Chubb Ltd (CB) Stock Analysis
Chubb Ltd (CB) Stock Analysis
Analysis from 10-Q filed 2025-10-27. Data as of Q4 2025.
Overall Grade: F (Concerning)
Chubb Ltd faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 21.6% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 21.6% provides financial flexibility for growth and shareholder returns.
Explore Chubb Ltd: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Chubb Ltd earns N/A ROIC
Chubb Ltd's trailing-twelve-month ROIC of N/A (sector median: 7.3%). Source: 10-Q filed 2025-10-27.
| Metric | CB | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 7.3% |
| Return on Equity (ROE) | 14.9% | Adequate | Moderate equity returns |
Cash Flow: Chubb Ltd generates $12.8B FCF at 21.6% margin, positive NaN/8 quarters
Chubb Ltd generated $12.8B in free cash flow (TTM), a 21.6% FCF margin, a margin that ranks Bottom 50% in Financials. Operating cash flow exceeds net income by 1.2x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-27.
| Metric | CB | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 21.6% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $12.8B | Good | Positive cash generation |
| OCF/Net Income | 1.2x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Chubb Ltd at 0.0x leverage
Chubb Ltd's debt-to-equity ratio of 0.0x reflects conservative leverage. Net cash position of $971.0M provides financial flexibility. Source: 10-Q filed 2025-10-27.
| Metric | CB | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
| Net Cash Position | $971.0M | Excellent | Net cash positive |
Valuation: Chubb Ltd trades at 12.0x earnings
Chubb Ltd trades at a P/E of 12.0x. Free cash flow yield of 10.3% offers attractive cash returns relative to price.
| Metric | CB | Rating | Context |
|---|---|---|---|
| P/E Ratio | 12.0x | Adequate | Reasonable valuation |
| EV/Sales | 2.1x | Good | Attractive revenue multiple |
| FCF Yield | 10.3% | Excellent | Attractive cash return |
| Dividend Yield | 1.1% | Adequate | Growth focus over income |
Capital Allocation: Chubb Ltd returns 4.1% shareholder yield
Chubb Ltd's total shareholder yield is 4.1% (dividends 1.1% + buybacks 3.0%). Source: 10-Q filed 2025-10-27.
| Metric | CB | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 4.1% | Good | Dividend + buyback yield combined |
| Buyback Yield | 3.0% | Adequate | Active share repurchases |
| Total Capital Returned (TTM) | $5.2B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 21.6% | Bottom 50% | 1.0x below |
| Return on Equity (ROE) | 14.9% | Top 25% | 1.4x above |
| P/E Ratio | 12.0x | N/A | - |
Financial Scorecard
| Metric | CB | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 21.6% | Excellent | Bottom 50% of sector (median: 21.7%) |
| Debt to Equity Ratio | 2.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 12.0x | Adequate | Attractively valued |
| Free Cash Flow Yield | 10.3% | Excellent | High cash return |
Frequently Asked Questions
Q: What is Chubb Ltd's Return on Invested Capital (ROIC)?
Chubb Ltd (CB) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 7.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Chubb Ltd's Free Cash Flow Margin?
Chubb Ltd (CB) has a free cash flow margin of 21.6%, generating $12.8 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is Chubb Ltd stock overvalued or undervalued?
Chubb Ltd (CB) trades at a P/E ratio of 12.0x, which is above the sector median of N/A. The EV/Sales multiple is 2.1x. Free cash flow yield is 10.3%, which represents an attractive cash return to investors.
Q: Does Chubb Ltd pay a dividend?
Chubb Ltd (CB) currently pays a dividend yield of 1.1%. Including share buybacks, the total shareholder yield is 4.1%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is Chubb Ltd's revenue and earnings growth?
Chubb Ltd (CB) grew revenue by 6.5% year-over-year. Earnings per share increased by 13.2% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is Chubb Ltd buying back stock?
Chubb Ltd (CB) repurchased $3.7 billion of stock over the trailing twelve months. This represents a buyback yield of 3.0%.
Q: How does Chubb Ltd compare to competitors in Financials?
Compared to other companies in Financials, Chubb Ltd (CB) shows: ROIC of N/A is below the sector median of 7.3% (NaNx median). FCF margin of 21.6% trails the sector median of 21.7% (Bottom 49% of sector). These rankings are based on MetricDuck's analysis of all Financials companies with available SEC filings.
Q: What warning signs should I watch for with Chubb Ltd?
Chubb Ltd (CB) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-27. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.