CB : NYSE : Financial
$125.91 | %
Today's Range: 125.26 - 126.97
Avg. Daily Volume: 1,327,400
08/26/16 - 4:00 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
Interest Expense153.071.0
Interest Coverage7.3216.24

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)465.01323.81
Div / share0.690.67
Book value / share101.5691.27
Institutional Own % n/a n/a
Avg Daily Volume1359853.01658852.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 41.69 for the Insurance industry and a discount compared to the S&P 500 average of 25.30. Conducting a second comparison, its price-to-book ratio of 1.25 indicates a significant discount versus the S&P 500 average of 2.83 and a discount versus the industry average of 1.54. The price-to-sales ratio is above the S&P 500 average and well above 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CB 20.49 Peers 41.69   CB 11.90 Peers 10.09

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.


Premium. 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 premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
CB 12.27 Peers 14.37   CB 1.80 Peers 1.74

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

CB is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CB 1.25 Peers 1.54   CB -30.15 Peers -1.33

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CB 2.43 Peers 1.40   CB 24.94 Peers 3.17

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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