent cash flow management. However, the negative free cash flow growth rate in TTM suggests potential challenges in maintaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.66B	56.15B	50.13B	42.98B	40.77B	36.05B
Gross Profit	15.74B	16.17B	13.84B	10.83B	11.33B	36.05B
EBITDA	12.55B	12.52B	10.51B	7.34B	10.57B	4.97B
Net Income	9.20B	9.27B	9.03B	5.25B	8.53B	3.53B
Balance Sheet
Total Assets	261.56B	246.55B	230.68B	199.02B	200.05B	190.77B
Cash, Cash Equivalents and Short-Term Investments	40.37B	39.19B	33.79B	25.79B	97.91B	96.79B
Total Debt	14.98B	15.18B	14.49B	14.88B	16.17B	14.95B
Total Liabilities	187.12B	178.15B	166.99B	148.50B	140.34B	131.33B
Stockholders Equity	69.39B	64.02B	59.51B	50.52B	59.71B	59.44B
Cash Flow
Free Cash Flow	14.00B	16.18B	12.63B	11.26B	11.15B	9.79B
Operating Cash Flow	14.00B	16.18B	12.63B	11.26B	11.15B	9.79B
Investing Cash Flow	-11.48B	-13.92B	-7.65B	-5.65B	-6.66B	-7.52B
Financing Cash Flow	-2.88B	-2.18B	-4.49B	-5.14B	-4.41B	-2.08B

Chubb Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 282.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CB, the sentiment is Positive. The current price of 282.25 is above the 20-day moving average (MA) of 276.82, above the 50-day MA of 273.40, and above the 200-day MA of 278.16, indicating a bullish trend. The MACD of 1.42 indicates Negative momentum. The RSI at 62.38 is Neutral, neither overbought nor oversold. The STOCH value of 86.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CB.

Chubb Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRV	81 Outperform	$62.25B	12.23	17.77%	1.54%	8.54%	43.51%
CB	80 Outperform	$111.46B	12.33	14.10%	1.34%	6.74%	-4.05%
PGR	78 Outperform	$143.27B	13.76	32.00%	1.98%	21.50%	51.86%
WRB	77 Outperform	$28.83B	17.30	18.94%	1.75%	11.41%	15.32%
ALL	77 Outperform	$55.67B	9.94	24.24%	1.83%	9.81%	94.71%
MKL	73 Outperform	$24.05B	11.46	16.24%	―	1.66%	8.51%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%