FANH Stock Overview
Fanhua Inc., together with its subsidiary, distributes insurance products in China.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$6.75|
|52 Week High||US$18.80|
|52 Week Low||US$6.57|
|1 Month Change||-6.90%|
|3 Month Change||-50.15%|
|1 Year Change||-54.21%|
|3 Year Change||-71.93%|
|5 Year Change||-20.31%|
|Change since IPO||-73.31%|
Recent News & Updates
Fanhua To Leave Wall Street. Next Stop, Hong Kong?
Of the three major U.S.-listed Chinese online insurance brokers, the oldest has just announced a plan to go private. Fanhua was the first of the trio to list in New York, leading some to call it "Asia’s first insurance broker,” offering life, property, and casualty insurance through its online and offline channels. The market greeted the news with some brief euphoria before reason returned.
Fanhua Feels The Pinch As Economic Slowdown Dampens Consumer Spending
Online insurance broker’s shares tumble after it reported a sharp drop in third-quarter profit amid jitters about China’s economic growth. Fanhua reported its net income fell by more than 50% in the third quarter, while revenue fell by 16%. The weak results come as China’s tough Covid-19 policy and a slumping property sector dampen demand for discretionary products like life insurance.
|FANH||US Insurance||US Market|
Return vs Industry: FANH underperformed the US Insurance industry which returned 19.4% over the past year.
Return vs Market: FANH underperformed the US Market which returned 4.2% over the past year.
|FANH Average Weekly Movement||7.1%|
|Insurance Industry Average Movement||4.3%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.4%|
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¥2.19b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||5.36|
|Net Profit Margin||8.67%|
How did FANH perform over the long term?See historical performance and comparison
8.9%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 ($6.75) is trading below our estimate of fair value ($20.63)
Significantly Below Fair Value: FANH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FANH is good value based on its PE Ratio (8x) compared to the US Insurance industry average (10.9x).
PE vs Market: FANH is good value based on its PE Ratio (8x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: FANH is good value based on its PEG Ratio (0.2x)
Price to Book Ratio
PB vs Industry: FANH is overvalued based on its PB Ratio (1.2x) 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 (34.9% per year) is above the savings rate (2%).
Earnings vs Market: FANH's earnings (34.9% per year) are forecast to grow faster than the US market (13% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: FANH's revenue (15.2% per year) is forecast to grow faster than the US market (9.1% per year).
High Growth Revenue: FANH's revenue (15.2% 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 (22.4%)
How has Fanhua performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FANH has a high level of non-cash earnings.
Growing Profit Margin: FANH became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: FANH's earnings have declined by 4% per year over the past 5 years.
Accelerating Growth: FANH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: FANH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (38.1%).
Return on Equity
High ROE: FANH's Return on Equity (14.5%) 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¥809.5M).
Long Term Liabilities: FANH's short term assets (CN¥2.2B) exceed its long term liabilities (CN¥305.7M).
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 (8.89%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: FANH's dividend (8.89%) 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 (80.9%), 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 (71.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Yinan Hu (55 yo)
Mr. Yinan Hu Co-Founded Fanhua Inc., in 1998 and serves as its Chief Executive Officer and Chairman of the board since December 16, 2021. Mr. Hu has been a Director at Fanhua Inc. since 1998. He served as...
Experienced Board: FANH's board of directors are seasoned and experienced ( 13.9 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
- Implied Market Cap: US$362.438m
- Shares outstanding: 53.69m
- Website: https://www.fanhuaholdings.com
Number of Employees
- Fanhua Inc.
- Pearl River Tower
- 60th Floor
- Guangdong Province
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/23 23:09|
|End of Day Share Price||2022/01/21 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.