LSE:CSN

Stock Analysis Report

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Executive Summary

Chesnara plc, together with its subsidiaries, engages in the life assurance and pension businesses primarily in the United Kingdom, the Netherlands, and Sweden. More Details


Snowflake Analysis

Flawless balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CSN is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CSN's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0.7%

CSN

3.6%

GB Insurance

1.2%

GB Market


1 Year Return

6.1%

CSN

-2.2%

GB Insurance

-9.6%

GB Market

Return vs Industry: CSN exceeded the UK Insurance industry which returned -2.2% over the past year.

Return vs Market: CSN exceeded the UK Market which returned -9.6% over the past year.


Shareholder returns

CSNIndustryMarket
7 Day0.7%3.6%1.2%
30 Day8.3%19.2%8.6%
90 Day-0.7%10.4%5.4%
1 Year13.6%6.1%1.7%-2.2%-6.1%-9.6%
3 Year-0.8%-17.2%-3.9%-21.0%-0.6%-12.6%
5 Year16.8%-12.5%16.1%-14.2%23.3%-4.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSN (£2.87) is trading below our estimate of fair value (£6.14)

Significantly Below Fair Value: CSN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CSN is poor value based on its PE Ratio (23.8x) compared to the GB Insurance industry average (17.4x).

PE vs Market: CSN is poor value based on its PE Ratio (23.8x) compared to the UK market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: CSN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CSN is good value based on its PB Ratio (0.9x) compared to the GB Insurance industry average (1.3x).


Next Steps

Future Growth

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

-2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSN's earnings are forecast to decline over the next 3 years (-2% per year).

Earnings vs Market: CSN's earnings are forecast to decline over the next 3 years (-2% per year).

High Growth Earnings: CSN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if CSN's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if CSN's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CSN's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has Chesnara performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSN has a large one-off loss of £11.1M impacting its June 30 2020 financial results.

Growing Profit Margin: CSN's current net profit margins (4.9%) are lower than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: CSN's earnings have grown by 8.5% per year over the past 5 years.

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

Earnings vs Industry: CSN had negative earnings growth (-68.2%) over the past year, making it difficult to compare to the Insurance industry average (-7.6%).


Return on Equity

High ROE: CSN's Return on Equity (3.8%) is considered low.


Next Steps

Financial Health

How is Chesnara's financial position?


Financial Position Analysis

Short Term Liabilities: CSN's short term assets (£7.7B) exceed its short term liabilities (£144.2M).

Long Term Liabilities: CSN's short term assets (£7.7B) exceed its long term liabilities (£7.6B).


Debt to Equity History and Analysis

Debt Level: CSN's debt to equity ratio (17.1%) is considered satisfactory.

Reducing Debt: CSN's debt to equity ratio has reduced from 31.5% to 17.1% over the past 5 years.

Debt Coverage: CSN's debt is well covered by operating cash flow (89.9%).

Interest Coverage: CSN's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Chesnara current dividend yield, its reliability and sustainability?

7.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CSN's dividend (7.43%) is higher than the bottom 25% of dividend payers in the UK market (1.72%).

High Dividend: CSN's dividend (7.43%) is in the top 25% of dividend payers in the UK market (4.88%)


Stability and Growth of Payments

Stable Dividend: CSN's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (178.8%), CSN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CSN's dividends in 3 years are not forecast to be well covered by earnings (98.5% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

John Deane (62 yo)

5.83yrs

Tenure

UK£1,111,000

Compensation

Mr. John Deane, FIA, has been the Chief Executive Officer of Chesnara plc since January 1, 2015. Mr. Deane served as the Chief Executive of Intermediary Business at The Royal London Mutual Insurance Societ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD1.48M) is above average for companies of similar size in the UK market ($USD871.97K).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Deane
CEO & Executive Director5.83yrsUK£1.11m0.087%
£ 375.5k
David Anthony Rimmington
Group Finance Director & Executive Director7.5yrsUK£639.00k0.048%
£ 207.1k
Alastair Lonie
Company Secretary2.58yrsno datano data

5.8yrs

Average Tenure

Experienced Management: CSN's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Deane
CEO & Executive Director5.83yrsUK£1.11m0.087%
£ 375.5k
David Anthony Rimmington
Group Finance Director & Executive Director7.5yrsUK£639.00k0.048%
£ 207.1k
Eamonn Flanagan
Independent Non-Executive Director0.33yrno data0.020%
£ 85.9k
Mark Hesketh
Non-Executive Independent Director1.92yrsUK£62.00k0.0035%
£ 15.0k
Luke Savage
Independent Chairman0.75yrno data0.013%
£ 57.3k
Jane Dale
Senior Independent Non-Executive Director2.08yrsUK£68.00k0.0022%
£ 9.5k
Veronica Oak
Non-Executive Independent Director7.83yrsUK£62.00k0.0020%
£ 8.6k

2.1yrs

Average Tenure

59yo

Average Age

Experienced Board: CSN's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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

Chesnara plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chesnara plc
  • Ticker: CSN
  • Exchange: LSE
  • Founded: 2003
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: UK£429.938m
  • Shares outstanding: 150.07m
  • Website: https://www.chesnara.co.uk

Number of Employees


Location

  • Chesnara plc
  • Building 4
  • 2nd Floor
  • Preston
  • Lancashire
  • PR1 8UY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSNLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2004
CSNlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2004

Biography

Chesnara plc, together with its subsidiaries, engages in the life assurance and pension businesses primarily in the United Kingdom, the Netherlands, and Sweden. It operates through CA, Movestic, Waard Grou...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 21:08
End of Day Share Price2020/11/23 00:00
Earnings2020/06/30
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.