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Chubb Piotroski F-Score

: 5 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Chubb has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Chubb's Piotroski F-Score or its related term are showing as below:

CB' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 5   Max: 9
Current: 5

During the past 13 years, the highest Piotroski F-Score of Chubb was 9. The lowest was 1. And the median was 5.


Chubb Piotroski F-Score Historical Data

The historical data trend for Chubb's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Chubb Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 8.00 4.00 8.00

Chubb Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 8.00 8.00 7.00 5.00

Competitive Comparison

For the Insurance - Property & Casualty subindustry, Chubb's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Chubb Piotroski F-Score Distribution

For the Insurance industry and Financial Services sector, Chubb's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Chubb's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 1833 + 2141 + 1974 + 1215 = $7,163 Mil.
Cash Flow from Operations was 3322 + 2600 + 2440 + 2720 = $11,082 Mil.
Revenue was 10845 + 10483 + 9669 + 9941 = $40,938 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(197174 + 199054 + 200054 + 197990 + 195651) / 5 = $197984.6 Mil.
Total Assets at the begining of this year (Jun21) was $197,174 Mil.
Long-Term Debt & Capital Lease Obligation was $14,311 Mil.
Total Assets was $195,651 Mil.
Total Liabilities was $143,984 Mil.
Net Income was 1194 + 2418 + 2300 + 2265 = $8,177 Mil.

Revenue was 9464 + 9848 + 9971 + 9664 = $38,947 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(181474 + 187786 + 190774 + 191977 + 197174) / 5 = $189837 Mil.
Total Assets at the begining of last year (Jun20) was $181,474 Mil.
Long-Term Debt & Capital Lease Obligation was $14,954 Mil.
Total Assets was $197,174 Mil.
Total Liabilities was $137,112 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Chubb's current Net Income (TTM) was 7,163. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Chubb's current Cash Flow from Operations (TTM) was 11,082. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=7163/197174
=0.03632832

ROA (Last Year)=Net Income/Total Assets (Jun20)
=8177/181474
=0.0450588

Chubb's return on assets of this year was 0.03632832. Chubb's return on assets of last year was 0.0450588. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Chubb's current Net Income (TTM) was 7,163. Chubb's current Cash Flow from Operations (TTM) was 11,082. ==> 11,082 > 7,163 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=14311/197984.6
=0.0722834

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=14954/189837
=0.07877284

Chubb's gearing of this year was 0.0722834. Chubb's gearing of last year was 0.07877284. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Jun22)=Total Assets/Total Liabilities
=195651/143984
=1.35883848

Current Ratio (Last Year: Jun21)=Total Assets/Total Liabilities
=197174/137112
=1.43805064

Chubb's current ratio of this year was 1.35883848. Chubb's current ratio of last year was 1.43805064. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Chubb's number of shares in issue this year was 425.418. Chubb's number of shares in issue last year was 447.952. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=7163/40938
=0.17497191

Net Margin (Last Year: TTM)=Net Income/Revenue
=8177/38947
=0.20995199

Chubb's net margin of this year was 0.17497191. Chubb's net margin of last year was 0.20995199. ==> Last year's net margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=40938/197174
=0.20762372

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=38947/181474
=0.21461477

Chubb's asset turnover of this year was 0.20762372. Chubb's asset turnover of last year was 0.21461477. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+1+0+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Chubb has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Chubb  (NYSE:CB) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Chubb Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Chubb's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Chubb Business Description

Chubb logo
Traded in Other Exchanges
Address
Baerengasse 32, Zurich, CHE, CH-8001
ACE acquired Chubb in the first quarter of 2016 and assumed the Chubb name. The combination makes the new Chubb one of the largest domestic property and casualty insurers, with operations in 54 countries spanning commercial and personal P&C insurance, reinsurance, and life insurance.
Executives
Bonanno Kathleen director 3000 TANNERY WAY SANTA CLARA CA 95054
Enns Peter C. officer: Executive Vice President and* THE CHUBB BUILDING 17 WOODBOURNE AVENUE HAMILTON D0 HM 08
Tellez Luis director DESC, S.A. DE C.V PASEO DE LOS TAMARINDOS TORRE PISO 32 CUAJIMALPA O5 05120
Townsend Frances F director C/O BAKER BOTTS LLP THE WARNER, 1299 PENNSYLVANIA AVE., NW WASHINGTON DC 20004-2400
Hugin Robert J director C/O THE MEDICINES CO 8 CAMPUS DR PARSIPPANY NJ 07054
Hagan Annmarie T officer: Chief Accounting Officer TWO LIBERTY PLACE 1601 CHESTNUT STREET PHILADELPHIA PA 19192
Ortega Juan Luis officer: Executive Vice President* CHUBB AVENUE OF THE AMERICAS NEW YORK NY 10036
Andrade Juan C officer: Executive Vice President* THE HARTFORD ONE HARTFORD PLAZA HARTFORD CT 06155
Krump Paul J officer: Executive Vice President* C/O CHUBB & SON 15 MOUNTAIN VIEW RD P O BOX161 WARREN NJ 07061-1615
Kellner Lawrence W director 1600 SMITH ST. HQSEO HOUSTON TX 77002
Zimmerman James M director C/O FOSSIL GROUP, INC. 901 S. CENTRAL EXPRESSWAY RICHARDSON TX 75080
Cash James I director C/O WINSTAR COMMUNICATIONS INC 685 THIRD AVENUE NEW YORK NY 10017
Burke Sheila P director WELLPOINT, INC 120 MONUMENT CIRCLE INDIANAPOLIS IN 46240
Sidwell David H director MORGAN STANLEY 1585 BROADWAY NEW YORK NY 10036
Edwardson John A director P O BOX 66100-WHQLD CHICAGO IL 60666

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