CNA FINANCIAL CORP (CNA) Stock Fundamental Analysis
NYSE:CNA - New York Stock Exchange, Inc. - US1261171003 - Common Stock - Currency: USD
We assign a fundamental rating of 4 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CNA was profitable.
CNA had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 1.33%, CNA is in line with its industry, outperforming 45.45% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.71%, CNA is in line with its industry, outperforming 44.76% 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 44.76% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CNA is below the industry average of 4.13%.
| 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's Profit Margin of 6.19% is in line compared to the rest of the industry. CNA outperforms 44.06% of its industry peers.
In the last couple of years the Profit Margin of CNA has declined.
With a Operating Margin value of 8.74%, CNA perfoms like the industry average, outperforming 44.06% of the companies in the same 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
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's Debt to FCF ratio of 1.14 is in line compared to the rest of the industry. CNA outperforms 59.44% 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.
Looking at the Debt to Equity ratio, with a value of 0.24, CNA is in the better half of the industry, outperforming 67.83% 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
WACC7.95%
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 -5.60%.
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 6.34% in the past 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
The Earnings Per Share is expected to grow by 2.10% on average over the next years.
CNA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 25.99% yearly.
EPS Next Y-3.09%
EPS Next 2Y2.1%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.53, the valuation of CNA can be described as reasonable.
Based on the Price/Earnings ratio, CNA is valued a bit cheaper than 66.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of CNA to the average of the S&P500 Index (26.25), we can say CNA is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.53, the valuation of CNA can be described as very reasonable.
CNA's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.15. CNA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.53 | ||
| Fwd PE | 9.53 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CNA.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNA indicates a somewhat cheap valuation: CNA is cheaper than 69.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.96 | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.73
EPS Next 2Y2.1%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CNA has a Yearly Dividend Yield of 3.86%.
Compared to an average industry Dividend Yield of 3.20, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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.
The dividend of CNA is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP115.2%
EPS Next 2Y2.1%
EPS Next 3YN/A
47.91
+0.3 (+0.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.3%
Inst Owner Change-0.08%
Ins Owners0.42%
Ins Owner Change0.07%
Market Cap12.97B
Analysts44.44
Price Target45.9 (-4.2%)
Short Float %0.47%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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)4.65%
PT rev (3m)-6.25%
EPS NQ rev (1m)-9.72%
EPS NQ rev (3m)-19.42%
EPS NY rev (1m)-6.09%
EPS NY rev (3m)-8.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.53 | ||
| Fwd PE | 9.53 | ||
| P/S | 0.9 | ||
| P/FCF | 4.96 | ||
| P/OCF | 4.79 | ||
| P/B | 1.26 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 11.61 |
EPS(TTM)4.55
EY9.5%
EPS(NY)5.02
Fwd EY10.49%
FCF(TTM)9.65
FCFY20.15%
OCF(TTM)10
OCFY20.86%
SpS53.41
BVpS37.98
TBVpS37.44
PEG (NY)N/A
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
WACC7.95%
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-3.09%
EPS Next 2Y2.1%
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%