NasdaqGS:FANH

Stock Analysis Report

Executive Summary

Fanhua Inc. distributes insurance products in China.

Snowflake

Fundamentals

Reasonable growth potential with proven track record and pays a dividend.


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


Market Performance


7 Day Return

-1.5%

FANH

0.5%

US Insurance

1.3%

US Market


1 Year Return

-7.6%

FANH

15.0%

US Insurance

5.9%

US Market

Return vs Industry: FANH underperformed the US Insurance industry which returned 15% over the past year.

Return vs Market: FANH underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

FANHIndustryMarket
7 Day-1.5%0.5%1.3%
30 Day-7.5%-1.5%-1.9%
90 Day-28.9%-3.3%-1.8%
1 Year-3.8%-7.6%17.8%15.0%8.3%5.9%
3 Year243.5%214.3%42.1%31.2%45.6%36.2%
5 Year402.6%359.8%74.2%53.4%66.1%47.9%

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

Valuation

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

18.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: FANH ($24.92) is trading above our estimate of fair value ($12.25)

Significantly Undervalued: FANH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FANH is poor value based on its PE Ratio (18.2x) compared to the Insurance industry average (15.6x).

PE vs Market: FANH is poor value based on its PE Ratio (18.2x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: FANH is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: FANH is overvalued based on its PB Ratio (4.2x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

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

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FANH's forecast earnings growth (3.7% per year) is above the savings rate (2.7%).

Earnings vs Market: FANH's earnings (3.7% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: FANH's revenue (25% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: FANH's revenue (25% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FANH's Return on Equity is forecast to be high in 3 years time (27.7%)


Next Steps

Past Performance

How has Fanhua performed over the past 5 years?

35.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FANH's earnings have grown significantly by 35% per year over the past 5 years.

Accelerating Growth: FANH's earnings growth over the past year (2%) is below its 5-year average (35% per year).

Earnings vs Industry: FANH earnings growth over the past year (2%) underperformed the Insurance industry 3.1%.


Return on Equity

High ROE: FANH's Return on Equity (23.3%) is considered high.


Return on Assets

ROA vs Industry: FANH has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

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


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: FANH has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

4.81%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years5.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FANH's dividend (4.81%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: FANH's dividend (4.81%) is in the top 25% of dividend payers in the US market (3.77%)

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 (80.4%), FANH's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FANH's dividends in 3 years are not forecast to be well covered by earnings (104.4% payout ratio).


Next Steps

Management

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

11.5yrs

Average management tenure


CEO

Chunlin Wang (50yo)

8yrs

Tenure

0

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  ...


Management Age and Tenure

11.5yrs

Average Tenure

50yo

Average Age

Experienced Management: FANH's management team is seasoned and experienced (11.5 years average tenure).


Board Age and Tenure

11.1yrs

Average Tenure

53yo

Average Age

Experienced Board: FANH's board of directors are seasoned and experienced ( 11.1 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

  • Chunlin Wang (50yo)

    Chairman & CEO

    • Tenure: 8yrs
  • Peng Ge (48yo)

    CFO & Executive Director

    • Tenure: 2.8yrs
  • Yinan Hu (53yo)

    Founder & Director

    • Tenure: 21.8yrs
  • Oasis Qiu

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Yunxiang Tang (73yo)

    Independent Director

    • Tenure: 7.4yrs
  • Steven Markscheid (65yo)

    Independent Director

    • Tenure: 12.2yrs
  • Chunlin Wang (50yo)

    Chairman & CEO

    • Tenure: 8yrs
  • Peng Ge (48yo)

    CFO & Executive Director

    • Tenure: 2.8yrs
  • Allen Warren Lueth (50yo)

    Independent Director

    • Tenure: 12.2yrs
  • Yinan Hu (53yo)

    Founder & Director

    • Tenure: 21.8yrs
  • Mengbo Yin (64yo)

    Independent Director

    • Tenure: 11.1yrs

Company Information

Fanhua Inc.'s company bio, 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$1.344b
  • 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)YesADS EACH REPR 20 ORD SHSDEEUROct 2007
FANHNasdaqGS (Nasdaq Global Select)YesADS EACH REPR 20 ORD SHSUSUSDOct 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:59
End of Day Share Price2019/10/14 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.