Fanhua Inc., together with its subsidiary, distributes insurance products in China.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$12.00|
|52 Week High||US$11.79|
|52 Week Low||US$19.77|
|1 Month Change||-17.18%|
|3 Month Change||-19.63%|
|1 Year Change||-36.78%|
|3 Year Change||-56.97%|
|5 Year Change||47.42%|
|Change since IPO||-52.55%|
Recent News & Updates
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.
|FANH||US Insurance||US Market|
Return vs Industry: FANH underperformed the US Insurance industry which returned 36.3% over the past year.
Return vs Market: FANH underperformed the US Market which returned 30.7% over the past year.
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
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
|FANH fundamental statistics|
Is FANH overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|FANH income statement (TTM)|
|Cost of Revenue||CN¥2.29b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||6.13|
|Net Profit Margin||9.54%|
How did FANH perform over the long term?See historical performance and comparison
5.0%Current Dividend Yield
Is Fanhua undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FANH ($12) is trading below our estimate of fair value ($20.53)
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 (12.6x) compared to the US Insurance industry average (9.9x).
PE vs Market: FANH is good value based on its PE Ratio (12.6x) compared to the US market (17.1x).
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 (2.2x) compared to the US Insurance industry average (1.1x).
How is Fanhua forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
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 (13.2% per year) is forecast to grow faster than the US market (9.5% per year).
High Growth Revenue: FANH's revenue (13.2% 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%)
How has Fanhua performed over the past 5 years?
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.
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.
What is Fanhua current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FANH's dividend (5%) is higher than the bottom 25% of dividend payers in the US market (1.36%).
High Dividend: FANH's dividend (5%) 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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chunlin Wang (52 yo)
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...
Experienced Management: FANH's management team is seasoned and experienced (13.4 years average tenure).
Experienced Board: FANH's board of directors are seasoned and experienced ( 13 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Fanhua Inc.'s employee growth, exchange listings and data sources
- Name: Fanhua Inc.
- Ticker: FANH
- Exchange: NasdaqGS
- Founded: 1998
- Industry: Insurance Brokers
- Sector: Insurance
- Market Cap: US$644.335m
- Shares outstanding: 53.69m
- Website: https://www.fanhuaholdings.com
Number of Employees
- Fanhua Inc.
- Pearl River Tower
- 27th Floor
- Guangdong Province
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/16 04:42|
|End of Day Share Price||2021/09/15 00:00|
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.