CNA FINANCIAL CORP (CNA) Stock Fundamental Analysis
USA - NYSE:CNA - US1261171003 - Common Stock
46.02 USD
+0.68 (+1.5%)
46.02 USD
0 (0%)
Overall CNA gets a fundamental rating of 3 out of 10. We evaluated CNA against 146 industry peers in the Insurance industry. Both the profitability and financial health of CNA have multiple concerns. 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.
CNA had a positive operating cash flow in the past year.
In the past 5 years CNA has always 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 of 1.43%. This is comparable to the rest of the industry: CNA outperforms 41.78% of its industry peers.
CNA's Return On Equity of 8.81% is in line compared to the rest of the industry. CNA outperforms 42.47% of its industry peers.
With a Return On Invested Capital value of 1.60%, CNA perfoms like the industry average, outperforming 43.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNA is below the industry average of 4.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 8.81% | ||
| ROIC | 1.6% |
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's Profit Margin of 6.71% is in line compared to the rest of the industry. CNA outperforms 43.15% of its industry peers.
In the last couple of years the Profit Margin of CNA has declined.
The Operating Margin of CNA (9.39%) is worse than 60.96% of its industry peers.
In the last couple of years the Operating Margin of CNA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.39% | ||
| PM (TTM) | 6.71% | ||
| 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.
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.
CNA has a better debt/assets ratio than last year.
2.2 Solvency
CNA has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
The Debt to FCF ratio of CNA (1.37) is better than 63.01% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that CNA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.26, CNA is in the better half of the industry, outperforming 60.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | N/A |
ROIC/WACC0.21
WACC7.69%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.24% over the past year.
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 5.41%.
CNA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.71% yearly.
EPS 1Y (TTM)2.24%
EPS 3Y5.97%
EPS 5Y6.07%
EPS Q2Q%38.89%
Revenue 1Y (TTM)5.41%
Revenue growth 3Y6.22%
Revenue growth 5Y5.71%
Sales Q2Q%32.32%
3.2 Future
The Earnings Per Share is expected to grow by 4.84% on average over the next years.
Based on estimates for the next years, CNA will show a very negative growth in Revenue. The Revenue will decrease by -52.08% on average per year.
EPS Next Y-0.47%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 9.19, which indicates a very decent valuation of CNA.
65.07% of the companies in the same industry are more expensive than CNA, based on the Price/Earnings ratio.
CNA is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
CNA is valuated reasonably with a Price/Forward Earnings ratio of 9.49.
CNA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CNA is cheaper than 63.01% of the companies in the same industry.
CNA is valuated cheaply when we compare the Price/Forward Earnings ratio to 33.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 9.49 |
4.2 Price Multiples
CNA's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CNA is valued a bit cheaper than the industry average as 73.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.93 | ||
| EV/EBITDA | 10.43 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.51
EPS Next 2Y0.29%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.07%, CNA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.45, CNA pays a better dividend. On top of this CNA pays more dividend than 80.14% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CNA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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.
The dividend of CNA decreased recently.
Dividend Growth(5Y)2%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
104.41% of the earnings are spent on dividend by CNA. This is not a sustainable payout ratio.
The dividend of CNA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP104.41%
EPS Next 2Y0.29%
EPS Next 3Y4.84%
46.02
+0.68 (+1.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners7.83%
Inst Owner Change-0.64%
Ins Owners0.43%
Ins Owner Change-0.03%
Market Cap12.46B
Revenue(TTM)14.85B
Net Income(TTM)997.00M
Analysts46.67
Price Target36.47 (-20.75%)
Short Float %0.67%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend3.78
Dividend Growth(5Y)2%
DP104.41%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.36%
Min EPS beat(2)12.51%
Max EPS beat(2)26.2%
EPS beat(4)3
Avg EPS beat(4)7.2%
Min EPS beat(4)-10.54%
Max EPS beat(4)26.2%
EPS beat(8)4
Avg EPS beat(8)4.9%
EPS beat(12)6
Avg EPS beat(12)3.56%
EPS beat(16)7
Avg EPS beat(16)2.83%
Revenue beat(2)0
Avg Revenue beat(2)-11.43%
Min Revenue beat(2)-11.64%
Max Revenue beat(2)-11.21%
Revenue beat(4)1
Avg Revenue beat(4)-8.6%
Min Revenue beat(4)-12.81%
Max Revenue beat(4)1.29%
Revenue beat(8)2
Avg Revenue beat(8)-9.91%
Revenue beat(12)3
Avg Revenue beat(12)-8.66%
Revenue beat(16)6
Avg Revenue beat(16)-1.53%
PT rev (1m)0%
PT rev (3m)-17.34%
EPS NQ rev (1m)9.09%
EPS NQ rev (3m)10.92%
EPS NY rev (1m)3.26%
EPS NY rev (3m)24.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-10.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 9.49 | ||
| P/S | 0.84 | ||
| P/FCF | 4.93 | ||
| P/OCF | 4.75 | ||
| P/B | 1.1 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 10.43 |
EPS(TTM)5.01
EY10.89%
EPS(NY)4.85
Fwd EY10.53%
FCF(TTM)9.34
FCFY20.29%
OCF(TTM)9.69
OCFY21.06%
SpS54.86
BVpS41.83
TBVpS41.28
PEG (NY)N/A
PEG (5Y)1.51
Graham Number68.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 8.81% | ||
| ROCE | 2.01% | ||
| ROIC | 1.6% | ||
| ROICexc | 1.61% | ||
| ROICexgc | 1.99% | ||
| OM | 9.39% | ||
| PM (TTM) | 6.71% | ||
| GM | N/A | ||
| FCFM | 17.02% |
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%
ROICexgc growth 3Y-4.48%
ROICexgc 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 | 0.26 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 139.13% | ||
| Cap/Sales | 0.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 179.29% | ||
| Profit Quality | 253.46% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.69%
ROIC/WACC0.21
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)2.24%
EPS 3Y5.97%
EPS 5Y6.07%
EPS Q2Q%38.89%
EPS Next Y-0.47%
EPS Next 2Y0.29%
EPS Next 3Y4.84%
EPS Next 5YN/A
Revenue 1Y (TTM)5.41%
Revenue growth 3Y6.22%
Revenue growth 5Y5.71%
Sales Q2Q%32.32%
Revenue Next Year-81.08%
Revenue Next 2Y-52.08%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-21.9%
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 1Y14.92%
FCF growth 3Y7.9%
FCF growth 5Y17.32%
OCF growth 1Y15.2%
OCF growth 3Y8.79%
OCF growth 5Y17.66%
CNA FINANCIAL CORP / CNA FAQ
What is the ChartMill fundamental rating of CNA FINANCIAL CORP (CNA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to CNA.
What is the valuation status for CNA stock?
ChartMill assigns a valuation rating of 5 / 10 to CNA FINANCIAL CORP (CNA). This can be considered as Fairly Valued.
What is the profitability of CNA stock?
CNA FINANCIAL CORP (CNA) has a profitability rating of 3 / 10.
What is the financial health of CNA FINANCIAL CORP (CNA) stock?
The financial health rating of CNA FINANCIAL CORP (CNA) is 3 / 10.
Is the dividend of CNA FINANCIAL CORP sustainable?
The dividend rating of CNA FINANCIAL CORP (CNA) is 6 / 10 and the dividend payout ratio is 104.41%.