CNFINANCE HOLDINGS LTD (CNF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNF - US18979T2042 - ADR
5.76 USD
+0.7 (+13.83%)
Taking everything into account, CNF scores 2 out of 10 in our fundamental rating. CNF was compared to 97 industry peers in the Financial Services industry. CNF has a bad profitability rating. Also its financial health evaluation is rather negative. CNF is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year CNF was profitable.
- CNF had positive earnings in each of the past 5 years.
- Each year in the past 5 years CNF had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 0.30%, CNF is not doing good in the industry: 64.95% of the companies in the same industry are doing better.
- With a Return On Equity value of 0.94%, CNF is not doing good in the industry: 70.10% of the companies in the same industry are doing better.
- The Return On Invested Capital of CNF (0.31%) is worse than 65.98% of its industry peers.
- CNF had an Average Return On Invested Capital over the past 3 years of 0.74%. This is significantly below the industry average of 8.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.3% | ||
| ROE | 0.94% | ||
| ROIC | 0.31% |
ROA(3y)0.74%
ROA(5y)0.71%
ROE(3y)2.87%
ROE(5y)2.64%
ROIC(3y)0.74%
ROIC(5y)0.79%
1.3 Margins
- With a Profit Margin value of 2.37%, CNF is not doing good in the industry: 67.01% of the companies in the same industry are doing better.
- In the last couple of years the Profit Margin of CNF has declined.
- CNF has a Operating Margin of 3.00%. This is in the lower half of the industry: CNF underperforms 69.07% of its industry peers.
- CNF's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 34.60%, CNF perfoms like the industry average, outperforming 50.52% of the companies in the same industry.
- In the last couple of years the Gross Margin of CNF has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3% | ||
| PM (TTM) | 2.37% | ||
| GM | 34.6% |
OM growth 3Y-26.58%
OM growth 5Y-34.1%
PM growth 3Y-20.14%
PM growth 5Y-32.75%
GM growth 3Y34.97%
GM growth 5Y-7.86%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CNF is destroying value.
- CNF has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CNF has about the same amount of shares outstanding.
- CNF has a better debt/assets ratio than last year.
2.2 Solvency
- CNF has an Altman-Z score of 0.35. This is a bad value and indicates that CNF is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.35, CNF is in line with its industry, outperforming 49.48% of the companies in the same industry.
- CNF has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
- CNF's Debt to Equity ratio of 1.32 is on the low side compared to the rest of the industry. CNF is outperformed by 60.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.35 |
ROIC/WACC0.04
WACC7.41%
2.3 Liquidity
- CNF has a Current Ratio of 0.33. This is a bad value and indicates that CNF is not financially healthy enough and could expect problems in meeting its short term obligations.
- CNF has a Current ratio of 0.33. This is in the lower half of the industry: CNF underperforms 63.92% of its industry peers.
- A Quick Ratio of 0.33 indicates that CNF may have some problems paying its short term obligations.
- CNF has a worse Quick ratio (0.33) than 63.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
- CNF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -75.44%.
- Measured over the past years, CNF shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.65% on average per year.
- CNF shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.83%.
- Measured over the past years, CNF shows a very strong growth in Revenue. The Revenue has been growing by 28.98% on average per year.
EPS 1Y (TTM)-75.44%
EPS 3Y58.74%
EPS 5Y-11.65%
EPS Q2Q%-175%
Revenue 1Y (TTM)-12.83%
Revenue growth 3Y94.77%
Revenue growth 5Y28.98%
Sales Q2Q%-59.6%
3.2 Future
- CNF is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -73.58% yearly.
- The Revenue is expected to decrease by -31.48% on average over the next years. This is quite bad
EPS Next Y-80%
EPS Next 2Y-73.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.09%
Revenue Next 2Y-31.48%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- CNF is valuated cheaply with a Price/Earnings ratio of 7.29.
- CNF's Price/Earnings ratio is rather cheap when compared to the industry. CNF is cheaper than 87.63% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, CNF is valued rather cheaply.
- With a Price/Forward Earnings ratio of 569.95, CNF can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CNF indicates a slightly more expensive valuation: CNF is more expensive than 79.38% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. CNF is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 569.95 |
4.2 Price Multiples
- CNF's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CNF is more expensive than 63.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 55.34 |
4.3 Compensation for Growth
- CNF's earnings are expected to decrease with -73.58% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-73.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- CNF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CNFINANCE HOLDINGS LTD / CNF FAQ
What is the ChartMill fundamental rating of CNFINANCE HOLDINGS LTD (CNF) stock?
ChartMill assigns a fundamental rating of 2 / 10 to CNF.
What is the valuation status for CNF stock?
ChartMill assigns a valuation rating of 2 / 10 to CNFINANCE HOLDINGS LTD (CNF). This can be considered as Overvalued.
Can you provide the profitability details for CNFINANCE HOLDINGS LTD?
CNFINANCE HOLDINGS LTD (CNF) has a profitability rating of 2 / 10.
What is the earnings growth outlook for CNFINANCE HOLDINGS LTD?
The Earnings per Share (EPS) of CNFINANCE HOLDINGS LTD (CNF) is expected to decline by -80% in the next year.