NYSE:CIA

Stock Analysis Report

Executive Summary

Citizens, Inc., through its subsidiaries, provides life insurance products in the United States and internationally.

Snowflake

Fundamentals

Worrying balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Citizens's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.1%

CIA

-0.03%

US Insurance

1.0%

US Market


1 Year Return

-7.5%

CIA

15.1%

US Insurance

6.7%

US Market

Return vs Industry: CIA underperformed the US Insurance industry which returned 15.1% over the past year.

Return vs Market: CIA underperformed the US Market which returned 6.7% over the past year.


Share holder returns

CIAIndustryMarket
7 Day4.1%-0.03%1.0%
30 Day-4.5%-1.6%-1.8%
90 Day-3.8%-3.5%-1.8%
1 Year-7.5%-7.5%17.9%15.1%9.1%6.7%
3 Year-21.5%-21.5%42.0%31.1%46.0%36.6%
5 Year2.9%2.9%74.5%53.7%66.9%48.6%

Price Volatility Vs. Market

How volatile is Citizens's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

1.5x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: Insufficient data to calculate CIA's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate CIA's fair value to establish if it is undervalued.


Price Based on Earnings

PE vs Industry: CIA is unprofitable, so we can't compare its PE Ratio to the Insurance industry average.

PE vs Market: CIA is unprofitable, so we can't compare its PE Ratio to the US market.


Price Based on Expected Growth

Low PEG Ratio: Insufficient data to calculate CIA's PEG Ratio to determine if it is good value.


Price Based on Value of Assets

PB vs Industry: CIA is overvalued based on its PB Ratio (1.5x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is Citizens expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.5%

Forecasted Insurance industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Citizens has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Citizens performed over the past 5 years?

-44.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CIA is unprofitable, and losses have increased over the past 5 years at a rate of -44.4% per year.

Accelerating Growth: Unable to compare CIA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CIA is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (3.1%).


Return on Equity

High ROE: CIA has a negative Return on Equity (-7.15%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CIA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CIA is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Citizens'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: CIA has a low level of unsold assets or inventory.

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


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CIA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CIA is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -6.9% per year.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate CIA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CIA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if CIA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CIA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CIA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Geoff Kolander (43yo)

2.9yrs

Tenure

US$1,990,599

Compensation

Mr. Geoffrey M. Kolander, also known as Geoff has been the Chief Legal Officer & Corporate Strategy and Senior Vice President at Citizens Inc., since June 2, 2015. Mr. Kolander has been Chief Executive Off ...


CEO Compensation Analysis

Compensation vs. Market: Geoff's total compensation ($USD1.99M) is about average for companies of similar size in the US market ($USD1.85M).

Compensation vs Earnings: Geoff's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.8yrs

Average Tenure

53yo

Average Age

Experienced Management: CIA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.7yrs

Average Tenure

70yo

Average Age

Experienced Board: CIA's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$1,99213 Nov 18
Robert Sloan
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares250.92
Max PriceUS$7.94

Ownership Breakdown


Management Team

  • Kay Osbourn (52yo)

    Head of Financial Reporting

    • Tenure: 0yrs
    • Compensation: US$1.01m
  • Larry Carson (65yo)

    Vice President of Financial Reporting & Tax

    • Tenure: 14.3yrs
    • Compensation: US$125.20k
  • Geoff Kolander (43yo)

    President & CEO

    • Tenure: 2.9yrs
    • Compensation: US$1.99m
  • Jim Eliasberg (61yo)

    VP, Chief Legal Officer & Corporate Secretary

    • Tenure: 1.7yrs
    • Compensation: US$357.79k
  • Darin Moore (54yo)

    Chief Information Officer

    • Tenure: 2yrs
  • W. Buchholtz (47yo)

    Vice President of Human Resources

    • Tenure: 2.8yrs
  • Sidney Harp (69yo)

    Executive VP & Director of Agency

    • Tenure: 0yrs
    • Compensation: US$310.33k
  • Jeff Conklin (49yo)

    VP, CFO

    • Tenure: 0.6yrs
    • Compensation: US$343.83k
  • Robert Mauldin (58yo)

    VP & Chief Marketing Officer

    • Tenure: 1.3yrs
    • Compensation: US$465.81k
  • Amanda Crews (41yo)

    Vice President of Operations

    • Tenure: 1.2yrs

Board Members

  • Connie Weaver (67yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$64.50k
  • Dean Gage (76yo)

    Vice Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$135.50k
  • Frank Keating (75yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$115.50k
  • Robert Sloan (70yo)

    Non-Executive Chairman

    • Tenure: 3.3yrs
    • Compensation: US$125.50k
  • Grant Teaff (85yo)

    Director

    • Tenure: 15.8yrs
    • Compensation: US$125.50k
  • Gerald Shields (61yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$115.50k
  • Chris Claus (59yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$124.36k
  • Terry Maness (71yo)

    Director

    • Tenure: 8.7yrs
    • Compensation: US$125.50k
  • Chip Davis (68yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$115.77k

Company Information

Citizens, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Citizens, Inc.
  • Ticker: CIA
  • Exchange: NYSE
  • Founded: 1969
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$354.128m
  • Shares outstanding: 50.23m
  • Website: https://www.citizensinc.com

Location

  • Citizens, Inc.
  • 2900 Esperanza Crossing
  • 2nd Floor
  • Austin
  • Texas
  • 78758
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CIANYSE (New York Stock Exchange)YesClass A Common StockUSUSDJan 1975

Biography

Citizens, Inc., through its subsidiaries, provides life insurance products in the United States and internationally. It operates in two segments, Life Insurance and Home Service Insurance. The Life Insuran ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:35
End of Day Share Price2019/10/11 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.

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