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CNFINANCE HOLDINGS LTD (CNF) Stock Fundamental Analysis

NYSE:CNF - New York Stock Exchange, Inc. - US18979T1051 - ADR - Currency: USD

0.985  -0.03 (-2.96%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to CNF. CNF was compared to 101 industry peers in the Financial Services industry. Both the profitability and financial health of CNF have multiple concerns. CNF is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year CNF was profitable.
In the past 5 years CNF has always been profitable.
CNF had a positive operating cash flow in 4 of the past 5 years.
CNF Yearly Net Income VS EBIT VS OCF VS FCFCNF Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

1.2 Ratios

The Return On Assets of CNF (0.75%) is worse than 63.37% of its industry peers.
CNF has a Return On Equity of 3.06%. This is in the lower half of the industry: CNF underperforms 71.29% of its industry peers.
CNF's Return On Invested Capital of 0.73% is on the low side compared to the rest of the industry. CNF is outperformed by 65.35% of its industry peers.
CNF had an Average Return On Invested Capital over the past 3 years of 0.86%. This is significantly below the industry average of 7.60%.
Industry RankSector Rank
ROA 0.75%
ROE 3.06%
ROIC 0.73%
ROA(3y)0.8%
ROA(5y)1.49%
ROE(3y)3.12%
ROE(5y)5.44%
ROIC(3y)0.86%
ROIC(5y)1.68%
CNF Yearly ROA, ROE, ROICCNF Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

1.3 Margins

Looking at the Profit Margin, with a value of 8.66%, CNF is doing worse than 60.40% of the companies in the same industry.
In the last couple of years the Profit Margin of CNF has declined.
CNF has a Operating Margin of 10.49%. This is in the lower half of the industry: CNF underperforms 60.40% of its industry peers.
CNF's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 40.77%, CNF is doing good in the industry, outperforming 62.38% of the companies in the same industry.
In the last couple of years the Gross Margin of CNF has declined.
Industry RankSector Rank
OM 10.49%
PM (TTM) 8.66%
GM 40.77%
OM growth 3Y6.66%
OM growth 5Y-16.17%
PM growth 3Y16.76%
PM growth 5Y-14.93%
GM growth 3Y-1.34%
GM growth 5Y-5.15%
CNF Yearly Profit, Operating, Gross MarginsCNF Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNF is destroying value.
CNF has a worse debt/assets ratio than last year.
CNF Yearly Shares OutstandingCNF Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M 40M 50M
CNF Yearly Total Debt VS Total AssetsCNF Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.2 Solvency

Based on the Altman-Z score of 0.49, we must say that CNF is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CNF (0.49) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.22 is on the high side and indicates that CNF has dependencies on debt financing.
The Debt to Equity ratio of CNF (2.22) is worse than 68.32% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF N/A
Altman-Z 0.49
ROIC/WACC0.14
WACC5.09%
CNF Yearly LT Debt VS Equity VS FCFCNF Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 2.18 indicates that CNF has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.18, CNF is doing good in the industry, outperforming 77.23% of the companies in the same industry.
A Quick Ratio of 2.18 indicates that CNF has no problem at all paying its short term obligations.
CNF has a better Quick ratio (2.18) than 78.22% of its industry peers.
Industry RankSector Rank
Current Ratio 2.18
Quick Ratio 2.18
CNF Yearly Current Assets VS Current LiabilitesCNF Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 1000.00% over the past year.
The Earnings Per Share has been growing slightly by 4.10% on average over the past years.
Looking at the last year, CNF shows a very strong growth in Revenue. The Revenue has grown by 412.79%.
The Revenue has been growing by 23.19% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)1000%
EPS 3Y122.4%
EPS 5Y4.1%
EPS Q2Q%N/A
Revenue 1Y (TTM)412.79%
Revenue growth 3Y84.01%
Revenue growth 5Y23.19%
Sales Q2Q%560.48%

3.2 Future

Based on estimates for the next years, CNF will show a very negative growth in Earnings Per Share. The EPS will decrease by -69.63% on average per year.
CNF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.63% yearly.
EPS Next Y-95.39%
EPS Next 2Y-69.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.22%
Revenue Next 2Y10.63%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
CNF Yearly Revenue VS EstimatesCNF Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
CNF Yearly EPS VS EstimatesCNF Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 3.28 indicates a rather cheap valuation of CNF.
Based on the Price/Earnings ratio, CNF is valued cheaper than 99.01% of the companies in the same industry.
CNF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
A Price/Forward Earnings ratio of 70.57 indicates a quite expensive valuation of CNF.
Based on the Price/Forward Earnings ratio, CNF is valued a bit more expensive than 77.23% of the companies in the same industry.
CNF is valuated expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 3.28
Fwd PE 70.57
CNF Price Earnings VS Forward Price EarningsCNF Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
CNF Per share dataCNF EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

CNF's earnings are expected to decrease with -69.63% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y-69.63%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for CNF!.
Industry RankSector Rank
Dividend Yield N/A

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CNFINANCE HOLDINGS LTD

NYSE:CNF (3/7/2025, 8:15:33 PM)

0.985

-0.03 (-2.96%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)08-27 2024-08-27/bmo
Earnings (Next)N/A N/A
Inst Owners18.9%
Inst Owner Change0.56%
Ins Owners1.34%
Ins Owner ChangeN/A
Market Cap67.55M
Analysts80
Price Target5.1 (417.77%)
Short Float %1.9%
Short Ratio1.77
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)807.59%
Min EPS beat(2)543.56%
Max EPS beat(2)1071.62%
EPS beat(4)4
Avg EPS beat(4)1242.82%
Min EPS beat(4)543.56%
Max EPS beat(4)2045.21%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-12.75%
Min Revenue beat(2)-18.7%
Max Revenue beat(2)-6.8%
Revenue beat(4)0
Avg Revenue beat(4)-8.55%
Min Revenue beat(4)-18.7%
Max Revenue beat(4)-2.7%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 3.28
Fwd PE 70.57
P/S 0.35
P/FCF N/A
P/OCF N/A
P/B 0.12
P/tB 0.12
EV/EBITDA N/A
EPS(TTM)0.3
EY30.46%
EPS(NY)0.01
Fwd EY1.42%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.85
BVpS8.08
TBVpS8.07
PEG (NY)N/A
PEG (5Y)0.8
Profitability
Industry RankSector Rank
ROA 0.75%
ROE 3.06%
ROCE 0.96%
ROIC 0.73%
ROICexc 0.83%
ROICexgc 0.98%
OM 10.49%
PM (TTM) 8.66%
GM 40.77%
FCFM N/A
ROA(3y)0.8%
ROA(5y)1.49%
ROE(3y)3.12%
ROE(5y)5.44%
ROIC(3y)0.86%
ROIC(5y)1.68%
ROICexc(3y)0.99%
ROICexc(5y)1.95%
ROICexgc(3y)1.14%
ROICexgc(5y)2.08%
ROCE(3y)1.11%
ROCE(5y)2.23%
ROICexcg growth 3Y-2.92%
ROICexcg growth 5Y-26.18%
ROICexc growth 3Y-6.15%
ROICexc growth 5Y-28.47%
OM growth 3Y6.66%
OM growth 5Y-16.17%
PM growth 3Y16.76%
PM growth 5Y-14.93%
GM growth 3Y-1.34%
GM growth 5Y-5.15%
F-ScoreN/A
Asset Turnover0.09
Health
Industry RankSector Rank
Debt/Equity 2.22
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.18
Quick Ratio 2.18
Altman-Z 0.49
F-ScoreN/A
WACC5.09%
ROIC/WACC0.14
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1000%
EPS 3Y122.4%
EPS 5Y4.1%
EPS Q2Q%N/A
EPS Next Y-95.39%
EPS Next 2Y-69.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)412.79%
Revenue growth 3Y84.01%
Revenue growth 5Y23.19%
Sales Q2Q%560.48%
Revenue Next Year8.22%
Revenue Next 2Y10.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y475.57%
EBIT growth 3Y96.26%
EBIT growth 5Y3.28%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A