CANNAE HOLDINGS INC (CNNE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNNE - US13765N1072 - Common Stock
14.475 USD
-0.28 (-1.86%)
CNNE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 97 industry peers in the Financial Services industry. While CNNE seems to be doing ok healthwise, there are quite some concerns on its profitability. CNNE has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- CNNE had negative earnings in the past year.
- CNNE had a negative operating cash flow in the past year.
- CNNE had negative earnings in 4 of the past 5 years.
- CNNE had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
- CNNE has a Return On Assets of -30.79%. This is amonst the worse of the industry: CNNE underperforms 89.69% of its industry peers.
- Looking at the Return On Equity, with a value of -38.54%, CNNE is doing worse than 85.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -30.79% | ||
| ROE | -38.54% | ||
| ROIC | N/A |
ROA(3y)-13.01%
ROA(5y)-1.54%
ROE(3y)-15.27%
ROE(5y)-1.43%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- CNNE's Gross Margin of 15.78% is on the low side compared to the rest of the industry. CNNE is outperformed by 63.92% of its industry peers.
- CNNE's Gross Margin has improved in the last couple of years.
- The Profit Margin and Operating Margin are not available for CNNE so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 15.78% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.75%
GM growth 5Y3.28%
2. Health
2.1 Basic Checks
- CNNE does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for CNNE has been reduced compared to 1 year ago.
- Compared to 5 years ago, CNNE has less shares outstanding
- Compared to 1 year ago, CNNE has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.68, we must say that CNNE is in the distress zone and has some risk of bankruptcy.
- CNNE has a better Altman-Z score (1.68) than 69.07% of its industry peers.
- A Debt/Equity ratio of 0.05 indicates that CNNE is not too dependend on debt financing.
- The Debt to Equity ratio of CNNE (0.05) is better than 80.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.68 |
ROIC/WACCN/A
WACC7.98%
2.3 Liquidity
- CNNE has a Current Ratio of 2.03. This indicates that CNNE is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of CNNE (2.03) is better than 76.29% of its industry peers.
- CNNE has a Quick Ratio of 2.03. This indicates that CNNE is financially healthy and has no problem in meeting its short term obligations.
- With a decent Quick ratio value of 2.03, CNNE is doing good in the industry, outperforming 77.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
- CNNE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -60.71%.
- CNNE shows a decrease in Revenue. In the last year, the revenue decreased by -6.86%.
- The Revenue for CNNE have been decreasing by -15.81% on average. This is quite bad
EPS 1Y (TTM)-60.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-468.18%
Revenue 1Y (TTM)-6.86%
Revenue growth 3Y-15.21%
Revenue growth 5Y-15.81%
Sales Q2Q%-6.15%
3.2 Future
- CNNE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.42% yearly.
- CNNE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.99% yearly.
EPS Next Y-64.56%
EPS Next 2Y26.84%
EPS Next 3Y18.42%
EPS Next 5YN/A
Revenue Next Year-5.69%
Revenue Next 2Y-5.09%
Revenue Next 3Y-2.99%
Revenue Next 5YN/A
3.3 Evolution
- 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
- The Price/Earnings Ratio is negative for CNNE. In the last year negative earnings were reported.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for CNNE. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- A more expensive valuation may be justified as CNNE's earnings are expected to grow with 18.42% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y26.84%
EPS Next 3Y18.42%
5. Dividend
5.1 Amount
- CNNE has a Yearly Dividend Yield of 3.40%. Purely for dividend investing, there may be better candidates out there.
- CNNE's Dividend Yield is rather good when compared to the industry average which is at 2.09. CNNE pays more dividend than 80.41% of the companies in the same industry.
- CNNE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
5.2 History
- CNNE has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- The earnings of CNNE are negative and hence is the payout ratio. CNNE will probably not be able to sustain this dividend level.
DP-6.63%
EPS Next 2Y26.84%
EPS Next 3Y18.42%
CANNAE HOLDINGS INC / CNNE FAQ
What is the ChartMill fundamental rating of CANNAE HOLDINGS INC (CNNE) stock?
ChartMill assigns a fundamental rating of 2 / 10 to CNNE.
What is the valuation status of CANNAE HOLDINGS INC (CNNE) stock?
ChartMill assigns a valuation rating of 0 / 10 to CANNAE HOLDINGS INC (CNNE). This can be considered as Overvalued.
How profitable is CANNAE HOLDINGS INC (CNNE) stock?
CANNAE HOLDINGS INC (CNNE) has a profitability rating of 1 / 10.
How sustainable is the dividend of CANNAE HOLDINGS INC (CNNE) stock?
The dividend rating of CANNAE HOLDINGS INC (CNNE) is 3 / 10 and the dividend payout ratio is -6.63%.