LSE:CSN

Stock Analysis Report

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.

Snowflake

Fundamentals

Undervalued established 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


Market Performance


7 Day Return

0.6%

CSN

5.2%

GB Insurance

1.7%

GB Market


1 Year Return

-23.3%

CSN

0.9%

GB Insurance

2.9%

GB Market

Return vs Industry: CSN underperformed the UK Insurance industry which returned 0.9% over the past year.

Return vs Market: CSN underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

CSNIndustryMarket
7 Day0.6%5.2%1.7%
30 Day-3.4%2.9%-0.7%
90 Day-23.9%-6.4%-1.8%
1 Year-18.4%-23.3%6.0%0.9%8.0%2.9%
3 Year-3.0%-17.6%22.2%5.1%18.2%3.8%
5 Year5.8%-19.6%38.8%9.5%35.6%6.1%

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

Undervalued: CSN (£2.7) is trading below our estimate of fair value (£5.51)

Significantly Undervalued: CSN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CSN is good value based on its PE Ratio (7.1x) compared to the Insurance industry average (14.8x).

PE vs Market: CSN is good value based on its PE Ratio (7.1x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low 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 (0.8x) compared to the GB Insurance industry average (2x).


Next Steps

Future Growth

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

-23.4%

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 (-23.4% per year).

Earnings vs Market: CSN's earnings are forecast to decline over the next 3 years (-23.4% per year).

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

Revenue vs Market: CSN's revenue is expected to decline over the next 3 years (-25% per year).

High Growth Revenue: CSN's revenue is forecast to decline over the next 3 years (-25% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

10.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CSN's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: CSN's earnings growth over the past year (5.9%) is below its 5-year average (10.1% per year).

Earnings vs Industry: CSN earnings growth over the past year (5.9%) underperformed the Insurance industry 15.2%.


Return on Equity

High ROE: CSN's Return on Equity (11.9%) is considered low.


Return on Assets

ROA vs Industry: CSN's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: CSN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Chesnara'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: CSN has a low level of unsold assets or inventory.

Debt Coverage by Assets: CSN's debt is covered by short term assets (assets are 77.553620x debt).


Financial Institutions Analysis

Asset Level: CSN's level of assets compared to its equity is moderate.

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

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

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

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

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


Next Steps

Dividend

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

7.66%

Current Dividend Yield


Dividend Yield vs Market

company7.7%marketbottom25%2.0%markettop25%5.4%industryaverage4.9%forecastin3Years8.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CSN's dividend (7.66%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: CSN's dividend (7.66%) is in the top 25% of dividend payers in the UK market (5.41%)

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 reasonable payout ratio (55.3%), CSN's dividend payments are 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 (92.6% payout ratio).


Next Steps

Management

What is the CEO of Chesnara's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

John Deane (61yo)

4.8yrs

Tenure

UK£965,000

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 ($USD1.24M) is about average for companies of similar size in the UK market ($USD875.32K).

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


Management Age and Tenure

4.8yrs

Average Tenure

Experienced Management: CSN's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

59yo

Average Age

Experienced Board: CSN's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • John Deane (61yo)

    CEO & Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£965.00k
  • David Anthony Rimmington (51yo)

    Group Finance Director & Executive Director

    • Tenure: 6.4yrs
    • Compensation: UK£600.00k
  • Al Lonie

    Company Secretary

    • Tenure: 1.5yrs

Board Members

  • Peter Mason (67yo)

    Non-Executive Chairman

    • Tenure: 10.8yrs
    • Compensation: UK£121.00k
  • Mark Hesketh (58yo)

    Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£5.00k
  • John Deane (61yo)

    CEO & Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£965.00k
  • Jane Dale (59yo)

    Senior Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: UK£66.00k
  • David Anthony Rimmington (51yo)

    Group Finance Director & Executive Director

    • Tenure: 6.4yrs
    • Compensation: UK£600.00k
  • nee France Oak (58yo)

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£60.00k
  • David Brand (65yo)

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£60.00k

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£405.166m
  • Shares outstanding: 150.06m
  • 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 Analysis2019/10/18 20:31
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.