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FANHUA INC-SPONSORED ADR (FANH) Stock Fundamental Analysis

NASDAQ:FANH - Nasdaq - US30712A1034 - ADR - Currency: USD

1.53  -0.02 (-1.29%)

Fundamental Rating

5

FANH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. FANH has an excellent financial health rating, but there are some minor concerns on its profitability. FANH is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year FANH was profitable.
In the past year FANH had a positive cash flow from operations.
In the past 5 years FANH has always been profitable.
In the past 5 years FANH always reported a positive cash flow from operatings.
FANH Yearly Net Income VS EBIT VS OCF VS FCFFANH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M

1.2 Ratios

FANH has a Return On Assets of 7.34%. This is amongst the best in the industry. FANH outperforms 92.81% of its industry peers.
FANH's Return On Equity of 13.45% is fine compared to the rest of the industry. FANH outperforms 64.75% of its industry peers.
FANH's Return On Invested Capital of 5.14% is amongst the best of the industry. FANH outperforms 85.61% of its industry peers.
FANH had an Average Return On Invested Capital over the past 3 years of 7.25%. This is above the industry average of 4.07%.
Industry RankSector 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%
FANH Yearly ROA, ROE, ROICFANH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20

1.3 Margins

Looking at the Profit Margin, with a value of 8.77%, FANH is in line with its industry, outperforming 56.83% of the companies in the same industry.
FANH's Profit Margin has declined in the last couple of years.
The Operating Margin of FANH (6.12%) is worse than 64.03% of its industry peers.
In the last couple of years the Operating Margin of FANH has declined.
FANH's Gross Margin of 32.92% is amongst the best of the industry. FANH outperforms 92.09% of its industry peers.
FANH's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
FANH Yearly Profit, Operating, Gross MarginsFANH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FANH is destroying value.
The number of shares outstanding for FANH has been increased compared to 1 year ago.
Compared to 5 years ago, FANH has more shares outstanding
FANH has a worse debt/assets ratio than last year.
FANH Yearly Shares OutstandingFANH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
FANH Yearly Total Debt VS Total AssetsFANH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

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.
The Altman-Z score of FANH (2.34) is better than 93.53% of its industry peers.
FANH has a debt to FCF ratio of 1.12. This is a very positive value and a sign of high solvency as it would only need 1.12 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.12, FANH is in the better half of the industry, outperforming 62.59% of the companies in the same industry.
FANH has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FANH (0.05) is better than 86.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 1.12
Altman-Z 2.34
ROIC/WACC0.69
WACC7.48%
FANH Yearly LT Debt VS Equity VS FCFFANH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.3 Liquidity

FANH has a Current Ratio of 2.59. This indicates that FANH is financially healthy and has no problem in meeting its short term obligations.
FANH has a Current ratio of 2.59. This is amongst the best in the industry. FANH outperforms 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.
Looking at the Quick ratio, with a value of 2.59, FANH belongs to the top of the industry, outperforming 94.24% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.59
Quick Ratio 2.59
FANH Yearly Current Assets VS Current LiabilitesFANH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

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3

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.
FANH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.87% yearly.
Looking at the last year, FANH shows a quite strong growth in Revenue. The Revenue has grown by 14.98% in the last year.
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

Based on estimates for the next years, FANH will show a decrease in Earnings Per Share. The EPS will decrease by -8.88% on average per year.
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

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
FANH Yearly Revenue VS EstimatesFANH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
FANH Yearly EPS VS EstimatesFANH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 2.22 indicates a rather cheap valuation of FANH.
Based on the Price/Earnings ratio, FANH is valued cheaply inside the industry as 87.77% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of FANH to the average of the S&P500 Index (27.30), we can say FANH is valued rather cheaply.
A Price/Forward Earnings ratio of 2.83 indicates a rather cheap valuation of FANH.
FANH's Price/Forward Earnings ratio is rather cheap when compared to the industry. FANH is cheaper than 84.17% of the companies in the same industry.
FANH is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 2.22
Fwd PE 2.83
FANH Price Earnings VS Forward Price EarningsFANH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of FANH is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 7
EV/EBITDA -3.19
FANH Per share dataFANH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

FANH has a very decent profitability rating, which 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

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0

5. Dividend

5.1 Amount

No dividends for FANH!.
Industry RankSector Rank
Dividend Yield N/A

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FANHUA INC-SPONSORED ADR

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)09-18 2024-09-18/bmo
Earnings (Next)11-18 2024-11-18/bmo
Inst Owners4.37%
Inst Owner Change0%
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%