Speaking of value names, have you looked at Chubb (tkr: CB)? 9x EV trailing Operating Cash Flow (“OCF”), 27% OCF margins and a 13% cash flow yield. Recurring revenue, technology-infused companies like Chubb will eventually enjoy a Valuation Makeover as we wrote in June 2019. Recall that ACE acquired Chubb in 2015 for $28B and took the Chubb name. ACE CEO Evan Greenberg (son of long-time former AIG CEO Maurice “Hank” Greenberg) has led the combined company as CEO since the acquisition closed. Greenberg has pushed Chubb to invest in automation and Advanced Analytics which has helped drive Operating Cash Flow growth and margin expansion (click HERE for our Chubb metric table). Access Chubb’s recent EPS call transcript HERE.
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