CNA FINANCIAL CORP (CNA) Stock Fundamental Analysis
USA - NYSE:CNA - US1261171003 - Common Stock
46.67 USD
+0.6 (+1.3%)
46.67 USD
0 (0%)
Taking everything into account, CNA scores 3 out of 10 in our fundamental rating. CNA was compared to 145 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
CNA had positive earnings in the past year.
In the past year CNA had a positive cash flow from operations.
Each year in the past 5 years CNA has been profitable.
Each year in the past 5 years CNA had a positive operating cash flow.
1.2 Ratios
CNA has a Return On Assets (1.27%) which is comparable to the rest of the industry.
With a Return On Equity value of 8.23%, CNA is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
CNA has a Return On Invested Capital (1.43%) which is in line with its industry peers.
CNA had an Average Return On Invested Capital over the past 3 years of 1.62%. This is below the industry average of 4.40%.
| 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.
CNA has a Operating Margin of 8.45%. This is in the lower half of the industry: CNA underperforms 63.45% of its industry peers.
In the last couple of years the Operating Margin of CNA has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CNA is destroying value.
The number of shares outstanding for CNA remains at a similar level compared to 1 year ago.
CNA has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, CNA has an improved debt to assets ratio.
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.
CNA's Debt to FCF ratio of 1.17 is fine compared to the rest of the industry. CNA outperforms 63.45% of its industry peers.
CNA has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
CNA has a Debt to Equity ratio of 0.23. This is in the better half of the industry: CNA outperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | N/A |
ROIC/WACC0.19
WACC7.64%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
CNA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.94%.
CNA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.07% yearly.
CNA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.12%.
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
Based on estimates for the next years, CNA will show a small growth in Earnings Per Share. The EPS will grow by 4.84% on average per year.
CNA is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -52.08% yearly.
EPS Next Y-3.61%
EPS Next 2Y0.29%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue Next Year-81.08%
Revenue Next 2Y-52.08%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CNA is valuated reasonably with a Price/Earnings ratio of 10.17.
Based on the Price/Earnings ratio, CNA is valued a bit cheaper than 64.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of CNA to the average of the S&P500 Index (27.02), we can say CNA is valued rather cheaply.
A Price/Forward Earnings ratio of 9.63 indicates a reasonable valuation of CNA.
60.69% of the companies in the same industry are more expensive than CNA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, CNA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 9.63 |
4.2 Price Multiples
CNA's Enterprise Value to EBITDA ratio is in line with the industry average.
73.79% 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 | 4.95 | ||
| EV/EBITDA | 11.54 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.68
EPS Next 2Y0.29%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
CNA has a Yearly Dividend Yield of 3.99%.
CNA's Dividend Yield is rather good when compared to the industry average which is at 3.54. CNA pays more dividend than 80.69% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, CNA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
5.2 History
The dividend of CNA has a limited annual growth rate of 2.00%.
CNA has been paying a dividend for at least 10 years, so it has 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 2Y0.29%
EPS Next 3Y4.84%
46.67
+0.6 (+1.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners7.83%
Inst Owner Change0%
Ins Owners0.43%
Ins Owner Change-0.03%
Market Cap12.63B
Analysts46.67
Price Target36.47 (-21.86%)
Short Float %0.82%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
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)-17.34%
PT rev (3m)-17.34%
EPS NQ rev (1m)-5.47%
EPS NQ rev (3m)0.83%
EPS NY rev (1m)-4.17%
EPS NY rev (3m)20.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-10.1%
Revenue NY rev (3m)-10.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 9.63 | ||
| P/S | 0.86 | ||
| P/FCF | 4.95 | ||
| P/OCF | 4.77 | ||
| P/B | 1.18 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 11.54 |
EPS(TTM)4.59
EY9.84%
EPS(NY)4.85
Fwd EY10.39%
FCF(TTM)9.43
FCFY20.21%
OCF(TTM)9.79
OCFY20.99%
SpS54.13
BVpS39.39
TBVpS38.84
PEG (NY)N/A
PEG (5Y)1.68
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
WACC7.64%
ROIC/WACC0.19
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 Y-3.61%
EPS Next 2Y0.29%
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-81.08%
Revenue Next 2Y-52.08%
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-80.57%
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%