DB:4CIA

Stock Analysis Report

Executive Summary

Fanhua Inc. distributes insurance products in China.


Snowflake Analysis

High growth potential average dividend payer.


Similar Companies

Share Price & News

How has Fanhua's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4CIA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.7%

4CIA

-3.7%

DE Insurance

-0.6%

DE Market


1 Year Return

-21.3%

4CIA

-22.9%

DE Insurance

-20.9%

DE Market

Return vs Industry: 4CIA exceeded the German Insurance industry which returned -22.9% over the past year.

Return vs Market: 4CIA matched the German Market which returned -20.9% over the past year.


Shareholder returns

4CIAIndustryMarket
7 Day-4.7%-3.7%-0.6%
30 Day3.4%-23.7%-18.6%
90 Day-22.9%-31.7%-26.2%
1 Year-17.4%-21.3%-19.5%-22.9%-18.6%-20.9%
3 Year141.7%115.2%3.7%-8.8%-19.0%-25.8%
5 Year157.0%128.8%13.3%-9.3%-21.2%-31.8%

Price Volatility Vs. Market

How volatile is Fanhua's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Fanhua undervalued compared to its fair value and its price relative to the market?

17.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 4CIA (€18.2) is trading below our estimate of fair value (€22.1)

Significantly Below Fair Value: 4CIA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 4CIA is poor value based on its PE Ratio (41.4x) compared to the Insurance industry average (9x).

PE vs Market: 4CIA is poor value based on its PE Ratio (41.4x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: 4CIA is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 4CIA is overvalued based on its PB Ratio (4x) compared to the DE Insurance industry average (0.8x).


Next Steps

Future Growth

How is Fanhua forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

47.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4CIA's forecast earnings growth (47.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: 4CIA's earnings (47.6% per year) are forecast to grow faster than the German market (14.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 4CIA's revenue (5.1% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: 4CIA's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4CIA's Return on Equity is forecast to be high in 3 years time (22.6%)


Next Steps

Past Performance

How has Fanhua performed over the past 5 years?

28.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4CIA has high quality earnings.

Growing Profit Margin: 4CIA's current net profit margins (5.1%) are lower than last year (17.6%).


Past Earnings Growth Analysis

Earnings Trend: 4CIA's earnings have grown significantly by 28.4% per year over the past 5 years.

Accelerating Growth: 4CIA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4CIA had negative earnings growth (-69%) over the past year, making it difficult to compare to the Insurance industry average (17.9%).


Return on Equity

High ROE: 4CIA's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is Fanhua's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 4CIA has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 4CIA's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: 4CIA's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 4CIA has a sufficient allowance for bad loans.

Low Risk Liabilities: 4CIA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 4CIA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 4CIA has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 4CIA has an appropriate level of bad loans.


Next Steps

Dividend

What is Fanhua's current dividend yield, its reliability and sustainability?

5.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 4CIA's dividend (5.91%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: 4CIA's dividend (5.91%) is in the top 25% of dividend payers in the German market (4.86%)


Stability and Growth of Payments

Stable Dividend: 4CIA's dividend payments have been volatile in the past 10 years.

Growing Dividend: 4CIA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (241.6%), 4CIA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 4CIA's dividends in 3 years are forecast to be covered by earnings (72.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.0yrs

Average management tenure


CEO

Chunlin Wang (50yo)

8.5s

Tenure

Mr. Chunlin Wang has been the Chief Executive Officer of Fanhua Inc. since October 2011. Mr. Wang served as the Chief Operating Officer of Cninsure from April 2011 to October 2011 and its Head of Property  ...


Leadership Team

NamePositionTenureCompensationOwnership
Chunlin Wang
Chairman & CEO8.5yrsno datano data
Yinan Hu
Founder & Director22.25yrsno data18.52% CN¥186.9m
Peng Ge
CFO & Executive Director3.33yrsno data4.5% CN¥45.4m
Oasis Qiu
Investor Relations Managerno datano datano data

12.0yrs

Average Tenure

50yo

Average Age

Experienced Management: 4CIA's management team is seasoned and experienced (12 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chunlin Wang
Chairman & CEO8.5yrsno datano data
Yinan Hu
Founder & Director22.25yrsno data18.52% CN¥186.9m
Peng Ge
CFO & Executive Director3.33yrsno data4.5% CN¥45.4m
Yunxiang Tang
Independent Director7.92yrsno datano data
Stephen Markscheid
Independent Director12.67yrsno datano data
Allen Warren Lueth
Independent Director12.67yrsno datano data
Mengbo Yin
Independent Director11.58yrsno datano data

11.6yrs

Average Tenure

53yo

Average Age

Experienced Board: 4CIA's board of directors are seasoned and experienced ( 11.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Fanhua Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fanhua Inc.
  • Ticker: 4CIA
  • Exchange: DB
  • Founded: 1998
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Market Cap: US$1.089b
  • Listing Market Cap: US$1.009b
  • Shares outstanding: 53.94m
  • Website: https://www.fanhuaholdings.com

Number of Employees


Location

  • Fanhua Inc.
  • Pearl River Tower
  • 27th Floor
  • Guangzhou
  • Guangdong Province
  • 510623
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4CIADB (Deutsche Boerse AG)YesSPONSORED ADRDEEUROct 2007
FANHNasdaqGS (Nasdaq Global Select)YesSPONSORED ADRUSUSDOct 2007

Biography

Fanhua Inc. distributes insurance products in China. It operates through two segments, Insurance Agency and Claims Adjusting. The Insurance Agency segment provides property and casualty insurance products, including automobile, individual accident, travel, disability income, homeowner, and other property and casualty products; and life insurance products, such as individual health, individual whole life, individual term life, individual endowment life, and individual annuity, as well as participating insurance products. The Claims Adjusting segment offers pre-underwriting survey, claims adjusting, residual value disposal, loading and unloading supervision, and consulting services. The company also operates baoxian.com, an online insurance platform, which allows customers to search for, and purchase a range of insurance products; Lan Zhanggui, an Internet-based all-in-one application; and ehuzhu.com, an online non-profit mutual aid platform, as well as CNpad Auto, an Internet-based auto insurance platform. It serves customers through insurance sales and service group, and insurance agencies, as well as sales and service branches and outlets, registered independent sales agents, and in-house claims adjustors. The company was formerly known as CNinsure Inc. and changed its name to Fanhua Inc. in December 2016. Fanhua Inc. was founded in 1998 and is headquartered in Guangzhou, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 04:26
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.