FANHUA INC-SPONSORED ADR (FANH) Fundamental Analysis & Valuation

NASDAQ:FANH • US30712A1034

Current stock price

1.53 USD
-0.02 (-1.29%)
Last:

This FANH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. FANH Profitability Analysis

1.1 Basic Checks

  • FANH had positive earnings in the past year.
  • FANH had a positive operating cash flow in the past year.
  • 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 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's Return On Equity of 13.45% is fine compared to the rest of the industry. FANH outperforms 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for FANH is below the industry average of 9.34%.
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 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20

1.3 Margins

  • The Profit Margin of FANH (8.77%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of FANH has declined.
  • With a Operating Margin value of 6.12%, FANH is not doing good in the industry: 64.03% of the companies in the same industry are doing better.
  • In the last couple of years the Operating Margin of FANH has declined.
  • FANH has a better Gross Margin (32.92%) than 92.09% of its industry peers.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

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7

2. FANH Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FANH is destroying value.
  • Compared to 1 year ago, FANH has more shares outstanding
  • FANH has a worse debt/assets ratio than last year.
FANH Yearly Shares OutstandingFANH Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

  • An Altman-Z score of 2.34 indicates that FANH is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 2.34, FANH belongs to the best of the industry, outperforming 93.53% of the companies in the same industry.
  • The Debt to FCF ratio of FANH is 1.12, which is an excellent value as it means it would take FANH, only 1.12 years of fcf income to pay off all of its debts.
  • FANH has a Debt to FCF ratio of 1.12. This is in the better half of the industry: FANH outperforms 62.59% of its industry peers.
  • A Debt/Equity ratio of 0.05 indicates that FANH is not too dependend on debt financing.
  • FANH has a Debt to Equity ratio of 0.05. This is amongst the best in the industry. FANH outperforms 86.33% of its industry peers.
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 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 2.59 indicates that FANH has no problem at all paying its short term obligations.
  • The Current ratio of FANH (2.59) is better than 94.24% of its industry peers.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. FANH Growth Analysis

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.
  • FANH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.98%.
  • 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

  • Based on estimates for the next years, FANH will show a decrease in Earnings Per Share. The EPS will decrease by -8.88% on average per year.
  • 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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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 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 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. FANH Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 2.22, the valuation of FANH can be described as very cheap.
  • 87.77% of the companies in the same industry are more expensive than FANH, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of FANH to the average of the S&P500 Index (25.50), we can say FANH is valued rather cheaply.
  • The Price/Forward Earnings ratio is 2.83, which indicates a rather cheap valuation of FANH.
  • Based on the Price/Forward Earnings ratio, FANH is valued cheaply inside the industry as 84.17% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.67. 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 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Price/Free Cash Flow ratio as FANH.
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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. FANH Dividend Analysis

5.1 Amount

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

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FANH Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)11-18
Inst Owners4.37%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap86.76M
Revenue(TTM)3.20B
Net Income(TTM)280.48M
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
Graham NumberN/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%
ROICexgc growth 3Y-37.7%
ROICexgc 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%

FANHUA INC-SPONSORED ADR / FANH Fundamental Analysis FAQ

What is the ChartMill fundamental rating of FANHUA INC-SPONSORED ADR (FANH) stock?

ChartMill assigns a fundamental rating of 5 / 10 to FANH.


What is the valuation status for FANH stock?

ChartMill assigns a valuation rating of 6 / 10 to FANHUA INC-SPONSORED ADR (FANH). This can be considered as Fairly Valued.


How profitable is FANHUA INC-SPONSORED ADR (FANH) stock?

FANHUA INC-SPONSORED ADR (FANH) has a profitability rating of 6 / 10.


What are the PE and PB ratios of FANHUA INC-SPONSORED ADR (FANH) stock?

The Price/Earnings (PE) ratio for FANHUA INC-SPONSORED ADR (FANH) is 2.22 and the Price/Book (PB) ratio is 0.3.


Can you provide the expected EPS growth for FANH stock?

The Earnings per Share (EPS) of FANHUA INC-SPONSORED ADR (FANH) is expected to decline by -25.89% in the next year.