CNA Financial
Market Cap
US$8.4b
Last Updated
2020/04/08 05:17 UTC
Data Sources
Company Financials +
Executive Summary
CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -0.6% per year for the next 3 years
Snowflake Analysis
Undervalued with proven track record.
Similar Companies
Share Price & News
How has CNA Financial's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CNA's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
9.0%
CNA
1.2%
US Insurance
2.4%
US Market
1 Year Return
-29.5%
CNA
-20.0%
US Insurance
-10.0%
US Market
Return vs Industry: CNA underperformed the US Insurance industry which returned -20% over the past year.
Return vs Market: CNA underperformed the US Market which returned -10% over the past year.
Shareholder returns
| CNA | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.0% | 1.2% | 2.4% |
| 30 Day | -22.4% | -18.7% | -11.0% |
| 90 Day | -31.7% | -28.8% | -19.4% |
| 1 Year | -24.3%-29.5% | -18.0%-20.0% | -8.1%-10.0% |
| 3 Year | -13.3%-29.5% | -6.2%-13.6% | 17.3%9.6% |
| 5 Year | 7.3%-26.2% | 17.2%2.9% | 36.1%21.1% |
Price Volatility Vs. Market
How volatile is CNA Financial's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
What Is CNA Financial's (NYSE:CNA) P/E Ratio After Its Share Price Tanked?3 weeks ago | Simply Wall St
What Is CNA Financial's (NYSE:CNA) P/E Ratio After Its Share Price Tanked?1 month ago | Simply Wall St
Should CNA Financial Corporation (NYSE:CNA) Focus On Improving This Fundamental Metric?Valuation
Is CNA Financial undervalued compared to its fair value and its price relative to the market?
40.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CNA ($30.85) is trading below our estimate of fair value ($52.1)
Significantly Below Fair Value: CNA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CNA is good value based on its PE Ratio (8.4x) compared to the Insurance industry average (8.5x).
PE vs Market: CNA is good value based on its PE Ratio (8.4x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: CNA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CNA is good value based on its PB Ratio (0.7x) compared to the US Insurance industry average (0.8x).
Next Steps
Future Growth
How is CNA Financial forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
-0.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CNA's earnings are forecast to decline over the next 3 years (-0.6% per year).
Earnings vs Market: CNA's earnings are forecast to decline over the next 3 years (-0.6% per year).
High Growth Earnings: CNA's earnings are forecast to decline over the next 3 years.
Revenue vs Market: Insufficient data to determine if CNA's revenue is forecast to grow faster than the US market.
High Growth Revenue: Insufficient data to determine if CNA's revenue is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CNA's Return on Equity is forecast to be low in 3 years time (8.2%).
Next Steps
Past Performance
How has CNA Financial performed over the past 5 years?
6.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CNA has high quality earnings.
Growing Profit Margin: CNA's current net profit margins (9.3%) are higher than last year (8%).
Past Earnings Growth Analysis
Earnings Trend: CNA's earnings have grown by 6.2% per year over the past 5 years.
Accelerating Growth: CNA's earnings growth over the past year (23%) exceeds its 5-year average (6.2% per year).
Earnings vs Industry: CNA earnings growth over the past year (23%) underperformed the Insurance industry 43.7%.
Return on Equity
High ROE: CNA's Return on Equity (8.2%) is considered low.
Next Steps
Financial Health
How is CNA Financial's financial position?
Financial Position Analysis
Short Term Liabilities: CNA's short term assets ($9.2B) do not cover its short term liabilities ($27.5B).
Long Term Liabilities: CNA's short term assets ($9.2B) do not cover its long term liabilities ($20.9B).
Debt to Equity History and Analysis
Debt Level: CNA's debt to equity ratio (21.9%) is considered satisfactory.
Reducing Debt: CNA's debt to equity ratio has increased from 20% to 21.9% over the past 5 years.
Debt Coverage: CNA's debt is well covered by operating cash flow (42.6%).
Interest Coverage: CNA's interest payments on its debt are well covered by EBIT (10.3x coverage).
Balance Sheet
Next Steps
Dividend
What is CNA Financial's current dividend yield, its reliability and sustainability?
11.28%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CNA's dividend (11.28%) is higher than the bottom 25% of dividend payers in the US market (1.93%).
High Dividend: CNA's dividend (11.28%) is in the top 25% of dividend payers in the US market (5.46%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, CNA has been paying a dividend for less than 10 years.
Growing Dividend: CNA's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (38%), CNA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CNA's dividends in 3 years are not forecast to be well covered by earnings (95.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Dino Robusto (61yo)
3.42s
Tenure
US$13,054,480
Compensation
Mr. Dino Ennio Robusto is Chairman and Chief Executive Officer of CNA Financial Corporation (CNA). Since joining CNA in November 2016, he has re-energized the business and reinvigorated its underwritin ...
CEO Compensation Analysis
Compensation vs Market: Dino's total compensation ($USD13.05M) is above average for companies of similar size in the US market ($USD7.52M).
Compensation vs Earnings: Dino's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3.42yrs | US$13.05m | 0.12% $10.1m | |
| Executive VP & Chief Underwriting Officer | 3.08yrs | US$3.99m | 0.019% $1.6m | |
| President & COO of CNA Specialty | 2.92yrs | US$3.38m | 0.021% $1.8m | |
| President & COO of Commercial for CNA insurance companies | no data | US$3.56m | 0.029% $2.4m | |
| Executive VP & CFO | 0.17yr | no data | 0.019% $1.6m | |
| Executive VP & COO | 1.58yrs | no data | 0.018% $1.5m | |
| Senior Vice President of Investments & Treasury | 5.42yrs | no data | no data | |
| Chief Information Officer | 0.58yr | no data | no data | |
| Senior VP & Chief Compliance Officer | 1.83yrs | no data | no data | |
| Executive VP & General Counsel | 0.75yr | no data | 0.0038% $317.1k |
1.8yrs
Average Tenure
51yo
Average Age
Experienced Management: CNA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3.42yrs | US$13.05m | 0.12% $10.1m | |
| VP & Director | 2yrs | no data | no data | |
| Senior VP & Director | 1yr | no data | no data | |
| Director | 14.17yrs | US$9.67k | 0.039% $3.3m | |
| Director | 34.92yrs | US$9.67k | 0.039% $3.3m | |
| Independent Director | 3yrs | US$150.00k | no data | |
| Independent Director | 26.92yrs | US$155.00k | 0.00018% $15.1k | |
| Independent Director | 17.92yrs | US$150.00k | no data | |
| Independent Director | 2.5yrs | US$150.00k | no data | |
| Independent Director | 13.17yrs | US$170.00k | no data |
8.3yrs
Average Tenure
64yo
Average Age
Experienced Board: CNA's board of directors are considered experienced (8.3 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
CNA Financial Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: CNA Financial Corporation
- Ticker: CNA
- Exchange: NYSE
- Founded: 1853
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: US$8.368b
- Shares outstanding: 271.25m
- Website: https://www.cna.com
Number of Employees
Location
- CNA Financial Corporation
- 151 North Franklin Street
- Chicago
- Illinois
- 60606
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CNA | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1969 |
| CNH | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1969 |
Biography
CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. The company operates through Specialty, Commercial, International, Life & Group, and Corporate & Other segments. It offers professional liability coverages and risk management services to various professional firms, including architects, real estate agents, and accounting and law firms; directors and officers, employment practices, fiduciary, and fidelity coverages to small and mid-size firms, public and privately held firms, and not-for-profit organizations; professional and general liability, as well as associated standard property and casualty coverages for healthcare industry; surety and fidelity bonds; and warranty and alternative risks products. The company also provides property insurance products, such as property, marine, boiler, and machinery coverages; casualty insurance products comprising workers' compensation, general and product liability, commercial auto, and umbrella coverages; specialized loss-sensitive insurance programs and total risk management services; and run-off long term policies. In addition, it offers long-tail exposures comprising commercial automobile liability, workers compensation, general and medical professional liability, other professional and management liability, and assumed reinsurance run-off and products liability; and short-tail exposures comprising property, commercial automobile physical damage, marine, surety, and warranty. The company markets its products through independent agents, brokers, and general underwriters to small, medium, and large businesses; insurance companies; associations; professionals; and other groups in the marine, oil and gas, construction, manufacturing, life science, property, financial services, healthcare, and technology industries. The company was founded in 1853 and is headquartered in Chicago, Illinois. CNA Financial Corporation is a subsidiary of Loews Corporation.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/08 05:17 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.