CNO FINANCIAL GROUP INC (CNO) Stock Fundamental Analysis
NYSE:CNO - New York Stock Exchange, Inc. - US12621E1038 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CNO. CNO was compared to 143 industry peers in the Insurance industry. CNO has a medium profitability rating, but doesn't score so well on its financial health evaluation. CNO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CNO was profitable.
In the past year CNO had a positive cash flow from operations.
In the past 5 years CNO has always been profitable.
Each year in the past 5 years CNO had a positive operating cash flow.
1.2 Ratios
CNO's Return On Assets of 0.82% is on the low side compared to the rest of the industry. CNO is outperformed by 60.84% of its industry peers.
CNO has a Return On Equity of 12.07%. This is in the better half of the industry: CNO outperforms 60.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 12.07% | ||
| ROIC | N/A |
ROA(3y)1.25%
ROA(5y)1.24%
ROE(3y)21.43%
ROE(5y)16.13%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CNO's Profit Margin of 6.99% is in line compared to the rest of the industry. CNO outperforms 48.95% of its industry peers.
In the last couple of years the Profit Margin of CNO has declined.
CNO's Operating Margin of 15.63% is fine compared to the rest of the industry. CNO outperforms 71.33% of its industry peers.
In the last couple of years the Operating Margin of CNO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.63% | ||
| PM (TTM) | 6.99% | ||
| GM | N/A |
OM growth 3Y-3.08%
OM growth 5Y9.46%
PM growth 3Y-13.73%
PM growth 5Y-2.56%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for CNO has been reduced compared to 1 year ago.
Compared to 5 years ago, CNO has less shares outstanding
Compared to 1 year ago, CNO has a worse debt to assets ratio.
2.2 Solvency
CNO has a debt to FCF ratio of 6.57. This is a slightly negative value and a sign of low solvency as CNO would need 6.57 years to pay back of all of its debts.
The Debt to FCF ratio of CNO (6.57) is worse than 68.53% of its industry peers.
CNO has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.74, CNO is not doing good in the industry: 91.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 6.57 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
CNO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.54%, which is quite impressive.
The Earnings Per Share has been growing by 16.49% on average over the past years. This is quite good.
Looking at the last year, CNO shows a small growth in Revenue. The Revenue has grown by 0.10% in the last year.
Measured over the past years, CNO shows a small growth in Revenue. The Revenue has been growing by 2.35% on average per year.
EPS 1Y (TTM)36.54%
EPS 3Y12.53%
EPS 5Y16.49%
EPS Q2Q%51.92%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y3.34%
Revenue growth 5Y2.35%
Sales Q2Q%-13.18%
3.2 Future
Based on estimates for the next years, CNO will show a small growth in Earnings Per Share. The EPS will grow by 6.59% on average per year.
CNO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.66% yearly.
EPS Next Y-3.83%
EPS Next 2Y3.89%
EPS Next 3Y6.26%
EPS Next 5Y6.59%
Revenue Next Year3.51%
Revenue Next 2Y3.28%
Revenue Next 3Y3.22%
Revenue Next 5Y3.66%
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
With a Price/Earnings ratio of 8.70, the valuation of CNO can be described as very reasonable.
72.73% of the companies in the same industry are more expensive than CNO, based on the Price/Earnings ratio.
CNO is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.60, which indicates a very decent valuation of CNO.
Based on the Price/Forward Earnings ratio, CNO is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CNO to the average of the S&P500 Index (22.19), we can say CNO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 8.6 |
4.2 Price Multiples
CNO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CNO is cheaper than 67.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.49 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y3.89%
EPS Next 3Y6.26%
5. Dividend
5.1 Amount
CNO has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.46, CNO has a dividend in line with its industry peers.
CNO's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of CNO is nicely growing with an annual growth rate of 8.19%!
CNO has paid a dividend for at least 10 years, which is a reliable track record.
CNO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.19%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
22.04% of the earnings are spent on dividend by CNO. This is a low number and sustainable payout ratio.
CNO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.04%
EPS Next 2Y3.89%
EPS Next 3Y6.26%
37.06
+0.15 (+0.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners97.39%
Inst Owner Change-0.17%
Ins Owners2.28%
Ins Owner Change0.95%
Market Cap3.67B
Analysts50.77
Price Target43.66 (17.81%)
Short Float %2.33%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend0.64
Dividend Growth(5Y)8.19%
DP22.04%
Div Incr Years12
Div Non Decr Years12
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.63%
Min EPS beat(2)-0.86%
Max EPS beat(2)22.13%
EPS beat(4)3
Avg EPS beat(4)25.43%
Min EPS beat(4)-0.86%
Max EPS beat(4)47.04%
EPS beat(8)5
Avg EPS beat(8)14.68%
EPS beat(12)7
Avg EPS beat(12)14.67%
EPS beat(16)10
Avg EPS beat(16)14.19%
Revenue beat(2)2
Avg Revenue beat(2)6.93%
Min Revenue beat(2)1.91%
Max Revenue beat(2)11.94%
Revenue beat(4)4
Avg Revenue beat(4)12.03%
Min Revenue beat(4)1.91%
Max Revenue beat(4)19.67%
Revenue beat(8)8
Avg Revenue beat(8)13.53%
Revenue beat(12)11
Avg Revenue beat(12)9.96%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.47%
PT rev (3m)-1.61%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)-5.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 8.6 | ||
| P/S | 0.84 | ||
| P/FCF | 5.49 | ||
| P/OCF | 5.49 | ||
| P/B | 1.45 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.26
EY11.49%
EPS(NY)4.31
Fwd EY11.62%
FCF(TTM)6.76
FCFY18.23%
OCF(TTM)6.76
OCFY18.23%
SpS44.04
BVpS25.52
TBVpS25.52
PEG (NY)N/A
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 12.07% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 15.63% | ||
| PM (TTM) | 6.99% | ||
| GM | N/A | ||
| FCFM | 15.34% |
ROA(3y)1.25%
ROA(5y)1.24%
ROE(3y)21.43%
ROE(5y)16.13%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)2.15%
ROCE(5y)1.99%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-3.08%
OM growth 5Y9.46%
PM growth 3Y-13.73%
PM growth 5Y-2.56%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 6.57 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 219.32% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)148.25%
Profit Quality(5y)158.67%
High Growth Momentum
Growth
EPS 1Y (TTM)36.54%
EPS 3Y12.53%
EPS 5Y16.49%
EPS Q2Q%51.92%
EPS Next Y-3.83%
EPS Next 2Y3.89%
EPS Next 3Y6.26%
EPS Next 5Y6.59%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y3.34%
Revenue growth 5Y2.35%
Sales Q2Q%-13.18%
Revenue Next Year3.51%
Revenue Next 2Y3.28%
Revenue Next 3Y3.22%
Revenue Next 5Y3.66%
EBIT growth 1Y-10.56%
EBIT growth 3Y0.16%
EBIT growth 5Y12.04%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y28.59%
FCF growth 3Y1.61%
FCF growth 5Y-2.06%
OCF growth 1Y28.59%
OCF growth 3Y1.61%
OCF growth 5Y-2.06%