Could The Market Be Wrong About Chubb Limited (NYSE:CB) Given Its Attractive Financial Prospects?

Simply Wall St.12-13

Chubb (NYSE:CB) has had a rough three months with its share price down 4.7%. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially ...

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But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/insurance/nyse-cb/chubb/news/could-the-market-be-wrong-about-chubb-limited-nysecb-given-i\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Could The Market Be Wrong About Chubb Limited (NYSE:CB) Given Its Attractive Financial Prospects?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCould The Market Be Wrong About Chubb Limited (NYSE:CB) Given Its Attractive Financial Prospects?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-13 21:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/insurance/nyse-cb/chubb/news/could-the-market-be-wrong-about-chubb-limited-nysecb-given-i><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Chubb (NYSE:CB) has had a rough three months with its share price down 4.7%.   But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/insurance/nyse-cb/chubb/news/could-the-market-be-wrong-about-chubb-limited-nysecb-given-i\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0256863811.USD","symbol_name":"ALLIANZ US EQUITY \"A\" INC","start_time":0,"source_url":"https://simplywall.st/stocks/us/insurance/nyse-cb/chubb/news/could-the-market-be-wrong-about-chubb-limited-nysecb-given-i","article_id":"2491309242","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/7214000-choice1-main-header/1585186744718"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2491309242","pubTimestamp":1734096332,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Chubb (NYSE:CB) has had a rough three months with its share price down 4.7%. But if you pay close attention, you might...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","BK4107":"财产与意外伤害保险","CB":"安达保险","NYSE":"纽交所","BK4585":"ETF&股票定投概念","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","BK4588":"碎股"},"translate_title":"鉴于集宝有限公司（纽约证券交易所股票代码：CB）诱人的财务前景，市场对其的看法可能是错误的吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CB":1,"NYSE":1},"content_text":"Chubb (NYSE:CB) has had a rough three months with its share price down 4.7%.   But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health.     In this article, we decided to focus on Chubb's  ROE.    Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital.  In short, ROE shows the profit each dollar generates with respect to its shareholder investments.  Check out our latest analysis for Chubb  How To Calculate Return On Equity?  The formula for ROE is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Chubb is:15% = US$10b ÷ US$70b (Based on the trailing twelve months to September 2024). The 'return' refers to a company's earnings over the last year.  So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.15.   What Has ROE Got To Do With Earnings Growth?  We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  Based on how much of its profits the company chooses to reinvest or \"retain\", we are then able to evaluate a company's future ability to generate profits.  Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.  Chubb's Earnings Growth And 15% ROE  To start with, Chubb's ROE looks acceptable.   Further, the company's ROE is similar to the industry average of 14%.   This certainly adds some context to Chubb's moderate 18% net income growth seen over the past five years.     Next, on comparing with the industry net income growth, we found that Chubb's growth is quite high when compared to the industry average growth of 13% in the same period, which is great to see.   NYSE:CB Past Earnings Growth December 13th 2024 Earnings growth is a huge factor in stock valuation.  It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline).  By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await.    If you're wondering about Chubb's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.    Is Chubb Using Its Retained Earnings Effectively?    Chubb has a low three-year median payout ratio of 17%, meaning that the company retains the remaining 83% of its profits. This suggests that the management is reinvesting most of the profits to grow the business.     Besides, Chubb has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders.      Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 17%.   As a result, Chubb's ROE is not expected to change by much either, which we inferred from the analyst estimate of 13% for future ROE.      Conclusion    Overall, we are quite pleased with Chubb's performance.      Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings.       That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth.     To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2491309242"}