CNA FINANCIAL CORP (CNA) Stock Fundamental Analysis
NYSE:CNA - New York Stock Exchange, Inc. - US1261171003 - Common Stock - Currency: USD
Taking everything into account, CNA scores 3 out of 10 in our fundamental rating. CNA was compared to 143 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
In the past year CNA was profitable.
CNA had a positive operating cash flow in the past year.
CNA had positive earnings in each of the past 5 years.
CNA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CNA's Return On Assets of 1.33% is in line compared to the rest of the industry. CNA outperforms 46.85% of its industry peers.
Looking at the Return On Equity, with a value of 8.71%, CNA is in line with its industry, outperforming 44.06% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.50%, CNA is in line with its industry, outperforming 44.06% 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 4.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 8.71% | ||
| ROIC | 1.5% |
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 (6.19%) which is comparable to the rest of the industry.
CNA's Profit Margin has declined in the last couple of years.
CNA has a Operating Margin of 8.74%. This is comparable to the rest of the industry: CNA outperforms 45.45% of its industry peers.
In the last couple of years the Operating Margin of CNA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.74% | ||
| PM (TTM) | 6.19% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNA is destroying value.
Compared to 1 year ago, CNA has about the same amount of shares outstanding.
Compared to 5 years ago, CNA has about the same amount of shares outstanding.
CNA has a better debt/assets ratio than last year.
2.2 Solvency
CNA has a debt to FCF ratio of 1.14. This is a very positive value and a sign of high solvency as it would only need 1.14 years to pay back of all of its debts.
CNA has a Debt to FCF ratio of 1.14. This is in the better half of the industry: CNA outperforms 60.14% of its industry peers.
CNA has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.24, CNA is doing good in the industry, outperforming 67.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | N/A |
ROIC/WACC0.19
WACC7.87%
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 -5.60% in the last year.
The Earnings Per Share has been growing slightly by 6.07% on average over the past years.
CNA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.34%.
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)-5.6%
EPS 3Y5.97%
EPS 5Y6.07%
EPS Q2Q%-20.77%
Revenue 1Y (TTM)6.34%
Revenue growth 3Y6.22%
Revenue growth 5Y5.71%
Sales Q2Q%32.69%
3.2 Future
CNA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.26% yearly.
CNA is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -48.91% yearly.
EPS Next Y-20.14%
EPS Next 2Y-6.26%
EPS Next 3YN/A
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
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
CNA is valuated reasonably with a Price/Earnings ratio of 9.81.
Compared to the rest of the industry, the Price/Earnings ratio of CNA indicates a somewhat cheap valuation: CNA is cheaper than 67.83% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.53, CNA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.54, the valuation of CNA can be described as reasonable.
CNA's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.71, CNA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 10.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNA is on the same level as its industry peers.
CNA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CNA is cheaper than 72.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.62 | ||
| EV/EBITDA | 10.76 |
4.3 Compensation for Growth
CNA's earnings are expected to decrease with -6.26% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.62
EPS Next 2Y-6.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CNA has a Yearly Dividend Yield of 4.17%, which is a nice return.
Compared to an average industry Dividend Yield of 3.38, CNA pays a bit more dividend than its industry peers.
CNA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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
115.20% of the earnings are spent on dividend by CNA. This is not a sustainable payout ratio.
CNA's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP115.2%
EPS Next 2Y-6.26%
EPS Next 3YN/A
44.64
+0.94 (+2.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.01%
Inst Owner Change-0.08%
Ins Owners0.46%
Ins Owner Change0.07%
Market Cap12.08B
Analysts48
Price Target44.12 (-1.16%)
Short Float %0.95%
Short Ratio5.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend3.78
Dividend Growth(5Y)2%
DP115.2%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.96%
Min EPS beat(2)-10.54%
Max EPS beat(2)0.62%
EPS beat(4)1
Avg EPS beat(4)-2.87%
Min EPS beat(4)-10.54%
Max EPS beat(4)0.62%
EPS beat(8)3
Avg EPS beat(8)0.22%
EPS beat(12)5
Avg EPS beat(12)1.53%
EPS beat(16)7
Avg EPS beat(16)3.76%
Revenue beat(2)1
Avg Revenue beat(2)-5.76%
Min Revenue beat(2)-12.81%
Max Revenue beat(2)1.29%
Revenue beat(4)1
Avg Revenue beat(4)-10.47%
Min Revenue beat(4)-30.34%
Max Revenue beat(4)1.29%
Revenue beat(8)2
Avg Revenue beat(8)-10.81%
Revenue beat(12)5
Avg Revenue beat(12)-1.42%
Revenue beat(16)8
Avg Revenue beat(16)5.39%
PT rev (1m)-3.89%
PT rev (3m)-9.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.72%
EPS NY rev (1m)0%
EPS NY rev (3m)-22.61%
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 | 9.81 | ||
| Fwd PE | 10.54 | ||
| P/S | 0.84 | ||
| P/FCF | 4.62 | ||
| P/OCF | 4.47 | ||
| P/B | 1.18 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 10.76 |
EPS(TTM)4.55
EY10.19%
EPS(NY)4.24
Fwd EY9.49%
FCF(TTM)9.65
FCFY21.62%
OCF(TTM)10
OCFY22.39%
SpS53.41
BVpS37.98
TBVpS37.44
PEG (NY)N/A
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 8.71% | ||
| ROCE | 1.89% | ||
| ROIC | 1.5% | ||
| ROICexc | 1.51% | ||
| ROICexgc | 1.88% | ||
| OM | 8.74% | ||
| PM (TTM) | 6.19% | ||
| GM | N/A | ||
| FCFM | 18.07% |
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 | 0.24 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 136.76% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 203.23% | ||
| Profit Quality | 291.84% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.87%
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)-5.6%
EPS 3Y5.97%
EPS 5Y6.07%
EPS Q2Q%-20.77%
EPS Next Y-20.14%
EPS Next 2Y-6.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.34%
Revenue growth 3Y6.22%
Revenue growth 5Y5.71%
Sales Q2Q%32.69%
Revenue Next Year-78.95%
Revenue Next 2Y-48.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-26.05%
EBIT growth 3Y-5.15%
EBIT growth 5Y-0.78%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.97%
FCF growth 3Y7.9%
FCF growth 5Y17.32%
OCF growth 1Y17.97%
OCF growth 3Y8.79%
OCF growth 5Y17.66%