NasdaqGS:FANH

Stock Analysis Report

Executive Summary

Fanhua Inc. distributes insurance products in China.

Snowflake

Fundamentals

Flawless balance sheet with solid track record and pays a dividend.

Risks

  • Fanhua is covered by less than 3 analysts.

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

-5.6%

NasdaqGS:FANH

1.6%

US Insurance

2.9%

US Market


1 Year Return

16.2%

NasdaqGS:FANH

8.2%

US Insurance

0.2%

US Market

FANH outperformed the Insurance industry which returned 7.1% over the past year.

FANH outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

FANHIndustryMarket
7 Day-5.6%1.6%2.9%
30 Day-12.4%-2.6%-2.3%
90 Day-7.7%1.9%3.1%
1 Year21.0%16.2%10.9%8.2%2.4%0.2%
3 Year283.2%254.4%44.1%33.2%41.7%32.4%
5 Year370.3%334.9%64.0%44.5%55.1%37.9%

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 based on future cash flows and its price relative to the stock market?

19.43x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Fanhua's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Fanhua's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Fanhua is overvalued based on earnings compared to the US Insurance industry average.

Fanhua is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Fanhua is poor value based on expected growth next year.


Price Based on Value of Assets

Fanhua is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

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

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Fanhua's revenue is expected to grow significantly at over 20% yearly.

Fanhua's earnings are expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).

Fanhua's revenue growth is expected to exceed the United States of America market average.

Fanhua's earnings growth is positive but not above the United States of America market average.

Fanhua's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Fanhua is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Fanhua performed over the past 5 years?

36.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Fanhua has delivered over 20% year on year earnings growth in the past 5 years.

Fanhua's 1-year earnings growth is less than its 5-year average (22.7% vs 36.1%)

Fanhua's earnings growth has exceeded the US Insurance industry average in the past year (22.7% vs 4.3%).


Return on Equity

Fanhua has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Fanhua used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Fanhua has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Fanhua's financial position?


Financial Position Analysis

Fanhua is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Fanhua's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Fanhua has no debt.

Fanhua has not taken on any debt in the past 5 years.

Fanhua has no debt, it does not need to be covered by operating cash flow.

Fanhua has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Fanhua has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

5.06%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Fanhua's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Fanhua's dividend is above the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

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

11.3yrs

Average management tenure


CEO

Chunlin Wang (50yo)

7.8yrs

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  ...


CEO Compensation Analysis

Insufficient data for Chunlin to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.

Insufficient data for Chunlin to compare compensation growth.


Management Age and Tenure

11.3yrs

Average Tenure

50yo

Average Age

The average tenure for the Fanhua management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.9yrs

Average Tenure

53yo

Average Age

The average tenure for the Fanhua board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Chunlin Wang (50yo)

    Chairman & CEO

    • Tenure: 7.8yrs
  • Peng Ge (48yo)

    CFO & Executive Director

    • Tenure: 2.7yrs
  • Yinan Hu (53yo)

    Founder & Director

    • Tenure: 21.6yrs
  • Oasis Qiu

    Investor Relations Manager

    • Tenure: 0.0yrs

Board Members

  • Yunxiang Tang (73yo)

    Independent Director

    • Tenure: 7.3yrs
  • Steven Markscheid (65yo)

    Independent Director

    • Tenure: 12.0yrs
  • Chunlin Wang (50yo)

    Chairman & CEO

    • Tenure: 7.8yrs
  • Peng Ge (48yo)

    CFO & Executive Director

    • Tenure: 2.7yrs
  • Allen Warren Lueth (50yo)

    Independent Director

    • Tenure: 12.0yrs
  • Yinan Hu (53yo)

    Founder & Director

    • Tenure: 21.6yrs
  • Mengbo Yin (64yo)

    Independent Director

    • Tenure: 10.9yrs

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$1.562b
  • Shares outstanding: 54.10m
  • 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 Analysis2019/08/22 00:05
End of Day Share Price2019/08/21 00:00
Earnings2019/03/31
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.