CNO FINANCIAL GROUP INC (CNO) Stock Fundamental Analysis
NYSE:CNO - New York Stock Exchange, Inc. - US12621E1038 - Common Stock - Currency: USD
CNO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 145 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CNO had positive earnings in the past year.
CNO had a positive operating cash flow in the past year.
In the past 5 years CNO has always been profitable.
Each year in the past 5 years CNO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CNO (0.82%) is worse than 60.00% of its industry peers.
CNO has a Return On Equity of 12.07%. This is in the better half of the industry: CNO outperforms 61.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 12.07% | ||
| 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
CNO's Profit Margin of 6.99% is in line compared to the rest of the industry. CNO outperforms 49.66% of its industry peers.
CNO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.63%, CNO is in the better half of the industry, outperforming 71.03% of the companies in the same industry.
CNO's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.63% | ||
| PM (TTM) | 6.99% | ||
| 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
The number of shares outstanding for CNO has been reduced compared to 1 year ago.
The number of shares outstanding for CNO has been reduced compared to 5 years ago.
CNO has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of CNO is 6.57, which is on the high side as it means it would take CNO, 6.57 years of fcf income to pay off all of its debts.
CNO has a Debt to FCF ratio of 6.57. This is in the lower half of the industry: CNO underperforms 66.90% of its industry peers.
A Debt/Equity ratio of 1.74 is on the high side and indicates that CNO has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.74, CNO is doing worse than 90.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 6.57 | ||
| 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 36.54%, which is quite impressive.
CNO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.49% yearly.
CNO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.10%.
The Revenue has been growing slightly by 2.35% on average over the past years.
EPS 1Y (TTM)36.54%
EPS 3Y12.53%
EPS 5Y16.49%
EPS Q2Q%51.92%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y3.34%
Revenue growth 5Y2.35%
Sales Q2Q%-13.18%
3.2 Future
The Earnings Per Share is expected to grow by 6.59% on average over the next years.
The Revenue is expected to grow by 3.66% on average over the next years.
EPS Next Y-4.14%
EPS Next 2Y3.85%
EPS Next 3Y6.23%
EPS Next 5Y6.59%
Revenue Next Year3.51%
Revenue Next 2Y3.28%
Revenue Next 3Y3.22%
Revenue Next 5Y3.66%
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
Based on the Price/Earnings ratio of 8.53, the valuation of CNO can be described as reasonable.
Based on the Price/Earnings ratio, CNO is valued a bit cheaper than 73.79% of the companies in the same industry.
CNO is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.44, which indicates a very decent valuation of CNO.
Based on the Price/Forward Earnings ratio, CNO is valued a bit cheaper than the industry average as 63.45% of the companies are valued more expensively.
CNO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.53 | ||
| Fwd PE | 8.44 |
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 67.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.38 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y3.85%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.78%, CNO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.64, CNO has a dividend in line with its industry peers.
CNO's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
On average, the dividend of CNO grows each year by 8.19%, which is quite nice.
CNO has been paying a dividend for at least 10 years, so it has 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
22.04% 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.
DP22.04%
EPS Next 2Y3.85%
EPS Next 3Y6.23%
36.33
-0.61 (-1.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners97.39%
Inst Owner Change-0.02%
Ins Owners2.28%
Ins Owner Change1.16%
Market Cap3.60B
Analysts50.77
Price Target43.45 (19.6%)
Short Float %2.39%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend0.64
Dividend Growth(5Y)8.19%
DP22.04%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.63%
Min EPS beat(2)-0.86%
Max EPS beat(2)22.13%
EPS beat(4)3
Avg EPS beat(4)25.43%
Min EPS beat(4)-0.86%
Max EPS beat(4)47.04%
EPS beat(8)5
Avg EPS beat(8)14.68%
EPS beat(12)7
Avg EPS beat(12)14.67%
EPS beat(16)10
Avg EPS beat(16)14.19%
Revenue beat(2)2
Avg Revenue beat(2)6.93%
Min Revenue beat(2)1.91%
Max Revenue beat(2)11.94%
Revenue beat(4)4
Avg Revenue beat(4)12.03%
Min Revenue beat(4)1.91%
Max Revenue beat(4)19.67%
Revenue beat(8)8
Avg Revenue beat(8)13.53%
Revenue beat(12)11
Avg Revenue beat(12)9.96%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-2.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.23%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-1.48%
Revenue NQ rev (1m)1.67%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.53 | ||
| Fwd PE | 8.44 | ||
| P/S | 0.82 | ||
| P/FCF | 5.38 | ||
| P/OCF | 5.38 | ||
| P/B | 1.42 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.26
EY11.73%
EPS(NY)4.3
Fwd EY11.84%
FCF(TTM)6.76
FCFY18.6%
OCF(TTM)6.76
OCFY18.6%
SpS44.04
BVpS25.52
TBVpS25.52
PEG (NY)N/A
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 12.07% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 15.63% | ||
| PM (TTM) | 6.99% | ||
| GM | N/A | ||
| FCFM | 15.34% |
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-Score4
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 6.57 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 219.32% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
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)36.54%
EPS 3Y12.53%
EPS 5Y16.49%
EPS Q2Q%51.92%
EPS Next Y-4.14%
EPS Next 2Y3.85%
EPS Next 3Y6.23%
EPS Next 5Y6.59%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y3.34%
Revenue growth 5Y2.35%
Sales Q2Q%-13.18%
Revenue Next Year3.51%
Revenue Next 2Y3.28%
Revenue Next 3Y3.22%
Revenue Next 5Y3.66%
EBIT growth 1Y-10.56%
EBIT growth 3Y0.16%
EBIT growth 5Y12.04%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y28.59%
FCF growth 3Y1.61%
FCF growth 5Y-2.06%
OCF growth 1Y28.59%
OCF growth 3Y1.61%
OCF growth 5Y-2.06%