NasdaqGS:FANH

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


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

Stable Share Price: FANH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.6%

FANH

2.5%

US Insurance

2.5%

US Market


1 Year Return

-35.3%

FANH

-12.6%

US Insurance

16.3%

US Market

Return vs Industry: FANH underperformed the US Insurance industry which returned -12.6% over the past year.

Return vs Market: FANH underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

FANHIndustryMarket
7 Day4.6%2.5%2.5%
30 Day-6.9%9.2%5.3%
90 Day5.8%15.7%16.3%
1 Year-32.1%-35.3%-10.3%-12.6%18.8%16.3%
3 Year180.6%150.6%5.9%-2.0%45.0%35.7%
5 Year180.4%147.1%35.2%18.2%75.8%56.8%

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?

90.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FANH ($21) is trading above our estimate of fair value ($12.25)

Significantly Below Fair Value: 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 (90.4x) compared to the US Insurance industry average (14.9x).

PE vs Market: FANH is poor value based on its PE Ratio (90.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: FANH is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: FANH is overvalued based on its PB Ratio (4.2x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

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

69.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FANH's forecast earnings growth (69.2% per year) is above the savings rate (2.2%).

Earnings vs Market: FANH's earnings (69.2% per year) are forecast to grow faster than the US market (23.1% per year).

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

Revenue vs Market: FANH's revenue (20.5% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: FANH's revenue (20.5% per year) is forecast to grow faster 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 (26.4%)


Next Steps

Past Performance

How has Fanhua performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FANH has high quality earnings.

Growing Profit Margin: FANH's current net profit margins (2.5%) are lower than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: FANH's earnings have grown significantly by 21.9% per year over the past 5 years.

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

Earnings vs Industry: FANH had negative earnings growth (-86%) over the past year, making it difficult to compare to the Insurance industry average (-5%).


Return on Equity

High ROE: FANH's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is Fanhua's financial position?


Financial Position Analysis

Short Term Liabilities: FANH's short term assets (CN¥2.6B) exceed its short term liabilities (CN¥941.2M).

Long Term Liabilities: FANH's short term assets (CN¥2.6B) exceed its long term liabilities (CN¥456.2M).


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


Next Steps

Dividend

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

4.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FANH's dividend (4.74%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: FANH's dividend (4.74%) is in the top 25% of dividend payers in the US market (4.36%)


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: With its high payout ratio (501.1%), FANH's dividend payments are not well 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 (93.7% payout ratio).


Next Steps

Management

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

12.3yrs

Average management tenure


CEO

Chunlin Wang (51 yo)

8.83yrs

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

NamePositionTenureCompensationOwnership
Chunlin Wang
Chairman & CEO8.83yrsno datano data
Yinan Hu
Founder & Director22.58yrsno data18.6%
CN¥ 209.7m
Ge Peng
CFO & Executive Director3.67yrsno data4.52%
CN¥ 51.0m
Oasis Qiu
Investor Relations Managerno datano datano data

12.3yrs

Average Tenure

51yo

Average Age

Experienced Management: FANH's management team is seasoned and experienced (12.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chunlin Wang
Chairman & CEO8.83yrsno datano data
Yinan Hu
Founder & Director22.58yrsno data18.6%
CN¥ 209.7m
Ge Peng
CFO & Executive Director3.67yrsno data4.52%
CN¥ 51.0m
Yunxiang Tang
Independent Director8.25yrsno datano data
Stephen Markscheid
Independent Director13yrsno datano data
Allen Warren Lueth
Independent Director13yrsno datano data
Mengbo Yin
Independent Director11.92yrsno datano data

11.9yrs

Average Tenure

54yo

Average Age

Experienced Board: FANH's board of directors are seasoned and experienced ( 11.9 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 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$1.128b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4CIADB (Deutsche Boerse AG)YesSPONSORED ADRDEEUROct 2007
FANHNasdaqGS (Nasdaq Global Select)YesSPONSORED ADRUSUSDOct 2007

Biography

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 a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 00:10
End of Day Share Price2020/08/07 00:00
Earnings2020/03/31
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.