FANHUA INC-SPONSORED ADR (FANH) Stock Fundamental Analysis
NASDAQ:FANH - US30712A1034 - ADR
1.53 USD
-0.02 (-1.29%)
Taking everything into account, FANH scores 5 out of 10 in our fundamental rating. FANH was compared to 143 industry peers in the Insurance industry. FANH is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. FANH is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FANH was profitable.
FANH had a positive operating cash flow in the past year.
Each year in the past 5 years FANH has been profitable.
FANH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FANH (7.34%) is better than 92.81% of its industry peers.
FANH has a Return On Equity of 13.45%. This is in the better half of the industry: FANH outperforms 64.75% of its industry peers.
FANH has a better Return On Invested Capital (5.14%) than 85.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FANH is above the industry average of 4.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 13.45% | ||
| ROIC | 5.14% |
ROA(3y)5.97%
ROA(5y)6.42%
ROE(3y)11.13%
ROE(5y)11.56%
ROIC(3y)7.25%
ROIC(5y)9.68%
1.3 Margins
FANH has a Profit Margin of 8.77%. This is comparable to the rest of the industry: FANH outperforms 56.83% of its industry peers.
FANH's Profit Margin has declined in the last couple of years.
FANH has a Operating Margin of 6.12%. This is in the lower half of the industry: FANH underperforms 64.03% of its industry peers.
In the last couple of years the Operating Margin of FANH has declined.
FANH has a better Gross Margin (32.92%) than 92.09% of its industry peers.
FANH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.12% | ||
| PM (TTM) | 8.77% | ||
| GM | 32.92% |
OM growth 3Y-12.84%
OM growth 5Y-12.97%
PM growth 3Y2.22%
PM growth 5Y-12.98%
GM growth 3Y0.68%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
FANH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FANH has more shares outstanding than it did 1 year ago.
FANH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FANH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.34 indicates that FANH is not a great score, but indicates only limited risk for bankruptcy at the moment.
FANH has a Altman-Z score of 2.34. This is amongst the best in the industry. FANH outperforms 93.53% of its industry peers.
The Debt to FCF ratio of FANH is 1.12, which is an excellent value as it means it would take FANH, only 1.12 years of fcf income to pay off all of its debts.
FANH has a better Debt to FCF ratio (1.12) than 62.59% of its industry peers.
FANH has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.05, FANH belongs to the top of the industry, outperforming 86.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.12 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.69
WACC7.48%
2.3 Liquidity
A Current Ratio of 2.59 indicates that FANH has no problem at all paying its short term obligations.
The Current ratio of FANH (2.59) is better than 94.24% of its industry peers.
FANH has a Quick Ratio of 2.59. This indicates that FANH is financially healthy and has no problem in meeting its short term obligations.
FANH has a Quick ratio of 2.59. This is amongst the best in the industry. FANH outperforms 94.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 2.59 |
3. Growth
3.1 Past
FANH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 189.43%, which is quite impressive.
Measured over the past years, FANH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.87% on average per year.
The Revenue has grown by 14.98% in the past year. This is quite good.
Measured over the past years, FANH shows a decrease in Revenue. The Revenue has been decreasing by -1.62% on average per year.
EPS 1Y (TTM)189.43%
EPS 3Y1.38%
EPS 5Y-11.87%
EPS Q2Q%-93.67%
Revenue 1Y (TTM)14.98%
Revenue growth 3Y-0.72%
Revenue growth 5Y-1.62%
Sales Q2Q%-0.83%
3.2 Future
The Earnings Per Share is expected to decrease by -8.88% on average over the next years.
Based on estimates for the next years, FANH will show a decrease in Revenue. The Revenue will decrease by -6.76% on average per year.
EPS Next Y-25.89%
EPS Next 2Y-8.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-22.25%
Revenue Next 2Y-6.76%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FANH is valuated cheaply with a Price/Earnings ratio of 2.22.
FANH's Price/Earnings ratio is rather cheap when compared to the industry. FANH is cheaper than 87.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.17. FANH is valued rather cheaply when compared to this.
FANH is valuated cheaply with a Price/Forward Earnings ratio of 2.83.
Based on the Price/Forward Earnings ratio, FANH is valued cheaper than 84.17% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FANH to the average of the S&P500 Index (22.78), we can say FANH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.22 | ||
| Fwd PE | 2.83 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as FANH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7 | ||
| EV/EBITDA | -3.19 |
4.3 Compensation for Growth
The decent profitability rating of FANH may justify a higher PE ratio.
FANH's earnings are expected to decrease with -8.88% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.88%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for FANH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:FANH (10/22/2024, 8:15:50 PM)
1.53
-0.02 (-1.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners4.37%
Inst Owner Change-100%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap86.76M
Analysts43.33
Price Target6.12 (300%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.22 | ||
| Fwd PE | 2.83 | ||
| P/S | 0.19 | ||
| P/FCF | 7 | ||
| P/OCF | 6.1 | ||
| P/B | 0.3 | ||
| P/tB | 0.37 | ||
| EV/EBITDA | -3.19 |
EPS(TTM)0.69
EY45.1%
EPS(NY)0.54
Fwd EY35.37%
FCF(TTM)0.22
FCFY14.28%
OCF(TTM)0.25
OCFY16.39%
SpS7.93
BVpS5.17
TBVpS4.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.34% | ||
| ROE | 13.45% | ||
| ROCE | 6.55% | ||
| ROIC | 5.14% | ||
| ROICexc | 6.85% | ||
| ROICexgc | 8.38% | ||
| OM | 6.12% | ||
| PM (TTM) | 8.77% | ||
| GM | 32.92% | ||
| FCFM | 2.76% |
ROA(3y)5.97%
ROA(5y)6.42%
ROE(3y)11.13%
ROE(5y)11.56%
ROIC(3y)7.25%
ROIC(5y)9.68%
ROICexc(3y)15.75%
ROICexc(5y)28.34%
ROICexgc(3y)18.36%
ROICexgc(5y)33.72%
ROCE(3y)9.1%
ROCE(5y)12.03%
ROICexcg growth 3Y-37.7%
ROICexcg growth 5Y-28.74%
ROICexc growth 3Y-39.39%
ROICexc growth 5Y-30.05%
OM growth 3Y-12.84%
OM growth 5Y-12.97%
PM growth 3Y2.22%
PM growth 5Y-12.98%
GM growth 3Y0.68%
GM growth 5Y0.4%
F-Score8
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.12 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.99% | ||
| Profit Quality | 31.42% | ||
| Current Ratio | 2.59 | ||
| Quick Ratio | 2.59 | ||
| Altman-Z | 2.34 |
F-Score8
WACC7.48%
ROIC/WACC0.69
Cap/Depr(3y)201.65%
Cap/Depr(5y)160.89%
Cap/Sales(3y)1.38%
Cap/Sales(5y)1.03%
Profit Quality(3y)43.2%
Profit Quality(5y)71.56%
High Growth Momentum
Growth
EPS 1Y (TTM)189.43%
EPS 3Y1.38%
EPS 5Y-11.87%
EPS Q2Q%-93.67%
EPS Next Y-25.89%
EPS Next 2Y-8.88%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.98%
Revenue growth 3Y-0.72%
Revenue growth 5Y-1.62%
Sales Q2Q%-0.83%
Revenue Next Year-22.25%
Revenue Next 2Y-6.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y16.08%
EBIT growth 3Y-13.47%
EBIT growth 5Y-14.38%
EBIT Next Year-0.95%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y80.57%
FCF growth 3Y-38.78%
FCF growth 5Y-29.25%
OCF growth 1Y107.2%
OCF growth 3Y-36.75%
OCF growth 5Y-27.94%