CNO FINANCIAL GROUP INC (CNO) Stock Fundamental Analysis
NYSE:CNO - New York Stock Exchange, Inc. - US12621E1038 - Common Stock - Currency: USD
Overall CNO gets a fundamental rating of 4 out of 10. We evaluated CNO against 143 industry peers in the Insurance industry. While CNO is still in line with the averages on profitability rating, there are concerns on its financial health. CNO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CNO had positive earnings in the past year.
In the past year CNO had a positive cash flow from operations.
CNO had positive earnings in each of the past 5 years.
In the past 5 years CNO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.07%, CNO is doing worse than 60.14% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.17%, CNO is in the better half of the industry, outperforming 67.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 16.17% | ||
| ROIC | N/A |
ROA(3y)1.25%
ROA(5y)1.24%
ROE(3y)21.43%
ROE(5y)16.13%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 8.93%, CNO is in line with its industry, outperforming 57.34% of the companies in the same industry.
CNO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.41%, CNO is in the better half of the industry, outperforming 69.93% of the companies in the same industry.
CNO's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.41% | ||
| PM (TTM) | 8.93% | ||
| GM | N/A |
OM growth 3Y-3.08%
OM growth 5Y9.46%
PM growth 3Y-13.73%
PM growth 5Y-2.56%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, CNO has less shares outstanding
The number of shares outstanding for CNO has been reduced compared to 5 years ago.
The debt/assets ratio for CNO is higher compared to a year ago.
2.2 Solvency
CNO has a debt to FCF ratio of 7.20. This is a slightly negative value and a sign of low solvency as CNO would need 7.20 years to pay back of all of its debts.
The Debt to FCF ratio of CNO (7.20) is worse than 69.23% of its industry peers.
CNO has a Debt/Equity ratio of 1.81. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CNO (1.81) is worse than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
CNO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.30%, which is quite impressive.
The Earnings Per Share has been growing by 16.49% on average over the past years. This is quite good.
CNO shows a small growth in Revenue. In the last year, the Revenue has grown by 7.33%.
The Revenue has been growing slightly by 2.35% on average over the past years.
EPS 1Y (TTM)28.3%
EPS 3Y12.53%
EPS 5Y16.49%
EPS Q2Q%11.02%
Revenue 1Y (TTM)7.33%
Revenue growth 3Y3.34%
Revenue growth 5Y2.35%
Sales Q2Q%-6.26%
3.2 Future
CNO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.92% yearly.
Based on estimates for the next years, CNO will show a small growth in Revenue. The Revenue will grow by 3.30% on average per year.
EPS Next Y-3.44%
EPS Next 2Y2.87%
EPS Next 3Y5.92%
EPS Next 5YN/A
Revenue Next Year3.87%
Revenue Next 2Y3.36%
Revenue Next 3Y3.3%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.93 indicates a reasonable valuation of CNO.
Compared to the rest of the industry, the Price/Earnings ratio of CNO indicates a somewhat cheap valuation: CNO is cheaper than 68.53% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CNO to the average of the S&P500 Index (29.35), we can say CNO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.28, the valuation of CNO can be described as reasonable.
CNO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CNO is cheaper than 61.54% of the companies in the same industry.
CNO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 10.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNO indicates a somewhat cheap valuation: CNO is cheaper than 62.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.37 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y2.87%
EPS Next 3Y5.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.61%, CNO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.10, CNO has a dividend in line with its industry peers.
CNO's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of CNO is nicely growing with an annual growth rate of 8.19%!
CNO has paid a dividend for at least 10 years, which is a reliable track record.
CNO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.19%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
16.76% of the earnings are spent on dividend by CNO. This is a low number and sustainable payout ratio.
The dividend of CNO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.76%
EPS Next 2Y2.87%
EPS Next 3Y5.92%
39.62
-0.08 (-0.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners96.17%
Inst Owner Change-2.6%
Ins Owners2.35%
Ins Owner Change5.87%
Market Cap4.00B
Analysts69.09
Price Target44.37 (11.99%)
Short Float %2.29%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend0.64
Dividend Growth(5Y)8.19%
DP16.76%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.77%
Min EPS beat(2)22.13%
Max EPS beat(2)33.4%
EPS beat(4)3
Avg EPS beat(4)20.52%
Min EPS beat(4)-20.49%
Max EPS beat(4)47.04%
EPS beat(8)5
Avg EPS beat(8)12.58%
EPS beat(12)7
Avg EPS beat(12)12.69%
EPS beat(16)11
Avg EPS beat(16)14.57%
Revenue beat(2)2
Avg Revenue beat(2)15.81%
Min Revenue beat(2)11.94%
Max Revenue beat(2)19.67%
Revenue beat(4)4
Avg Revenue beat(4)17.14%
Min Revenue beat(4)11.94%
Max Revenue beat(4)22.37%
Revenue beat(8)8
Avg Revenue beat(8)14.24%
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)5.67%
PT rev (3m)9.85%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)0.8%
EPS NY rev (1m)0.49%
EPS NY rev (3m)1.51%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 10.28 | ||
| P/S | 0.88 | ||
| P/FCF | 6.37 | ||
| P/OCF | 6.37 | ||
| P/B | 1.6 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.99
EY10.07%
EPS(NY)3.85
Fwd EY9.72%
FCF(TTM)6.22
FCFY15.7%
OCF(TTM)6.22
OCFY15.7%
SpS44.86
BVpS24.77
TBVpS24.77
PEG (NY)N/A
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 16.17% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 17.41% | ||
| PM (TTM) | 8.93% | ||
| GM | N/A | ||
| FCFM | 13.87% |
ROA(3y)1.25%
ROA(5y)1.24%
ROE(3y)21.43%
ROE(5y)16.13%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)2.15%
ROCE(5y)1.99%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-3.08%
OM growth 5Y9.46%
PM growth 3Y-13.73%
PM growth 5Y-2.56%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 7.2 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 155.37% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)148.25%
Profit Quality(5y)158.67%
High Growth Momentum
Growth
EPS 1Y (TTM)28.3%
EPS 3Y12.53%
EPS 5Y16.49%
EPS Q2Q%11.02%
EPS Next Y-3.44%
EPS Next 2Y2.87%
EPS Next 3Y5.92%
EPS Next 5YN/A
Revenue 1Y (TTM)7.33%
Revenue growth 3Y3.34%
Revenue growth 5Y2.35%
Sales Q2Q%-6.26%
Revenue Next Year3.87%
Revenue Next 2Y3.36%
Revenue Next 3Y3.3%
Revenue Next 5YN/A
EBIT growth 1Y22.44%
EBIT growth 3Y0.16%
EBIT growth 5Y12.04%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y7.69%
FCF growth 3Y1.61%
FCF growth 5Y-2.06%
OCF growth 1Y7.69%
OCF growth 3Y1.61%
OCF growth 5Y-2.06%