CB : NYSE : Financial
$125.65 up 1.26 | 1.01%
Today's Range: 124.69 - 126.12
Avg. Daily Volume: 1,249,600
09/30/16 - 4:01 PM ET

Financial Analysis


CHUBB LTD's gross profit margin for the second quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased.

At the same time, stockholders' equity ("net worth") has greatly increased by 59.79% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)7919.05088.0
EBITDA ($mil)0.00.0
EBIT ($mil)1120.01153.0
Net Income ($mil)726.0942.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)8511.05158.0
Total Assets ($mil)160203.099840.0
Total Debt ($mil)14844.06568.0
Equity ($mil)47226.029555.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin14.1422.66
EBITDA Margin0.00.0
Operating Margin14.1422.66
Sales Turnover0.150.19
Return on Assets1.482.96
Return on Equity5.0310.02
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.240.18
Interest Expense153.071.0
Interest Coverage7.3216.24


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)465.01323.81
Div / share0.690.67
EPS1.542.86
Book value / share101.5691.27
Institutional Own % n/a n/a
Avg Daily Volume1301269.01549866.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 42.44 for the Insurance industry and a discount compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 1.25 indicates a significant discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 1.57. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, CHUBB LTD proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CB 20.52 Peers 42.44   CB 11.92 Peers 11.90

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CB is trading at a significant discount to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CB is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CB 12.31 Peers 14.88   CB 1.81 Peers 2.00

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

CB is trading at a discount to its peers.

 

Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

CB trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CB 1.25 Peers 1.57   CB -30.15 Peers -5.86

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CB is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CB is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CB 2.44 Peers 1.41   CB 24.94 Peers 4.35

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

CB is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

CB has a sales growth rate that significantly exceeds its peers.

 

 

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