NYSE:CNA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer and good value.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CNA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.6%

CNA

0.09%

US Insurance

-4.6%

US Market


1 Year Return

2.3%

CNA

10.9%

US Insurance

38.5%

US Market

Return vs Industry: CNA underperformed the US Insurance industry which returned 8.6% over the past year.

Return vs Market: CNA underperformed the US Market which returned 38.9% over the past year.


Shareholder returns

CNAIndustryMarket
7 Day-2.6%0.09%-4.6%
30 Day10.6%7.6%0.6%
90 Day21.2%7.3%1.9%
1 Year8.9%2.3%14.0%10.9%41.5%38.5%
3 Year4.2%-15.3%23.4%14.2%56.7%46.7%
5 Year97.0%39.8%71.3%49.9%123.5%98.6%

Long-Term 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?

22.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CNA ($42.54) is trading below our estimate of fair value ($54.89)

Significantly Below Fair Value: CNA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CNA is poor value based on its PE Ratio (16.7x) compared to the US Insurance industry average (14.4x).

PE vs Market: CNA is good value based on its PE Ratio (16.7x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: CNA is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CNA's PB Ratio (0.9x) is in line with the US Insurance industry average.


Next Steps

Future Growth

How is CNA Financial forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

25.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNA's forecast earnings growth (25.6% per year) is above the savings rate (2%).

Earnings vs Market: CNA's earnings (25.6% per year) are forecast to grow faster than the US market (20.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CNA's revenue is expected to decline over the next 3 years (-11.5% per year).

High Growth Revenue: CNA's revenue is forecast to decline over the next 3 years (-11.5% 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 (9.5%).


Next Steps

Past Performance

How has CNA Financial performed over the past 5 years?

2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNA has high quality earnings.

Growing Profit Margin: CNA's current net profit margins (6.4%) are lower than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: CNA's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: CNA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CNA had negative earnings growth (-30.7%) over the past year, making it difficult to compare to the Insurance industry average (-4.2%).


Return on Equity

High ROE: CNA's Return on Equity (5.4%) 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 ($9.8B) do not cover its short term liabilities ($29.1B).

Long Term Liabilities: CNA's short term assets ($9.8B) do not cover its long term liabilities ($22.2B).


Debt to Equity History and Analysis

Debt Level: CNA's debt to equity ratio (21.8%) is considered satisfactory.

Reducing Debt: CNA's debt to equity ratio has increased from 21.8% to 21.8% over the past 5 years.

Debt Coverage: CNA's debt is well covered by operating cash flow (63.9%).

Interest Coverage: CNA's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Next Steps

Dividend

What is CNA Financial current dividend yield, its reliability and sustainability?

5.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CNA's dividend (5.34%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: CNA's dividend (5.34%) is in the top 25% of dividend payers in the US market (3.72%)


Stability and Growth of Payments

Stable Dividend: CNA's dividend payments have been volatile in the past 10 years.

Growing Dividend: CNA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.3%), CNA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CNA's dividends in 3 years are forecast to be covered by earnings (86.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Dino Robusto (62 yo)

4.25yrs

Tenure

US$13,054,480

Compensation

Mr. Dino Ennio Robusto is Chairman and Chief Executive Officer of CNA Financial Corporation (CNA). Since joining CNA Financial Corporation in November 2016, he has re-energized the business and reinvigorat...


CEO Compensation Analysis

Compensation vs Market: Dino's total compensation ($USD13.05M) is about average for companies of similar size in the US market ($USD10.48M).

Compensation vs Earnings: Dino's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dino Robusto
Chairman & CEO4.25yrsUS$13.05m0.12%
$ 14.2m
Douglas Worman
Executive VP & Chief Underwriting Officer3.92yrsUS$3.99m0.019%
$ 2.2m
Kevin Leidwinger
President & COO of Commercial for CNA insurance companiesno dataUS$3.56m0.029%
$ 3.4m
Kevin Smith
President & COO of CNA Specialty3.75yrsUS$3.38m0.021%
$ 2.5m
Albert Miralles
Executive VP & CFO1yrno data0.019%
$ 2.3m
Michael Costonis
Executive VP & COO2.42yrsno data0.018%
$ 2.1m
Amy Adams
Senior Vice President of Investments & Treasury6.25yrsno datano data
Jane Possell
Chief Information Officer1.42yrsno datano data
Garrett Williams
Senior VP & Chief Compliance Officer2.67yrsno datano data
Sarah Pang
Senior Vice President of Corporate Communicationsno datano datano data
Emma Riza
Vice President of Corporate Development4.17yrsno datano data
Jennifer Livingstone
Senior VP & Chief Marketing Officer2.67yrsno datano data

3.2yrs

Average Tenure

53.5yo

Average Age

Experienced Management: CNA's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dino Robusto
Chairman & CEO4.25yrsUS$13.05m0.12%
$ 14.2m
Benjamin Tisch
VP & Director2.83yrsno datano data
Kenneth Siegel
Senior VP & Director1.83yrsno datano data
Andrew Tisch
Director15yrsUS$9.67k0.039%
$ 4.6m
James Tisch
Director35.75yrsUS$9.67k0.039%
$ 4.6m
André Rice
Independent Director3.83yrsUS$150.00kno data
Don Randel
Independent Director18.75yrsUS$150.00kno data
Michael Bless
Independent Director3.33yrsUS$150.00kno data
Jose Montemayor
Independent Director14yrsUS$170.00kno data
Jane Wang
Director2.08yrsno datano data

4.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CNA's board of directors are considered experienced (4 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$11.730b
  • Shares outstanding: 271.39m
  • Website: https://www.cna.com

Number of Employees


Location

  • CNA Financial Corporation
  • 151 North Franklin Street
  • Floor 9
  • 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. It operates through Specialty, Commercial, International, Life & Group, and Corporate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/26 23:20
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.