Chubb logged a -1.7% change during today's morning session, and is now trading at a price of $186.52 per share.
Over the last year, Chubb logged a -2.1% change, with its stock price reaching a high of $231.37 and a low of $173.78. Over the same period, the stock underperformed the S&P 500 index by -17.0%. As of April 2023, the company's 50-day average price was $196.12. Chubb Limited provides insurance and reinsurance products worldwide. Based in Zurich, Switzerland, the large-cap Finance company has 34,000 full time employees. Chubb has offered a 1.7% dividend yield over the last 12 months.
The Business Runs With Low Leverage Levels:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $34,186 | $35,994 | $40,963 | $43,124 |
| Interest Income (MM) | -$552 | -$516 | -$492 | -$570 |
| Net Margins | 13.03% | 9.82% | 20.85% | 12.32% |
| Net Income (MM) | $4,454 | $3,533 | $8,539 | $5,313 |
| Depreciation & Amort. (MM) | -$305 | -$290 | -$287 | -$285 |
| Earnings Per Share | $9.71 | $7.79 | $19.27 | $12.53 |
| EPS Growth | n/a | -19.77% | 147.37% | -34.98% |
| Diluted Shares (MM) | 459 | 453 | 443 | 414 |
| Free Cash Flow (MM) | $6,342 | $9,785 | $11,149 | $11,243 |
| Long Term Debt (MM) | $13,559 | $14,948 | $15,169 | $14,402 |
| Net Debt / EBITDA | 2.18 | 2.66 | 1.37 | 1.73 |
Chubb benefits from growing revenues and no capital expenditures, a pattern of improving cash flows, and low leverage. The company's financial statements show decent net margins with a stable trend and positive EPS growth.
Chubb's Valuation Is in Line With Its Sector Averages:
Chubb has a trailing twelve month P/E ratio of 15.7, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of $20.19, the company has a forward P/E ratio of 9.7. According to the 15.8% compound average growth rate of Chubb's historical and projected earnings per share, the company's PEG ratio is 0.99. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 9.7%. On this basis, the company's PEG ratio is 1.61. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Chubb in terms of its equity because its P/B ratio is 1.46 while the sector average is 1.57. The company's shares are currently trading -1.0% below their Graham number.
Chubb Has an Analyst Consensus of Strong Upside Potential:
The 18 analysts following Chubb have set target prices ranging from $192.0 to $270.0 per share, for an average of $238.25 with a buy rating. As of April 2023, the company is trading -17.7% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Chubb has a very low short interest because 0.5% of the company's shares are sold short. Institutions own 90.3% of the company's shares, and the insider ownership rate stands at 0.27%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 9% stake in the company is worth $7,295,608,729.
