CNA FINANCIAL CORP (CNA) Stock Fundamental Analysis
NYSE:CNA - New York Stock Exchange, Inc. - US1261171003 - Common Stock - Currency: USD
Overall CNA gets a fundamental rating of 4 out of 10. We evaluated CNA against 143 industry peers in the Insurance industry. CNA has a bad profitability rating. Also its financial health evaluation is rather negative. CNA is not valued too expensively and it also shows a decent growth rate.
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.
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 has a Return On Assets of 1.33%. This is comparable to the rest of the industry: CNA outperforms 44.06% of its industry peers.
CNA has a Return On Equity (8.71%) which is in line with its industry peers.
The Return On Invested Capital of CNA (1.50%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CNA is below the industry average of 4.23%.
| 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
The Profit Margin of CNA (6.19%) 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 (8.74%) which is comparable to the rest of the industry.
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
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.
Compared to 5 years ago, CNA has about the same amount of shares outstanding.
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 1.14, which is an excellent value as it means it would take CNA, only 1.14 years of fcf income to pay off all of its debts.
CNA has a Debt to FCF ratio of 1.14. This is comparable to the rest of the industry: CNA outperforms 58.74% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that CNA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.24, CNA is doing good in the industry, outperforming 68.53% 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
WACC7.98%
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.
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.
Looking at the last year, CNA shows a small growth in Revenue. The Revenue has grown by 6.34% in the last year.
CNA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.71% yearly.
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
Based on estimates for the next years, CNA will show a small growth in Earnings Per Share. The EPS will grow by 3.88% on average per year.
The Revenue is expected to grow by 25.99% on average over the next years. This is a very strong growth
EPS Next Y3.2%
EPS Next 2Y3.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year49.49%
Revenue Next 2Y25.99%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CNA is valuated reasonably with a Price/Earnings ratio of 10.51.
Based on the Price/Earnings ratio, CNA is valued a bit cheaper than 64.34% of the companies in the same industry.
When comparing the Price/Earnings ratio of CNA to the average of the S&P500 Index (24.85), we can say CNA is valued rather cheaply.
CNA is valuated reasonably with a Price/Forward Earnings ratio of 9.19.
Based on the Price/Forward Earnings ratio, CNA is valued a bit cheaper than 61.54% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.89, CNA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 9.19 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CNA.
CNA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CNA is cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.95 | ||
| EV/EBITDA | 11.72 |
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)3.28
PEG (5Y)1.73
EPS Next 2Y3.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CNA has a Yearly Dividend Yield of 3.76%.
CNA's Dividend Yield is rather good when compared to the industry average which is at 3.19. CNA pays more dividend than 80.42% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, CNA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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
CNA pays out 115.20% 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.
DP115.2%
EPS Next 2Y3.88%
EPS Next 3YN/A
47.82
-0.68 (-1.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.3%
Inst Owner Change-0.02%
Ins Owners0.42%
Ins Owner Change0.07%
Market Cap12.92B
Analysts44.44
Price Target45.9 (-4.02%)
Short Float %0.47%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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)-6.25%
PT rev (3m)-7.22%
EPS NQ rev (1m)-16.67%
EPS NQ rev (3m)-28%
EPS NY rev (1m)-3.11%
EPS NY rev (3m)-6.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)37.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)37.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 9.19 | ||
| P/S | 0.89 | ||
| P/FCF | 4.95 | ||
| P/OCF | 4.78 | ||
| P/B | 1.26 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 11.72 |
EPS(TTM)4.55
EY9.51%
EPS(NY)5.2
Fwd EY10.88%
FCF(TTM)9.67
FCFY20.22%
OCF(TTM)10.01
OCFY20.94%
SpS53.5
BVpS38.05
TBVpS37.51
PEG (NY)3.28
PEG (5Y)1.73
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
WACC7.98%
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 Y3.2%
EPS Next 2Y3.88%
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 Year49.49%
Revenue Next 2Y25.99%
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%