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FANHUA INC-SPONSORED ADR (FANH) Stock Fundamental Analysis

NASDAQ:FANH - Nasdaq - US30712A1034 - ADR - Currency: USD

1.53  -0.02 (-1.29%)

Fundamental Rating

5

Taking everything into account, FANH scores 5 out of 10 in our fundamental rating. FANH was compared to 144 industry peers in the Insurance industry. FANH has an excellent financial health rating, but there are some minor concerns on its profitability. FANH has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

FANH had positive earnings in the past year.
In the past year FANH had a positive cash flow from operations.
In the past 5 years FANH has always been profitable.
In the past 5 years FANH always reported a positive cash flow from operatings.
FANH Yearly Net Income VS EBIT VS OCF VS FCFFANH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M

1.2 Ratios

FANH's Return On Assets of 7.34% is amongst the best of the industry. FANH outperforms 92.81% of its industry peers.
FANH has a better Return On Equity (13.45%) than 64.75% of its industry peers.
FANH has a Return On Invested Capital of 5.14%. This is amongst the best in the industry. FANH outperforms 85.61% of its industry peers.
FANH had an Average Return On Invested Capital over the past 3 years of 7.25%. This is above the industry average of 4.58%.
Industry RankSector Rank
ROA 7.34%
ROE 13.45%
ROIC 5.14%
ROA(3y)5.97%
ROA(5y)6.42%
ROE(3y)11.13%
ROE(5y)11.56%
ROIC(3y)7.25%
ROIC(5y)9.68%
FANH Yearly ROA, ROE, ROICFANH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20

1.3 Margins

FANH's Profit Margin of 8.77% is in line compared to the rest of the industry. FANH outperforms 56.83% of its industry peers.
FANH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.12%, FANH is doing worse than 64.03% of the companies in the same industry.
FANH's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 32.92%, FANH belongs to the best of the industry, outperforming 92.09% of the companies in the same industry.
In the last couple of years the Gross Margin of FANH has remained more or less at the same level.
Industry RankSector Rank
OM 6.12%
PM (TTM) 8.77%
GM 32.92%
OM growth 3Y-12.84%
OM growth 5Y-12.97%
PM growth 3Y2.22%
PM growth 5Y-12.98%
GM growth 3Y0.68%
GM growth 5Y0.4%
FANH Yearly Profit, Operating, Gross MarginsFANH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

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7

2. Health

2.1 Basic Checks

FANH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for FANH has been increased compared to 1 year ago.
The number of shares outstanding for FANH has been increased compared to 5 years ago.
The debt/assets ratio for FANH is higher compared to a year ago.
FANH Yearly Shares OutstandingFANH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
FANH Yearly Total Debt VS Total AssetsFANH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

FANH has an Altman-Z score of 2.34. This is not the best score and indicates that FANH is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.34, FANH belongs to the top of the industry, outperforming 93.53% of the companies in the same industry.
FANH has a debt to FCF ratio of 1.12. This is a very positive value and a sign of high solvency as it would only need 1.12 years to pay back of all of its debts.
FANH has a better Debt to FCF ratio (1.12) than 62.59% of its industry peers.
FANH has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.05, FANH belongs to the best of the industry, outperforming 86.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 1.12
Altman-Z 2.34
ROIC/WACC0.69
WACC7.48%
FANH Yearly LT Debt VS Equity VS FCFFANH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.3 Liquidity

FANH has a Current Ratio of 2.59. This indicates that FANH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.59, FANH belongs to the top of the industry, outperforming 94.24% of the companies in the same industry.
FANH has a Quick Ratio of 2.59. This indicates that FANH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.59, FANH belongs to the top of the industry, outperforming 94.24% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.59
Quick Ratio 2.59
FANH Yearly Current Assets VS Current LiabilitesFANH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

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3

3. Growth

3.1 Past

FANH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 189.43%, which is quite impressive.
FANH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.87% yearly.
The Revenue has grown by 14.98% in the past year. This is quite good.
Measured over the past years, FANH shows a decrease in Revenue. The Revenue has been decreasing by -1.62% on average per year.
EPS 1Y (TTM)189.43%
EPS 3Y1.38%
EPS 5Y-11.87%
EPS Q2Q%-93.67%
Revenue 1Y (TTM)14.98%
Revenue growth 3Y-0.72%
Revenue growth 5Y-1.62%
Sales Q2Q%-0.83%

3.2 Future

The Earnings Per Share is expected to decrease by -8.88% on average over the next years.
FANH is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.76% yearly.
EPS Next Y-25.89%
EPS Next 2Y-8.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-22.25%
Revenue Next 2Y-6.76%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
FANH Yearly Revenue VS EstimatesFANH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
FANH Yearly EPS VS EstimatesFANH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 2.22, which indicates a rather cheap valuation of FANH.
Based on the Price/Earnings ratio, FANH is valued cheaper than 87.77% of the companies in the same industry.
FANH is valuated cheaply when we compare the Price/Earnings ratio to 29.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 2.83, the valuation of FANH can be described as very cheap.
FANH's Price/Forward Earnings ratio is rather cheap when compared to the industry. FANH is cheaper than 84.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 94.38. FANH is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 2.22
Fwd PE 2.83
FANH Price Earnings VS Forward Price EarningsFANH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

FANH's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 7
EV/EBITDA -3.19
FANH Per share dataFANH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

The decent profitability rating of FANH may justify a higher PE ratio.
FANH's earnings are expected to decrease with -8.88% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.88%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

FANH does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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FANHUA INC-SPONSORED ADR

NASDAQ:FANH (10/22/2024, 8:15:50 PM)

1.53

-0.02 (-1.29%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)09-18 2024-09-18/bmo
Earnings (Next)11-18 2024-11-18/bmo
Inst Owners4.37%
Inst Owner Change-23.35%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap86.76M
Analysts43.33
Price Target6.12 (300%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 2.22
Fwd PE 2.83
P/S 0.19
P/FCF 7
P/OCF 6.1
P/B 0.3
P/tB 0.37
EV/EBITDA -3.19
EPS(TTM)0.69
EY45.1%
EPS(NY)0.54
Fwd EY35.37%
FCF(TTM)0.22
FCFY14.28%
OCF(TTM)0.25
OCFY16.39%
SpS7.93
BVpS5.17
TBVpS4.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 7.34%
ROE 13.45%
ROCE 6.55%
ROIC 5.14%
ROICexc 6.85%
ROICexgc 8.38%
OM 6.12%
PM (TTM) 8.77%
GM 32.92%
FCFM 2.76%
ROA(3y)5.97%
ROA(5y)6.42%
ROE(3y)11.13%
ROE(5y)11.56%
ROIC(3y)7.25%
ROIC(5y)9.68%
ROICexc(3y)15.75%
ROICexc(5y)28.34%
ROICexgc(3y)18.36%
ROICexgc(5y)33.72%
ROCE(3y)9.1%
ROCE(5y)12.03%
ROICexcg growth 3Y-37.7%
ROICexcg growth 5Y-28.74%
ROICexc growth 3Y-39.39%
ROICexc growth 5Y-30.05%
OM growth 3Y-12.84%
OM growth 5Y-12.97%
PM growth 3Y2.22%
PM growth 5Y-12.98%
GM growth 3Y0.68%
GM growth 5Y0.4%
F-Score8
Asset Turnover0.84
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 1.12
Debt/EBITDA 0.43
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 43.99%
Profit Quality 31.42%
Current Ratio 2.59
Quick Ratio 2.59
Altman-Z 2.34
F-Score8
WACC7.48%
ROIC/WACC0.69
Cap/Depr(3y)201.65%
Cap/Depr(5y)160.89%
Cap/Sales(3y)1.38%
Cap/Sales(5y)1.03%
Profit Quality(3y)43.2%
Profit Quality(5y)71.56%
High Growth Momentum
Growth
EPS 1Y (TTM)189.43%
EPS 3Y1.38%
EPS 5Y-11.87%
EPS Q2Q%-93.67%
EPS Next Y-25.89%
EPS Next 2Y-8.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.98%
Revenue growth 3Y-0.72%
Revenue growth 5Y-1.62%
Sales Q2Q%-0.83%
Revenue Next Year-22.25%
Revenue Next 2Y-6.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y16.08%
EBIT growth 3Y-13.47%
EBIT growth 5Y-14.38%
EBIT Next Year-0.95%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y80.57%
FCF growth 3Y-38.78%
FCF growth 5Y-29.25%
OCF growth 1Y107.2%
OCF growth 3Y-36.75%
OCF growth 5Y-27.94%