CNA FINANCIAL CORP (CNA) Stock Fundamental Analysis
NYSE:CNA - US1261171003 - Common Stock
49.33 USD
+0.01 (+0.02%)
49.33 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to CNA. CNA was compared to 143 industry peers in the Insurance industry. CNA has a bad profitability rating. Also its financial health evaluation is rather negative. CNA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CNA was profitable.
In the past year CNA had a positive cash flow from operations.
In the past 5 years CNA has always been profitable.
In the past 5 years CNA always reported a positive cash flow from operatings.
1.2 Ratios
CNA has a Return On Assets (1.27%) which is in line with its industry peers.
CNA has a Return On Equity of 8.23%. This is comparable to the rest of the industry: CNA outperforms 41.96% of its industry peers.
CNA has a Return On Invested Capital of 1.43%. This is comparable to the rest of the industry: CNA outperforms 46.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNA is below the industry average of 4.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 8.23% | ||
| ROIC | 1.43% |
ROA(3y)1.47%
ROA(5y)1.46%
ROE(3y)9.76%
ROE(5y)8.79%
ROIC(3y)1.62%
ROIC(5y)1.58%
1.3 Margins
CNA has a Profit Margin (5.99%) which is in line with its industry peers.
CNA's Profit Margin has declined in the last couple of years.
The Operating Margin of CNA (8.45%) is worse than 60.14% of its industry peers.
CNA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.45% | ||
| PM (TTM) | 5.99% | ||
| GM | N/A |
OM growth 3Y-10.7%
OM growth 5Y-6.14%
PM growth 3Y-12.24%
PM growth 5Y-6.19%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
CNA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CNA has about the same amount of shares outstanding.
CNA has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for CNA has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of CNA is 1.17, which is an excellent value as it means it would take CNA, only 1.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CNA (1.17) is better than 62.24% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that CNA is not too dependend on debt financing.
CNA's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. CNA outperforms 66.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | N/A |
ROIC/WACC0.18
WACC7.86%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for CNA have decreased by -5.94% in the last year.
Measured over the past 5 years, CNA shows a small growth in Earnings Per Share. The EPS has been growing by 6.07% on average per year.
The Revenue has been growing slightly by 6.12% in the past year.
Measured over the past years, CNA shows a small growth in Revenue. The Revenue has been growing by 5.71% on average per year.
EPS 1Y (TTM)-5.94%
EPS 3Y5.97%
EPS 5Y6.07%
EPS Q2Q%3.36%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y6.22%
Revenue growth 5Y5.71%
Sales Q2Q%34.71%
3.2 Future
The Earnings Per Share is expected to grow by 4.84% on average over the next years.
The Revenue is expected to decrease by -48.91% on average over the next years. This is quite bad
EPS Next Y0.58%
EPS Next 2Y2.61%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue Next Year-78.95%
Revenue Next 2Y-48.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.75 indicates a reasonable valuation of CNA.
Based on the Price/Earnings ratio, CNA is valued a bit cheaper than the industry average as 60.14% of the companies are valued more expensively.
CNA is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.72, the valuation of CNA can be described as very reasonable.
CNA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.81. CNA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 9.72 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CNA.
72.73% of the companies in the same industry are more expensive than CNA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.23 | ||
| EV/EBITDA | 12.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CNA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)18.5
PEG (5Y)1.77
EPS Next 2Y2.61%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
CNA has a Yearly Dividend Yield of 3.73%.
CNA's Dividend Yield is a higher than the industry average which is at 3.52.
Compared to an average S&P500 Dividend Yield of 2.34, CNA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
5.2 History
The dividend of CNA has a limited annual growth rate of 2.00%.
CNA has paid a dividend for at least 10 years, which is a reliable track record.
CNA has decreased its dividend recently.
Dividend Growth(5Y)2%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CNA pays out 118.24% of its income as dividend. This is not a sustainable payout ratio.
CNA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP118.24%
EPS Next 2Y2.61%
EPS Next 3Y4.84%
49.33
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners98.98%
Inst Owner Change0.59%
Ins Owners0.44%
Ins Owner Change0.05%
Market Cap13.35B
Analysts48
Price Target44.12 (-10.56%)
Short Float %0.82%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend3.78
Dividend Growth(5Y)2%
DP118.24%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.83%
Min EPS beat(2)-10.54%
Max EPS beat(2)26.2%
EPS beat(4)2
Avg EPS beat(4)3.98%
Min EPS beat(4)-10.54%
Max EPS beat(4)26.2%
EPS beat(8)4
Avg EPS beat(8)4.02%
EPS beat(12)6
Avg EPS beat(12)4.82%
EPS beat(16)7
Avg EPS beat(16)4.73%
Revenue beat(2)0
Avg Revenue beat(2)-12.01%
Min Revenue beat(2)-12.81%
Max Revenue beat(2)-11.21%
Revenue beat(4)1
Avg Revenue beat(4)-5.69%
Min Revenue beat(4)-12.81%
Max Revenue beat(4)1.29%
Revenue beat(8)2
Avg Revenue beat(8)-8.62%
Revenue beat(12)4
Avg Revenue beat(12)-5.13%
Revenue beat(16)7
Avg Revenue beat(16)1.83%
PT rev (1m)0%
PT rev (3m)-3.89%
EPS NQ rev (1m)7.56%
EPS NQ rev (3m)8.47%
EPS NY rev (1m)25.94%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-85.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 9.72 | ||
| P/S | 0.91 | ||
| P/FCF | 5.23 | ||
| P/OCF | 5.04 | ||
| P/B | 1.25 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 12.22 |
EPS(TTM)4.59
EY9.3%
EPS(NY)5.08
Fwd EY10.29%
FCF(TTM)9.43
FCFY19.12%
OCF(TTM)9.79
OCFY19.85%
SpS54.13
BVpS39.39
TBVpS38.84
PEG (NY)18.5
PEG (5Y)1.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 8.23% | ||
| ROCE | 1.81% | ||
| ROIC | 1.43% | ||
| ROICexc | 1.44% | ||
| ROICexgc | 1.79% | ||
| OM | 8.45% | ||
| PM (TTM) | 5.99% | ||
| GM | N/A | ||
| FCFM | 17.43% |
ROA(3y)1.47%
ROA(5y)1.46%
ROE(3y)9.76%
ROE(5y)8.79%
ROIC(3y)1.62%
ROIC(5y)1.58%
ROICexc(3y)1.63%
ROICexc(5y)1.59%
ROICexgc(3y)2.02%
ROICexgc(5y)1.95%
ROCE(3y)2.04%
ROCE(5y)2%
ROICexcg growth 3Y-4.48%
ROICexcg growth 5Y-1.5%
ROICexc growth 3Y-5.11%
ROICexc growth 5Y-2.57%
OM growth 3Y-10.7%
OM growth 5Y-6.14%
PM growth 3Y-12.24%
PM growth 5Y-6.19%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.17 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 144.12% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 202.99% | ||
| Profit Quality | 291.11% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.86%
ROIC/WACC0.18
Cap/Depr(3y)122.35%
Cap/Depr(5y)90.7%
Cap/Sales(3y)0.59%
Cap/Sales(5y)0.44%
Profit Quality(3y)266.53%
Profit Quality(5y)243.99%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.94%
EPS 3Y5.97%
EPS 5Y6.07%
EPS Q2Q%3.36%
EPS Next Y0.58%
EPS Next 2Y2.61%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue 1Y (TTM)6.12%
Revenue growth 3Y6.22%
Revenue growth 5Y5.71%
Sales Q2Q%34.71%
Revenue Next Year-78.95%
Revenue Next 2Y-48.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-29.34%
EBIT growth 3Y-5.15%
EBIT growth 5Y-0.78%
EBIT Next Year-66.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y20.65%
FCF growth 3Y7.9%
FCF growth 5Y17.32%
OCF growth 1Y21.27%
OCF growth 3Y8.79%
OCF growth 5Y17.66%