CNA FINANCIAL CORP (CNA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNA - US1261171003 - Common Stock
46.57 USD
+0.19 (+0.41%)
46.7 USD
+0.13 (+0.28%)
We assign a fundamental rating of 3 out of 10 to CNA. CNA was compared to 147 industry peers in the Insurance industry. CNA may be in some trouble as it scores bad on both profitability and health. CNA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CNA had positive earnings in the past year.
CNA had a positive operating cash flow in the past year.
CNA had positive earnings in each of the past 5 years.
In the past 5 years CNA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.43%, CNA is in line with its industry, outperforming 41.50% of the companies in the same industry.
CNA has a Return On Equity (8.81%) which is comparable to the rest of the industry.
CNA has a Return On Invested Capital (1.60%) which is in line with its industry peers.
CNA had an Average Return On Invested Capital over the past 3 years of 1.62%. This is significantly below the industry average of 14.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 8.81% | ||
| ROIC | 1.6% |
ROA(3y)1.47%
ROA(5y)1.46%
ROE(3y)9.76%
ROE(5y)8.79%
ROIC(3y)1.62%
ROIC(5y)1.58%
1.3 Margins
With a Profit Margin value of 6.71%, CNA perfoms like the industry average, outperforming 40.14% of the companies in the same industry.
In the last couple of years the Profit Margin of CNA has declined.
CNA has a worse Operating Margin (9.39%) than 63.95% of its industry peers.
In the last couple of years the Operating Margin of CNA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.39% | ||
| PM (TTM) | 6.71% | ||
| GM | N/A |
OM growth 3Y-10.7%
OM growth 5Y-6.14%
PM growth 3Y-12.24%
PM growth 5Y-6.19%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
CNA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CNA has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for CNA remains at a similar level compared to 5 years ago.
Compared to 1 year ago, CNA has an improved debt to assets ratio.
2.2 Solvency
CNA has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.37, CNA is in the better half of the industry, outperforming 61.22% of the companies in the same industry.
CNA has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
CNA has a Debt to Equity ratio (0.26) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | N/A |
ROIC/WACC0.21
WACC7.75%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.24% over the past year.
CNA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.07% yearly.
Looking at the last year, CNA shows a small growth in Revenue. The Revenue has grown by 5.41% in the last year.
CNA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.71% yearly.
EPS 1Y (TTM)2.24%
EPS 3Y5.97%
EPS 5Y6.07%
EPS Q2Q%38.89%
Revenue 1Y (TTM)5.41%
Revenue growth 3Y6.22%
Revenue growth 5Y5.71%
Sales Q2Q%32.32%
3.2 Future
Based on estimates for the next years, CNA will show a small growth in Earnings Per Share. The EPS will grow by 4.84% on average per year.
The Revenue is expected to decrease by -52.08% on average over the next years. This is quite bad
EPS Next Y2.68%
EPS Next 2Y0.29%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue Next Year-81.08%
Revenue Next 2Y-52.08%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.30, the valuation of CNA can be described as reasonable.
68.03% of the companies in the same industry are more expensive than CNA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.56. CNA is valued rather cheaply when compared to this.
CNA is valuated reasonably with a Price/Forward Earnings ratio of 9.61.
CNA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CNA is cheaper than 61.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, CNA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 9.61 |
4.2 Price Multiples
CNA's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CNA is valued a bit cheaper than the industry average as 72.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.99 | ||
| EV/EBITDA | 10.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.47
PEG (5Y)1.53
EPS Next 2Y0.29%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
CNA has a Yearly Dividend Yield of 3.97%.
Compared to an average industry Dividend Yield of 2.64, CNA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, CNA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
5.2 History
The dividend of CNA has a limited annual growth rate of 2.00%.
CNA has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CNA decreased recently.
Dividend Growth(5Y)2%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CNA pays out 104.41% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CNA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP104.41%
EPS Next 2Y0.29%
EPS Next 3Y4.84%
46.57
+0.19 (+0.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners100.15%
Inst Owner Change0.46%
Ins Owners0.43%
Ins Owner Change-0.03%
Market Cap12.61B
Revenue(TTM)14.85B
Net Income(TTM)997.00M
Analysts46.67
Price Target36.47 (-21.69%)
Short Float %0.85%
Short Ratio6.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend3.78
Dividend Growth(5Y)2%
DP104.41%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.36%
Min EPS beat(2)12.51%
Max EPS beat(2)26.2%
EPS beat(4)3
Avg EPS beat(4)7.2%
Min EPS beat(4)-10.54%
Max EPS beat(4)26.2%
EPS beat(8)4
Avg EPS beat(8)4.9%
EPS beat(12)6
Avg EPS beat(12)3.56%
EPS beat(16)7
Avg EPS beat(16)2.83%
Revenue beat(2)0
Avg Revenue beat(2)-11.43%
Min Revenue beat(2)-11.64%
Max Revenue beat(2)-11.21%
Revenue beat(4)1
Avg Revenue beat(4)-8.6%
Min Revenue beat(4)-12.81%
Max Revenue beat(4)1.29%
Revenue beat(8)2
Avg Revenue beat(8)-9.91%
Revenue beat(12)3
Avg Revenue beat(12)-8.66%
Revenue beat(16)6
Avg Revenue beat(16)-1.53%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.88%
EPS NY rev (1m)3.16%
EPS NY rev (3m)2.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 9.61 | ||
| P/S | 0.85 | ||
| P/FCF | 4.99 | ||
| P/OCF | 4.81 | ||
| P/B | 1.11 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 10.66 |
EPS(TTM)5.01
EY10.76%
EPS(NY)4.85
Fwd EY10.41%
FCF(TTM)9.34
FCFY20.05%
OCF(TTM)9.69
OCFY20.81%
SpS54.86
BVpS41.83
TBVpS41.28
PEG (NY)3.47
PEG (5Y)1.53
Graham Number68.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 8.81% | ||
| ROCE | 2.01% | ||
| ROIC | 1.6% | ||
| ROICexc | 1.61% | ||
| ROICexgc | 1.99% | ||
| OM | 9.39% | ||
| PM (TTM) | 6.71% | ||
| GM | N/A | ||
| FCFM | 17.02% |
ROA(3y)1.47%
ROA(5y)1.46%
ROE(3y)9.76%
ROE(5y)8.79%
ROIC(3y)1.62%
ROIC(5y)1.58%
ROICexc(3y)1.63%
ROICexc(5y)1.59%
ROICexgc(3y)2.02%
ROICexgc(5y)1.95%
ROCE(3y)2.04%
ROCE(5y)2%
ROICexgc growth 3Y-4.48%
ROICexgc growth 5Y-1.5%
ROICexc growth 3Y-5.11%
ROICexc growth 5Y-2.57%
OM growth 3Y-10.7%
OM growth 5Y-6.14%
PM growth 3Y-12.24%
PM growth 5Y-6.19%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 139.13% | ||
| Cap/Sales | 0.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 179.29% | ||
| Profit Quality | 253.46% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.75%
ROIC/WACC0.21
Cap/Depr(3y)122.35%
Cap/Depr(5y)90.7%
Cap/Sales(3y)0.59%
Cap/Sales(5y)0.44%
Profit Quality(3y)266.53%
Profit Quality(5y)243.99%
High Growth Momentum
Growth
EPS 1Y (TTM)2.24%
EPS 3Y5.97%
EPS 5Y6.07%
EPS Q2Q%38.89%
EPS Next Y2.68%
EPS Next 2Y0.29%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue 1Y (TTM)5.41%
Revenue growth 3Y6.22%
Revenue growth 5Y5.71%
Sales Q2Q%32.32%
Revenue Next Year-81.08%
Revenue Next 2Y-52.08%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-21.9%
EBIT growth 3Y-5.15%
EBIT growth 5Y-0.78%
EBIT Next Year-80.57%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y14.92%
FCF growth 3Y7.9%
FCF growth 5Y17.32%
OCF growth 1Y15.2%
OCF growth 3Y8.79%
OCF growth 5Y17.66%
CNA FINANCIAL CORP / CNA FAQ
What is the ChartMill fundamental rating of CNA FINANCIAL CORP (CNA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to CNA.
What is the valuation status for CNA stock?
ChartMill assigns a valuation rating of 5 / 10 to CNA FINANCIAL CORP (CNA). This can be considered as Fairly Valued.
What is the profitability of CNA stock?
CNA FINANCIAL CORP (CNA) has a profitability rating of 3 / 10.
What is the financial health of CNA FINANCIAL CORP (CNA) stock?
The financial health rating of CNA FINANCIAL CORP (CNA) is 3 / 10.
Is the dividend of CNA FINANCIAL CORP sustainable?
The dividend rating of CNA FINANCIAL CORP (CNA) is 6 / 10 and the dividend payout ratio is 104.41%.