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CSN

Chesnara LSE:CSN Stock Report

Last Price

UK£3.10

Market Cap

UK£465.5m

7D

9.3%

1Y

8.8%

Updated

11 Aug, 2022

Data

Company Financials +
CSN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance3/6
Financial Health5/6
Dividends4/6

CSN Stock Overview

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

Chesnara Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Chesnara
Historical stock prices
Current Share PriceUK£3.10
52 Week HighUK£3.20
52 Week LowUK£2.54
Beta0.42
1 Month Change9.54%
3 Month Change10.12%
1 Year Change8.77%
3 Year Change4.20%
5 Year Change-20.51%
Change since IPO175.56%

Recent News & Updates

Apr 03
Chesnara's (LON:CSN) Dividend Will Be Increased To UK£0.15

Chesnara's (LON:CSN) Dividend Will Be Increased To UK£0.15

Chesnara plc's ( LON:CSN ) dividend will be increasing to UK£0.15 on 24th of May. This makes the dividend yield 7.3...

Shareholder Returns

CSNGB InsuranceGB Market
7D9.3%5.3%-0.3%
1Y8.8%-21.1%-9.1%

Return vs Industry: CSN exceeded the UK Insurance industry which returned -20.7% over the past year.

Return vs Market: CSN exceeded the UK Market which returned -8.9% over the past year.

Price Volatility

Is CSN's price volatile compared to industry and market?
CSN volatility
CSN Average Weekly Movement3.3%
Insurance Industry Average Movement4.6%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: CSN is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CSN's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003339Steve Murrayhttps://www.chesnara.co.uk

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 Group, and Scildon segments. The company underwrites life risks, such as death, disability, health, and accident; and provides a portfolio of investment contracts for the savings and retirement needs of customers through asset management, as well as general insurance products.

Chesnara Fundamentals Summary

How do Chesnara's earnings and revenue compare to its market cap?
CSN fundamental statistics
Market CapUK£465.49m
Earnings (TTM)UK£27.29m
Revenue (TTM)UK£1.50b

17.1x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSN income statement (TTM)
RevenueUK£1.50b
Cost of RevenueUK£1.40b
Gross ProfitUK£99.46m
Other ExpensesUK£72.17m
EarningsUK£27.29m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 31, 2022

Earnings per share (EPS)0.18
Gross Margin6.63%
Net Profit Margin1.82%
Debt/Equity Ratio10.4%

How did CSN perform over the long term?

See historical performance and comparison

Dividends

7.3%

Current Dividend Yield

124%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CSN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CSN?

Other financial metrics that can be useful for relative valuation.

CSN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.3x
Enterprise Value/EBITDA13.9x
PEG Ratio2.6x

Price to Earnings Ratio vs Peers

How does CSN's PE Ratio compare to its peers?

CSN PE Ratio vs Peers
The above table shows the PE ratio for CSN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.8x
HSD Hansard Global
12.7x33.1%UK£49.4m
LGEN Legal & General Group
7.9x3.3%UK£16.7b
SBRE Sabre Insurance Group
19.8x33.1%UK£308.4m
PRU Prudential
26.8x21.6%UK£27.1b
CSN Chesnara
17.1x6.5%UK£465.5m

Price-To-Earnings vs Peers: CSN is expensive based on its Price-To-Earnings Ratio (17.1x) compared to the peer average (16.8x).


Price to Earnings Ratio vs Industry

How does CSN's PE Ratio compare vs other companies in the European Insurance Industry?

Price-To-Earnings vs Industry: CSN is expensive based on its Price-To-Earnings Ratio (17.1x) compared to the UK Insurance industry average (16x)


Price to Earnings Ratio vs Fair Ratio

What is CSN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CSN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.1x
Fair PE Ratio12.5x

Price-To-Earnings vs Fair Ratio: CSN is expensive based on its Price-To-Earnings Ratio (17.1x) compared to the estimated Fair Price-To-Earnings Ratio (12.5x).


Share Price vs Fair Value

What is the Fair Price of CSN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CSN (£3.1) is trading below our estimate of fair value (£4.49)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSN's forecast earnings growth (6.5% per year) is above the savings rate (0.9%).

Earnings vs Market: CSN's earnings (6.5% per year) are forecast to grow slower than the UK market (9.4% per year).

High Growth Earnings: CSN's earnings are forecast to grow, but not significantly.

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 (9%).


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Past Performance

How has Chesnara performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-15.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CSN has high quality earnings.

Growing Profit Margin: CSN's current net profit margins (1.8%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: CSN's earnings have declined by 15.5% per year over the past 5 years.

Accelerating Growth: CSN's earnings growth over the past year (28.8%) exceeds its 5-year average (-15.5% per year).

Earnings vs Industry: CSN earnings growth over the past year (28.8%) exceeded the Insurance industry -13.9%.


Return on Equity

High ROE: CSN's Return on Equity (6%) is considered low.


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Financial Health

How is Chesnara's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CSN's short term assets (£8.0B) exceed its short term liabilities (£882.3M).

Long Term Liabilities: CSN's short term assets (£8.0B) do not cover its long term liabilities (£8.3B).


Debt to Equity History and Analysis

Debt Level: CSN has more cash than its total debt.

Reducing Debt: CSN's debt to equity ratio has reduced from 22.6% to 10.4% over the past 5 years.

Debt Coverage: CSN's debt is well covered by operating cash flow (56.1%).

Interest Coverage: CSN's interest payments on its debt are well covered by EBIT (13.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


7.29%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CSN's dividend (7.29%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: CSN's dividend (7.29%) is in the top 25% of dividend payers in the UK market (5.11%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (124.3%), CSN's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (147.8%), CSN's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.6yrs

Average management tenure


CEO

Steve Murray (44 yo)

0.83

Tenure

UK£968,800

Compensation

Mr. Steven Grant Murray, also known as Steve, served as a Group Chief Commercial Officer at The Royal London Mutual Insurance Society Limited since January 2021 until 2021. He serves as Group Chief Executi...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD1.18M) is about average for companies of similar size in the UK market ($USD1.06M).

Compensation vs Earnings: Insufficient data to compare Steve's compensation with company performance.


Leadership Team

Experienced Management: CSN's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: CSN's board of directors are not considered experienced ( 2.3 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 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
  • Implied Market Cap: UK£465.488m
  • Shares outstanding: 150.16m
  • Website: https://www.chesnara.co.uk

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.