1.53 USD
-0.02 (-1.29%)
Last: Oct 22, 2024, 08:15 PM
Taking everything into account, FANH scores 5 out of 10 in our fundamental rating. FANH was compared to 148 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.
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.
- FANH had positive earnings in each of the past 5 years.
- 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 better Return On Equity (13.45%) than 64.75% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.14%, FANH belongs to the top of the industry, outperforming 85.61% of the companies in the same industry.
- FANH had an Average Return On Invested Capital over the past 3 years of 7.25%. This is significantly below the industry average of 14.94%.
| 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
- The Profit Margin of FANH (8.77%) is comparable to the rest of the industry.
- FANH's Profit Margin has declined in the last couple of years.
- FANH has a worse Operating Margin (6.12%) than 64.03% of its industry peers.
- In the last couple of years the Operating Margin of FANH has declined.
- The Gross Margin of FANH (32.92%) is better 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.
- 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.
- With an excellent Altman-Z score value of 2.34, FANH belongs to the best of the industry, outperforming 93.53% of the companies in the same industry.
- 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.
- With a decent Debt to FCF ratio value of 1.12, FANH is doing good in 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.
- FANH has a Debt to Equity ratio of 0.05. This is amongst the best in the industry. FANH outperforms 86.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 1.12 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.69
WACC7.48%
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.
- Looking at the Current 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.
- 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 better Quick ratio (2.59) than 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.
- FANH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.98%.
- 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.
- FANH is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.76% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 2.22 indicates a rather cheap valuation of FANH.
- Compared to the rest of the industry, the Price/Earnings ratio of FANH indicates a rather cheap valuation: FANH is cheaper than 87.77% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of FANH to the average of the S&P500 Index (28.32), we can say FANH is valued rather cheaply.
- With a Price/Forward Earnings ratio of 2.83, the valuation of FANH can be described as very cheap.
- 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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.22 | ||
| Fwd PE | 2.83 |
4.2 Price Multiples
- FANH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7 | ||
| EV/EBITDA | -3.19 |
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
5. Dividend
5.1 Amount
- No dividends for FANH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FANHUA INC-SPONSORED ADR / FANH FAQ
What is the ChartMill fundamental rating of FANHUA INC-SPONSORED ADR (FANH) stock?
ChartMill assigns a fundamental rating of 5 / 10 to FANH.
What is the valuation status for FANH stock?
ChartMill assigns a valuation rating of 6 / 10 to FANHUA INC-SPONSORED ADR (FANH). This can be considered as Fairly Valued.
How profitable is FANHUA INC-SPONSORED ADR (FANH) stock?
FANHUA INC-SPONSORED ADR (FANH) has a profitability rating of 6 / 10.
What are the PE and PB ratios of FANHUA INC-SPONSORED ADR (FANH) stock?
The Price/Earnings (PE) ratio for FANHUA INC-SPONSORED ADR (FANH) is 2.22 and the Price/Book (PB) ratio is 0.3.
Can you provide the expected EPS growth for FANH stock?
The Earnings per Share (EPS) of FANHUA INC-SPONSORED ADR (FANH) is expected to decline by -25.89% in the next year.