FANH

FanhuaNasdaqGS:FANH Stock Report

Market Cap

US$590.6m

7D

-17.2%

1Y

-41.7%

Updated

19 Sep, 2021

Data

Company Financials +
FANH fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance4/6
Financial Health6/6
Dividends5/6

FANH Overview

Fanhua Inc., together with its subsidiary, distributes insurance products in China.

Fanhua Competitors

Marsh & McLennan Companies

NYSE:MMC

US$78.9b

Willis Towers Watson

NasdaqGS:WLTW

US$29.7b

Waterdrop

NYSE:WDH

US$1.2b

Huize Holding

NasdaqGM:HUIZ

US$113.3m

Price History & Performance

Summary of all time highs, changes and price drops for Fanhua
Historical stock prices
Current Share PriceUS$11.00
52 Week HighUS$10.83
52 Week LowUS$19.01
Beta0.53
1 Month Change-24.30%
3 Month Change-26.67%
1 Year Change-41.71%
3 Year Change-61.27%
5 Year Change33.98%
Change since IPO-56.51%

Recent News & Updates

Sep 09

Fanhua: Strong, Long-Term Potential

Shares are heavily oversold on the long-term chart. Revenue, book value, earnings and cash flow are all on the rise. When we include the strong dividend yield, we see limited downside risk here.

Shareholder Returns

FANHUS InsuranceUS Market
7D-17.2%-0.7%-0.6%
1Y-41.7%35.9%33.8%

Return vs Industry: FANH underperformed the US Insurance industry which returned 35.9% over the past year.

Return vs Market: FANH underperformed the US Market which returned 33.8% over the past year.

Price Volatility

Is FANH's price volatile compared to industry and market?
FANH volatility
FANH Beta0.53
Industry Beta0.97
Market Beta1

Stable Share Price: FANH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: FANH's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19984,926Chunlin Wanghttps://www.fanhuaholdings.com

Fanhua Inc., together with its subsidiary, 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 that primarily include individual accident, travel, homeowner, and indemnity medical insurance 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.

Fanhua Fundamentals Summary

How do Fanhua's earnings and revenue compare to its market cap?
FANH fundamental statistics
Market CapCN¥3.82b
Earnings (TTM)CN¥328.94m
Revenue (TTM)CN¥3.45b

11.6x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FANH income statement (TTM)
RevenueCN¥3.45b
Cost of RevenueCN¥2.29b
Gross ProfitCN¥1.16b
ExpensesCN¥827.36m
EarningsCN¥328.94m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)6.13
Gross Margin33.53%
Net Profit Margin9.54%
Debt/Equity Ratio0%

How did FANH perform over the long term?

See historical performance and comparison

Dividends

5.4%

Current Dividend Yield

80%

Payout Ratio

Valuation

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

46.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FANH ($11) is trading below our estimate of fair value ($20.46)

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


Price To Earnings Ratio

PE vs Industry: FANH is poor value based on its PE Ratio (11.6x) compared to the US Insurance industry average (9.5x).

PE vs Market: FANH is good value based on its PE Ratio (11.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: FANH is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: FANH is overvalued based on its PB Ratio (2x) compared to the US Insurance industry average (1.1x).


Future Growth

How is Fanhua forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

29.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FANH's forecast earnings growth (29.8% per year) is above the savings rate (2%).

Earnings vs Market: FANH's earnings (29.8% per year) are forecast to grow faster than the US market (14.8% per year).

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

Revenue vs Market: FANH's revenue (13.3% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: FANH's revenue (13.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Fanhua performed over the past 5 years?

-0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FANH has high quality earnings.

Growing Profit Margin: FANH's current net profit margins (9.5%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: FANH's earnings have declined by 0.2% per year over the past 5 years.

Accelerating Growth: FANH's earnings growth over the past year (270.6%) exceeds its 5-year average (-0.2% per year).

Earnings vs Industry: FANH earnings growth over the past year (270.6%) exceeded the Insurance industry 76%.


Return on Equity

High ROE: FANH's Return on Equity (16.6%) is considered low.


Financial Health

How is Fanhua's financial position?


Financial Position Analysis

Short Term Liabilities: FANH's short term assets (CN¥2.2B) exceed its short term liabilities (CN¥786.3M).

Long Term Liabilities: FANH's short term assets (CN¥2.2B) exceed its long term liabilities (CN¥270.7M).


Debt to Equity History and Analysis

Debt Level: FANH is debt free.

Reducing Debt: FANH has not had any debt for past 5 years.

Debt Coverage: FANH has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FANH has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

5.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FANH's dividend (5.43%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: FANH's dividend (5.43%) is in the top 25% of dividend payers in the US market (3.6%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.5%), FANH's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FANH's dividends in 3 years are forecast to be covered by earnings (78.7% payout ratio).


Next Steps

Management

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

13.4yrs

Average management tenure


CEO

Chunlin Wang (52 yo)

9.92yrs

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

Experienced Management: FANH's management team is seasoned and experienced (13.4 years average tenure).


Board Members

Experienced Board: FANH's board of directors are seasoned and experienced ( 13 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 employee growth, exchange listings and data sources


Key Information

  • Name: Fanhua Inc.
  • Ticker: FANH
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Market Cap: US$590.640m
  • Shares outstanding: 53.69m
  • Website: https://www.fanhuaholdings.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:13
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.