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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

FANH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 145 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 on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year FANH was profitable.
In the past year FANH had a positive cash flow from operations.
Each year in the past 5 years FANH has 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

Looking at the Return On Assets, with a value of 7.34%, FANH belongs to the top of the industry, outperforming 92.81% of the companies in the same industry.
With a decent Return On Equity value of 13.45%, FANH is doing good in the industry, outperforming 64.75% of the companies in the same industry.
FANH has a better Return On Invested Capital (5.14%) than 85.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FANH is above the industry average of 4.07%.
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.
In the last couple of years the Profit Margin of FANH has declined.
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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FANH is destroying value.
The number of shares outstanding for FANH has been increased compared to 1 year ago.
FANH has more shares outstanding than it did 5 years ago.
FANH has a worse debt/assets ratio than last year.
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

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.
The Debt to FCF ratio of FANH (1.12) is better than 62.59% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that FANH is not too dependend on debt financing.
The Debt to Equity ratio of FANH (0.05) is better than 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 2015 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.
FANH's Current ratio of 2.59 is amongst the best of the industry. FANH outperforms 94.24% of its industry peers.
A Quick Ratio of 2.59 indicates that FANH has no problem at all paying 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.
The earnings per share for FANH have been decreasing by -11.87% on average. This is quite bad
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 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

FANH is valuated cheaply with a Price/Earnings ratio of 2.22.
87.77% of the companies in the same industry are more expensive than FANH, based on the Price/Earnings ratio.
FANH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
FANH is valuated cheaply with a Price/Forward Earnings ratio of 2.83.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FANH indicates a rather cheap valuation: FANH is cheaper than 84.17% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FANH to the average of the S&P500 Index (21.76), we can say FANH is valued rather cheaply.
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 10 20 30

4.2 Price Multiples

FANH's Price/Free Cash Flow is on the same level as 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 Change0%
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%