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CB Chubb Limited - Fundamental Analysis

NEUTRAL
CB Stock | Fundamental Analysis & Investment Insights
NYSE Financial Services Insurance - Property & Casualty
Current Price
$310.06
Analyst Target
$311.09
+0.3% Upside
52W High
$315.08
52W Low
$252.16

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AI Analysis

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Confidence Score
78%
Analysis Accuracy
Chubb Limited's Advanced Deterministic Scorecard shows a weak Piotroski F-Score of 4/9, indicating marginal financial health, while the Altman Z-Score is astronomically high at 249004395827.2, signaling no distress risk. The stock trades near fair value with a current price of $310.06 versus a Graham Number of $313.3 and an intrinsic value estimate of $706.23, suggesting modest undervaluation on a defensive basis but significant upside potential if growth assumptions hold. Strong profitability metrics, consistent earnings beats, and solid ROE are offset by bearish insider activity and weak technical momentum. Relative to peers, CB exhibits lower valuation multiples but also slower revenue growth, supporting a hold rating.

Key Strengths

Exceptionally high Altman Z-Score indicates virtually no bankruptcy risk
Strong and consistent earnings growth with YoY EPS up 22.6% and a 3-year average earnings surprise of +10.5%
High profitability: ROE of 13.64%, operating margin of 25.62%, and profit margin of 16.44% exceed sector averages
Low debt burden with Debt/Equity ratio of 0.31, well below sector average of 1.07
Attractive valuation relative to sector: P/E of 12.95 vs. sector average of 24.59

Key Risks

Weak Piotroski F-Score of 4/9 suggests deteriorating financial health across several fundamental criteria
Bearish insider sentiment: 5 sell transactions totaling $17.92M in the last 6 months and no buys
Poor liquidity metrics: Current ratio of 0.38 and Quick ratio of 0.18 indicate potential short-term solvency concerns
Technical trend score of 10/100 reflects strong bearish momentum near 52-week high
Dividend strength rated very low at 25/100 despite low payout ratio, indicating limited yield appeal
AI Fair Value Estimate
Based on comprehensive analysis
$313.3
+1.0% above current price

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