NYSE:CNA

Stock Analysis Report

Executive Summary

CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States.


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

CNAIndustryMarket
7 Day9.0%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 Year7.3%-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

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

NamePositionTenureCompensationOwnership
Dino Robusto
Chairman & CEO3.42yrsUS$13.05m0.12% $10.1m
Douglas Worman
Executive VP & Chief Underwriting Officer3.08yrsUS$3.99m0.019% $1.6m
Kevin Smith
President & COO of CNA Specialty2.92yrsUS$3.38m0.021% $1.8m
Kevin Leidwinger
President & COO of Commercial for CNA insurance companiesno dataUS$3.56m0.029% $2.4m
Albert Miralles
Executive VP & CFO0.17yrno data0.019% $1.6m
Michael Costonis
Executive VP & COO1.58yrsno data0.018% $1.5m
Amy Adams
Senior Vice President of Investments & Treasury5.42yrsno datano data
Jane Possell
Chief Information Officer0.58yrno datano data
Garrett Williams
Senior VP & Chief Compliance Officer1.83yrsno datano data
José González
Executive VP & General Counsel0.75yrno data0.0038% $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

NamePositionTenureCompensationOwnership
Dino Robusto
Chairman & CEO3.42yrsUS$13.05m0.12% $10.1m
Benjamin Tisch
VP & Director2yrsno datano data
Kenneth Siegel
Senior VP & Director1yrno datano data
Andrew Tisch
Director14.17yrsUS$9.67k0.039% $3.3m
James Tisch
Director34.92yrsUS$9.67k0.039% $3.3m
André Rice
Independent Director3yrsUS$150.00kno data
Marvin Zonis
Independent Director26.92yrsUS$155.00k0.00018% $15.1k
Don Randel
Independent Director17.92yrsUS$150.00kno data
Michael Bless
Independent Director2.5yrsUS$150.00kno data
Jose Montemayor
Independent Director13.17yrsUS$170.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNANYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
CNHDB (Deutsche Boerse AG)YesCommon StockDEEURJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 05:17
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.